The company has in recent years struggled to compete with the prices offered by its competitors in Asia. This competition, coupled with high costs for energy and raw materials, have made it difficult for the company to operate in a financially viable way. It filed for insolvency in late 2024(1) and has been searching for new investors since.
In November 2025, the company announced that it would be purchased by its compatriot, Munich-based investment company LEO III Fonds(2), but the deal fell through because Kelheim Fibres was unable to secure robust, long-term supply agreements with key business partners through 2026. In mid-December 2025, another investor stepped in, but has already pulled out of negotiations.
Kelheim Fibres is now in the process of completing run-out production, following which, its facility will be shut-down. A statement issued by the management of the company reads: “The self-administration has examined all realistic options for continuation. As the required commitments – including the approval of a key customer – were not in place, continuation is unfortunately not economically viable. This is a difficult situation for the employees; the focus is now on an orderly wind-down and the best possible support for the employees.”
Kelheim Fibres was founded in 1935.