Speciality viscose fibres producer Kelheim Fibres GmbH is to fully close its operations on March 31^st, after its sale to a potential new investor fell through at short notice.

At the same time, despite the support of a large proportion of its customers and restructuring measures already implemented, the company, based in Kelheim, Germany, was not able to achieve sufficient off-take volumes for an economically viable continuation of the business.

Employees were informed of the decision on January 26^th and the company’s Works Council and self-administration team have agreed on a reconciliation of interests and a social plan. In addition, a transfer company will be established to support employees in the transition to new employment.

“The self-administration has examined all realistic options for continuation,” management said in a statement. “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 and the focus now is on an orderly wind-down and the best possible support for employees.”

www.kelheim-fibres.com