From the Sector

Kelheim Fibres GmbH announces that the transaction process pursued as part of the ongoing self-administered insolvency proceedings with the Munich-based LEO III Fund, exclusively advised by the DUBAG Group, could not be successfully completed despite intensive efforts. The purchase agreement, which had already been notarised, could not be executed due to the non-fulfilment of essential closing conditions – in particular, the absence of binding volume commitments from several major customers for the year 2026. As a result, the investor was compelled to withdraw from the agreement, as a viable business model could not be secured.

Despite broad support from the majority of customers and the restructuring measures already successfully implemented, the currently binding order volume is not sufficient to economically justify a regular continuation of operations beyond 31 December 2025. Against this backdrop, Kelheim Fibres must now prepare for an orderly phase-out of production.

In parallel, the company is examining whether a limited continuation of production in 2026 – both in terms of duration and volume – may be possible based on additional binding customer orders. Customers are therefore being asked for swift final commitments. Once these responses have been evaluated, a decision will be made on whether, and to what extent, operations can be maintained beyond the turn of the year.

The workforce and the Works Council were informed of the current developments and potential scenarios on Monday, 24 November 2025.

The company's statement:
"We extend our sincere gratitude to our employees for their exceptional dedication and many years of loyalty. Their commitment during challenging times has shaped our company and significantly helped safeguard our values, quality, and continuity. We deeply regret the necessary step of ceasing operations and greatly appreciate the professional cooperation, engagement, and loyalty of each individual. Our thanks go to all colleagues for their contributions, their support throughout this transition, and their commitment to our community. Together, we carry the responsibility to find fair solutions for everyone affected and will provide support wherever possible in transitioning to new opportunities."