Inside information: Spinnova to review its strategy and medium- and long-term business targets
Spinnova PLC, Company Release, INSIDE INFORMATION, 31 August 2023 at 8.35 a.m. EEST
Inside information: Spinnova to review its strategy and medium- and long-term business targets
The demand drivers and opportunity for Spinnova continue to be very strong and the company’s ambition level to transform the global textile industry is unchanged. Spinnova has decided to evaluate its existing strategy to prioritise areas in the strategy that in the short- to medium-term deliver the fastest time to positive cashflow generation and that create the most value for the company’s stakeholders.
Spinnova expects to conclude the assessment of its strategy in the coming months, after which the results of the review will be presented in more detail including key actions and any changes to medium- and long-term business targets. Financial guidance for full year 2023 is unchanged.
Spinnova’s unique sustainable technology is a key differentiator. To recognize the value of its technology offering, the company has decided to review opportunities to expand the licensing of its technology to new customers. In the future, Spinnova sees great potential in developing circular raw materials such as textile waste and agricultural waste, as well as recycled SPINNOVA® fibre. Initial tests show that refining these raw materials into micro fibrillated cellulose (MFC) may be more efficient than refining other raw materials Spinnova has worked with. The company has received significant interest from customers wanting to build plants that convert multiple circular raw materials into SPINNOVA® fibre.
“We see a significant opportunity to take a leadership role in the circularity of the textile industry. Brands and end consumers want to see more textiles made using circular raw materials. Spinnova’s technology does not use harsh chemical processes and does not reduce fibre quality when using recycled raw materials. We will continue to work closely with apparel and other brands to develop our fibre and the range of commercial applications for end consumers, that in turn will drive a larger addressable market for our technology customers,” says Ben Selby, Interim CEO of Spinnova
Together with Suzano, Spinnova is gathering the learnings from the first Woodspin plant to support the decision making for the next Woodspin factory investment. At the same time Spinnova continues to further develop the technology concept to reduce capital expenditure per tonne of fibre produced compared to the first Woodspin plant. While Suzano develops its MFC process it is expected that the first Woodspin facility will mainly be used for R&D to test new MFC batches and that commercial production volumes will be limited in the short term. The market opportunity and ambition level with Suzano to scale Woodspin’s production capacity remains unchanged.
“At the MFC plant at Suzano Finland in Jyväskylä, we are currently scaling up a new technology and it is very normal that this takes some time. As Woodspin’s supplier of MFC we are committed to continuing to develop the efficiency of the MFC process and to provide Woodspin with MFC at the needed quality level,” Christian Orglmeister, Suzano’s Executive Officer – New Business, Strategy, IT and Digital continues.
Spinnova will continue to have the option to invest into all future Woodspin and Respin plants, as per the respective joint venture agreements. The company will evaluate whether it participates in these investments based on the value it creates for Spinnova’s shareholders compared to other opportunities to invest Spinnova’s capital. Regardless of whether Spinnova invests its own capital into future plants, Spinnova will continue to be the exclusive technology provider to Woodspin and Respin, and they will continue to be important technology customers of Spinnova.
“Our current strategy has served us well so far. We have reached the significant milestone of handing over the technology installation for Woodspin’s first plant and now is the right time for us to review our strategy again to prioritise the actions that have the potential to deliver the greatest value for Spinnova’s stakeholders going forward,” says Janne Poranen, Chair of the Board at Spinnova.
Spinnova Plc
For further information, please contact
Ben Selby, CEO (interim), CFO
Tel. +358 20 703 2430
Sophie Jolly, Interim Head of Investor Relations
Tel. +358 40 828 7317
ir@spinnova.fi
Certified advisor:
Aktia Alexander Corporate Finance Oy
Tel. +358 50 520 4098
Distribution:
Nasdaq Helsinki
Key media
SPINNOVA – Sustainable textile materials, naturally
Spinnova transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough technology for making textile fibre out of wood or waste, such as leather, textile, or agricultural waste, without harmful chemicals.
The patented SPINNOVA® fibre creates zero waste and 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 Helsinki First North Growth Market.
SPINNOVA® home: www.spinnova.com
Corporate & IR site: www.spinnovagroup.com