Inside information: Spinnova and Suzano have signed a Letter of Intent regarding plans for a new production facility
SPINNOVA PLC, COMPANY RELEASE, INSIDE INFORMATION, 7 March 2024, 09:00 a.m. EET
Inside information: Spinnova and Suzano have signed a Letter of Intent regarding plans for a new production facility
Spinnova Plc and Suzano S.A. have signed a Letter of Intent (LOI) regarding a potential new production facility for wood-based SPINNOVA® fibre. Spinnova and its partners will deliver the fibre production technology to Suzano, who will be the owner and operator of the new production facility. The preliminary target capacity of the facility is 20 thousand tonnes of fibre per year, and it is likely to be located near an existing Suzano pulp mill.
The LOI is a non-binding agreement where parties wish to record certain criteria as requirements for moving, into the pre-engineering phase of the new facility. The LOI includes also preliminary terms and conditions for the new facility.
As Suzano will be responsible for finding the right funding for the investment into the new facility, Spinnova does not need to raise capital for this plant. The opportunity for Spinnova to invest in other future plants remains at Spinnova’s discretion.
Spinnova and Suzano have been joint venture partners since 2020 in Woodspin, whose first production facility producing wood-based SPINNOVA® fibre opened in 2023 in Jyväskylä, Finland. The Woodspin factory acts as an industrial demonstration of Spinnova’s technology and Suzano’s textile MFC technology and is used for qualifying the process and fibre output to support the investment decision for the new facility.
The pre-engineering phase of the new facility is expected to commence in the second half of 2024. Moving to pre-engineering is subject to Spinnova delivering a Process Design Package (PDP) for the new facility as well as Suzano´s strategic approval, and for certain process and fibre metrics at the Woodspin facility to be met.
“This marks a huge milestone for Spinnova in scaling our fibre technology by a technology sale to Suzano. Together with Suzano, we will continue to work intensely to reach the level where the Spinnova process and fibre are ready for large-scale industrial production”, comments Tuomas Oijala, Spinnova’s CEO.
“Suzano sees great potential in SPINNOVA® fibre and is willing to expand its production capacity in the long run. Integrating the new facility with Suzano’s existing infrastructure should provide additional synergies, critical for the business. We look forward to continuing our collaboration with Spinnova to meet the final requirements for moving forward with the pre-engineering of the new facility”, continues Christian Orglmeister, Suzano’s Executive Officer – New Business, Strategy, IT and Digital.
Spinnova Plc
For further information, please contact:
Tuomas Oijala, CEO
Virva Vesanen, Head of Investor Relations
Tel. +358 20 703 2430
ir@spinnova.fi
Distribution:
Nasdaq Helsinki
Major media
SPINNOVA – Sustainable textile materials, naturally
Spinnova transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough patented technology for making textile fibre out of wood or waste, such as leather, textile or agricultural waste, without harmful chemicals.
The SPINNOVA® fibre creates zero side streams or microplastics, and its CO2 emissions and water use are minimal. SPINNOVA® materials are quickly biodegradable and circular. Spinnova is committed to using only sustainable raw materials such as FSC-certified wood and waste. SPINNOVA® fibre is produced without harmful or complex chemical processes and has the touch and feel of natural fibres such as cotton and linen.
Spinnova has received awards from e.g. the Fast Company, ISPO, Scandinavian Outdoor, ANDAM, Monocle and Marie Claire UK.
Spinnova’s shares (SPINN) are listed on the Nasdaq First North Growth Market Finland.
SPINNOVA® home: www.spinnova.com
Corporate & IR site: www.spinnovagroup.com