CEO’s Review

Spinnova’s story begins in 2009, when founders Janne Poranen and Juha Salmela worked with microcellulose research at VTT Technical Research Centre of Finland. They began investigating whether wood fibre could be spun into textile fibre in a similar manner as a spider spins protein into a spiderweb. Janne and Juha determined that it could be possible, so they refined and patented this process over the following years into a validated technology platform.

Comments by CEO, Tuomas Oijala

From Financial Statements Bulletin (14 March 2024)

“I joined Spinnova as CEO on 11 December 2023. For me, this is a unique and challenging opportunity to commercialise Spinnova’s sustainable technology innovation. The current tough economic climate is not the easiest for scaling a growth company. During my first months, I have got to know our operations and people with the aim to bring clarity, focus and prioritisation. We are making progress step by step on our journey to increase the production volumes of Spinnova fibre and to bring the fibre to the market in product applications through our committed supply chain and brand partners. It is clear to me that macroeconomic trends, constraints in the global fibre supply chain, and the need for the textile industry to meet its sustainability targets present us with a significant and inspiring opportunity to capture.”

“Our top priority in 2023 was finalizing the technology delivery and the construction of Woodspin’s first factory. We worked throughout the year closely together with our joint venture partner Suzano and Woodspin on ramping up the factory. The ramp-up has progressed somewhat slower than originally anticipated, and therefore, fibre volumes have been limited so far. Suzano’s work related to the efficiency and specifications of the eucalyptusbased micro fibrillated cellulose (MFC) raw material process has progressed with good results. 

At the same time, Spinnova continues to further develop its technology concept to reduce the operational expenses and capital expenditure per tonne of fibre produced. The next step in our scaling is working towards the start of the pre-engineering phase of the next wood-based factory, planned to be owned and operated by Suzano. This includes the technology process design package work, which can also be applied to the planning of other future plants. 

On 31 August, we announced that we would start a strategy review, in which we focused during the second half of the year. The aim was to prioritise those parts of the strategy that, in the short- to medium-term, are expected to deliver the fastest time to positive cashflow generation and that create the most value for the company’s stakeholders. The outcome of the strategy review has been announced today and will be presented in detail in the Capital Markets Day today. 

Spinnova will focus on technology sales and delivering the technology together with its partners. Technology sales will be targeted at where it creates the most value, with upstream raw material partners or downstream textile manufacturers. As we continue to make significant steps in the fibre, expanding its addressable market, as well as in the cost profile of technology investments, we will be able to offer an attractive solution for technology customers.

Other achievements during 2023 included the testing of textile waste as raw material in the Spinnova process with promising preliminary results. Moreover, we entered into a R&D yarn spinning line partnership with our supply chain partner Tearfil. A highlight of commercial and material development work was the launch of a denim blend at the Kingpins trade fair in October 2023. Denim development continues and the aim is to launch commercial denim products in the future. Joint Venture Respin’s development advanced last year and the first product from leather waste, a pair of shoes, has been made successfully.

If the global textile industry wants to shift its material base from conventional materials, such as cotton and polyester, to more sustainable alternatives, we need all the players in the textile value chain on board. Bringing a new material innovation like Spinnova to the market in larger volumes requires investments, incentives and longterm commitments from investors, textile industry players and policymakers.  

Our revenues during 2023 totalled EUR 10.6 million, driven by the technology delivery to Woodspin’s first factory and the operating result was approximately EUR -20.9 million. The operating result was expected as we continued to ramp up our own and our joint venture operations. During 2023 our investments totaled EUR 9.0 million and continued to be primarily into the Woodspin joint venture.

I want to thank our dedicated team and partners for all their hard work during 2023. I look forward to working together to take the next steps on our exciting journey and to execute the new strategy for Spinnova.”

Tuomas Oijala