Metsä Group has signed an agreement for partial funding from the EU Innovation Fund, securing a maximum grant of Euro 86.5 million for its Muoto packaging product mill planned for construction in Rauma, Finland. The company confirmed the agreement following negotiations that began in October 2024, according to Metsä Group.

Despite securing the grant, Metsä Group CEO Niklas von Weymarn emphasized that no final investment decision has been made regarding the Muoto mill or business launch. Funding from the Innovation Fund remains conditional upon meeting several milestones outlined in the agreement.

Von Weymarn highlighted challenges with the Innovation Fund's framework, noting that the instrument does not adequately accommodate projects constructed in multiple phases.

The Muoto project is advancing on three fronts: developing a new manufacturing method with Valmet at the demo plant in Äänekoski, conducting pre-commercial sales with potential customers, and engaging in pre-engineering planning for the Rauma mill. A final investment decision on the Muoto mill and business launch may be considered in the second half of this year if progress in these areas proves promising.

Muoto is designed as a new type of molded fibre packaging intended for applications such as takeaway trays, berry boxes, and packaging trays.