Business
Spinnova has developed a production technology for a transformative new textile fibre (“SPINNOVA® fibre”) which is produced with a mechanical production process.
Spinnova’s production technology provides a sustainable alternative for the global textile market. Spinnova’s production technology allows for the production of SPINNOVA® fibre from multiple raw material inputs, including wood and leather waste, and other renewable raw materials such as agricultural, food and beverage industry waste and textile waste.
CO2 emissions of SPINNOVA® fibre are about 64.5% less than for cotton
SPINNOVA® fibre is 100 per cent recyclable, quickly biodegradable, contains no microplastics and can be produced without dissolution or the use of harmful chemicals or harmful additives. CO2 emissions from the production of SPINNOVA® fibre are 64.5 per cent less than that of cotton over the lifecycle from farming to fibre processing, and considerably less than that of polyester and viscose. 1
Having completed the main phase of research and development, Spinnova is ramping up its global commercialisation phase. Spinnova’s technology platform has been proven effective at the Company’s industrial scale pilot production facility in Jyväskylä, Finland that has been operational for more than two years.
Spinnova’s technology platform and SPINNOVA® brand are protected by strong worldwide intellectual property rights (“IPR”) protection.
Business model
Spinnova’s business model consists of three parts:
- Spinnova is the sole provider of its patented and scalable technology to partners for fast ramp-up
- Spinnova engages in joint ventures with leading raw material providers to produce and sell SPINNOVA® fibre made from wood pulp and leather waste to apparel brands and other buyers
- Spinnova works directly with apparel brands and develops fabrics together with such apparel brands to suit the needs of the apparel brands
Business targets
The Group’s medium-term business targets within the next four to six years are:
- to reach 150,000 tonnes of SPINNOVA® fibre production capacity;
- to be EBIT positive; and
- to enter into up to 20 commercial textile brand partnerships, which have SPINNOVA® materials in their product lines.
The Group’s long-term business targets within the next ten to twelve years are:
- to reach one million tonnes of SPINNOVA® fibre production capacity;
- to achieve a cumulatively greater than EUR 1 billion cash margin from technology sales;
- to achieve more than EUR 200 million EBIT per annum level consisting of the Company’s share of profits from joint ventures, recurring technology fees and service maintenance fees; and
- to enter into up to 80 commercial textile brand partnerships, which have SPINNOVA® materials in their product lines.
1 Source: Simreka’s environmental impact comparison 2020.