German viscose fibre maker, Kelheim Fibres, files for bankruptcy

Kelheim Fibres GmbH, a prominent German producer of specialty viscose fibres, has initiated insolvency proceedings under a protective shield at Regensburg District Court. The company, grappling with escalating energy and raw material costs, coupled with intense price competition from Asian rivals, has found itself in a financially precarious position.

In a bid to alleviate its financial burden, Kelheim Fibres, in collaboration with its financiers, devised a restructuring plan in June. This plan included support from its hometown, Kelheim, which acquired a key property to ease the company's financial strain.

However, the company's economic situation continued to deteriorate as Asian competitors aggressively slashed prices, intensifying competition and eroding Kelheim's profitability.

Under the protective shield procedure, Kelheim Fibres aims to sustain production operations and complete its restructuring plan. The company's specialty viscose fibres find applications across various industries, including fashion, hygiene, medical products, nonwovens, and specialty papers.