Saxony injects €9.85 million into WEPA and Honext recycled fiberboard plant

On October 20, 2026, the German state of Saxony awarded €9.85 million in regional funding to Honext x WEPA GmbH, accelerating the construction of a first-of-its-kind circular fiberboard manufacturing facility in Kriebstein. The joint venture between the German tissue manufacturer WEPA and the Spanish circular materials company Honext Material aims to upcycle industrial cellulose waste into high-performance building materials.

Saxony's Economic Minister Dirk Panter formally handed over the grant, which stems from the federal-state GRW-RIGA program designed to improve regional economic structures. This latest public injection complements a €22.4 million debt financing package signed earlier in 2026 with the European Investment Bank (EIB). With total project costs estimated at nearly €59 million, the Kriebstein brownfield site will house two new production lines dedicated to manufacturing the HONEXT® boards.

For the paper and tissue industry, this development represents a critical step in closing the loop on production waste. Traditionally, short cellulose fibers and paper sludge from tissue manufacturing have been challenging to repurpose, often ending up in landfills or incineration. By converting these industrial fiber streams into Cradle to Cradle Gold-certified boards for the construction and interior design sectors, WEPA is creating a high-value secondary market for its byproducts.

The boards offer high structural strength, low weight, and acoustic insulation without the use of toxic resins, directly competing with conventional medium-density fiberboard (MDF). As the Kriebstein facility scales up, it establishes a viable industrial blueprint for cross-sector circularity, linking paper manufacturing waste directly to sustainable construction materials.