2025

Annual Report

Spinnova developed its technology to be more cost‑efficient and advanced the scaling strategy of its technology in 2025

Read CEO Janne Poranen’s review on the year 2025 below

The year 2025 was significant for Spinnova and had an impact on our choices both strategically and operationally. We updated our strategy to reflect the changes in the market environment and focused especially on improving the cost-efficiency of our production process, expanding the raw material base, developing the properties of the fibre, and building an international business consortium.

During the year, we terminated the joint venture agreement with Suzano, and Spinnova acquired the shares of Woodspin Oy and Suzano Finland Oy in full. The termination of the agreement will enable the licensing of Spinnova’s technology in the future without restrictions, also for wood pulps. As a result of the ownership arrangement, the demo factories, including the infrastructure and equipment for production of SPINNOVA® fibre and the manufacturing of its raw material (MFC, microfibrillated cellulose), were transferred to Spinnova. Production at the demo factories has been halted for the time being. The SPINNOVA® fibres produced at the demo factory in early 2025 are sufficient for the needs of the current partnerships. Any resumption of production will be done when it is rational business-wise or strategically. This is currently being evaluated.

Our pilot plants for the production of MFC and SPINNOVA® fibre have been in active use throughout the year. The results achieved in the development of the technology are based on the work done in these development environments.

The development of Respin progressed as planned. In the autumn, Respin successfully produced leather waste-based fibre for our partner ECCO’ for a planned product launch in 2026. Leather waste-based textile fibre is a very interesting topic, especially for luxury brands, many of which also have their own leather production. We have progressed in discussions with several luxury brands and believe that with them, we are able to accelerate the scaling of Respin.

During the year, our development work focused on reducing production and investment costs to make our technology concept more attractive to future partners.

A significant result is that the energy consumption of MFC’s manufacturing has been reduced by more than 50% compared to the previous concept used at the Woodspin factory. In practice, this means that we have a good idea of what the industrial-scale MFC concept will be like. The fibre recipe was developed to improve cost-effectiveness, and as a result, the quality of the fibre also improved, which further improves the functionality of the fibre in the following production processes. We were also able to reduce the cost of additives in the recipe by about a fifth. With these improvements alone, the production costs of SPINNOVA® fibre will be clearly reduced, and we will continue our development work in the same direction.

Towards the end of the year, we started the development of the fibre finishing concept. Pilot-scale tests have yielded good results on the functionality of the concept, and the work is progressing towards demo scale. Until now, the fibre has been finished by our downstream processing partners, but it has been both expensive and uneven in quality. With the developed concept, we are able to better manage the quality of the end-product and reduce total costs.

The development of the new drying concept has progressed to the testing phase. If the concept works as expected, it is expected to significantly reduce investment costs in relation to production capacity. In addition, investment costs can also be reduced with the right supplier and location choices. Thus, at the beginning of this year, we started looking into this more closely.

Research and testing of different wood-based pulps were carried out with several different industrial partners. We have obtained promising results from both wood-based pulps and, e.g. the use of oat husk as a raw material for SPINNOVA® fibre. These projects will be advanced during the coming spring, and negotiations will also be held simultaneously on how to take the projects towards industrial scaling.

In addition to raw materials, various fibre applications outside of textiles were actively explored in order to find markets with higher added value. We are actively working on several collaborations, which potential will clarify during the current year.

We continued our cooperation with our brand partners with a slightly changed emphasis. During the second half of the year, we focused on developing an international business consortium that aims to bring together different players in the value chain and thus accelerate the scaling of our technology. We had active negotiations with several dozen partners, and at the end of the year we were already able to announce that the German fashion brand ARMEDANGELS and TOMMY HILFIGER joined our consortium. Also, Fashion for Good, which is respected in the industry, participates in the development of the consortium.

Although partnerships are not yet notably reflected in turnover, their significance is great. Our goal is to find the right partners with whom we can advance the commercial scaling of our technology. The process takes time, but the interest is strong, and the vision of changing the sustainable raw material base resonates widely. Discussions with players in different industries and value chains continue very actively.

During the year, we renewed our organisation and adapted our operations through change negotiations to the company’s current development stage and operating environment. In early 2026, we announced the appointment of a new Chief Commercial Officer, Mikko Lassila. He will further strengthen our team with his solid experience in sales management and support our growth targets.

We moved into 2026 with strong forward-looking energy and will continue to work determinedly to achieve our goals. I would like to warmly thank our partners for their good cooperation and trust in Spinnova. I would like to thank Spinnova’s entire team for their excellent work and significant results despite the challenges of the past year. Thank you to all our owners for your trust. We can promise that the Spinnova team will always do their best and everything towards our common vision!

Janne Poranen
CEO and Chair of the Board