Spinnova has been granted a Business Finland R&D loan for developing its fibre production technology
SPINNOVA PLC, PRESS RELEASE, 28 October 2024, 1:00 pm EET
Spinnova has been granted a Business Finland R&D loan for developing its fibre production technology
Spinnova has been granted an R&D loan by Business Finland of a maximum of EUR 12.7 million for its research and development (R&D) work for the period 5 July 2024 – 31 December 2027, which is divided into two phases. The loan amount in the first phase totals EUR 7.7 million, lasting two years. The loan amount of the second phase, lasting one and a half years, is evaluated to be EUR 4.9 million. A prerequisite for granting the second phase is certain technical and commercial criteria, which must be met in the first phase of the R&D project. The loan amount represents 50% of the project’s total cost estimate, which totals EUR 25 million, including both phases.
The first phase of the project focuses on process efficiency, further fibre recipe development, and automatisation development of Spinnova’s technology. In the second phase, the focus will be on product development for new textile and other applications, in addition to process efficiency. The loan’s amortisations will start in 2029, and the interest rate is three percentage points below the base interest rate, defined by the Ministry of Finance Finland (currently 3.75%) or at least one per cent.
This R&D project supports the scaling of Spinnova’s technology sales. The project work is part of Spinnova’s R&D roadmap for lowering the capital expenditure and operational expenses of production technology, presented earlier this year at Spinnova’s Capital Markets Day.
“We are grateful that Business Finland continues to support Spinnova in the commercialisation of our fibre technology. With this significant financing, we are able to speed up our R&D work, which is done together with our partners, in order to increase the cost competitiveness and attractiveness of the unique Spinnova technology,” says Spinnova’s Chief Technology Officer, Juha Salmela.
Spinnova has previously stated that no additional external financing is required for Spinnova to achieve its strategy targets. This statement remains in place as this R&D loan is intended for a specific R&D project and has no dilutive effect on shareholders. Spinnova has previously received grants from Business Finland, for example, for developing SPINNOVA® fibre from textile and agricultural waste streams. These earlier development projects continue concurrently with the now-starting R&D project.
Spinnova Plc
For further information, please contact:
Ben Selby, Chief Financial Officer and Deputy CEO
Tel. +358 20 703 2430
ir@spinnova.fi
Spinnova – The textile material innovation
Spinnova technology transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough patented technology for making textile fibre out of wood pulp or waste, such as leather, textile or agricultural cropping waste, without harmful chemicals or dissolving.
Spinnova technology creates no side streams in the fibre production process, and SPINNOVA® fibre has minimal CO2 emissions and water use, as well as being biodegradable and recyclable. Spinnova technology uses a mechanical process, giving the fibre the look and feel of a natural cellulosic fibre such as cotton.
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