Metsä Group Signs Agreement on EU Funding for Muoto Packaging Product Mill, but Challenges Remain

The technology used to manufacture Muoto products converts wet fibre pulp into three-dimensional packaging without any intermediate steps.

March 12, 2025 - In October 2024, Metsä Group announced that it had been invited to negotiations on partial funding from the EU Innovation Fund for the first Muoto packaging product mill planned for construction in Rauma in Finland. The negotiations have now been concluded and an agreement on partial funding has been signed.

The maximum funding, which is in the form of a grant, is around EUR 86.5 million.

"We're pleased to have signed the agreement, but we wish to emphasise that as a company, we're still not ready to decide on an investment in a mill in Rauma and on a business launch. Despite the agreement, funding from the Innovation Fund for our project is still not set in stone. To actually receive funding, we must first achieve several ambitious milestones defined in the agreement," says Niklas von Weymarn, CEO of Metsä Group's innovation company Metsä Spring.

According to von Weymarn, the Innovation Fund instrument does not adequately recognise mills constructed in several phases.

"This is the root cause of our challenge. However, the Innovation Fund instrument has its own rules, and we understand that they must be followed," he adds.

Metsä Group is promoting the Muoto project on three fronts. At the demo plant in Äänekoski, a new manufacturing method is being developed jointly with Valmet. Pre-commercial sales were initiated with potential customers last autumn to gain a better understanding of the market's views of the Muoto product. The pre-engineering planning phase for a potential mill in Rauma began early last year.

If promising results are achieved on each of these three main fronts, Metsä Group may be in a position to consider investing in the Muoto mill and Muoto business launch no earlier than the second half of this year.

About Muoto Packaging

Wood fibre-based Muoto products are an alternative to plastic packaging. Made from renewable raw materials and recyclable, Muoto packaging is suitable for use in takeaway trays, berry boxes, packaging trays or composite packaging, for example.

The technology used to manufacture Muoto products converts wet fibre pulp into three-dimensional packaging without any intermediate steps. In addition to being easy to mould into different shapes, Muoto is lightweight, strong, and recyclable and ready to be shipped to end customers as such.

Metsä Group uses wood to make recyclable products for the day-to-day lives of millions of people globally. The Group focuses on wood supply and forest services, wood products, pulp, paperboards, and tissue and greaseproof papers.

SOURCE: Metsä Group