Spinnova updates its strategy

Spinnova continues its development work on improving its fibre concept efficiency to reduce production and investment costs. To support development work, the Company's goal is to build an international consortium of companies to advance the scaling of Spinnova’s technology. The consortium is formed around the planned acquisition of Woodspin and Suzano Finland, i.e., the full ownership of the Woodspin demo factory, micro fibrillated cellulose (MFC) refining assets that is Suzano Finland, which was announced earlier today (https://spinnovagroup.com/releases/).

“We have received confirmation from textile value chain operators that the properties of Spinnova’s fibre are already sufficient for selected commercial applications. However, fiber production costs are currently too high. For this reason, we will focus in particular on reducing production and investment costs,” says Spinnova’s CEO Janne Poranen.

The goal is to build an international consortium of companies, the aim of which is to accelerate the scaling of the Spinnova concept. We are currently looking for partners for this collaboration,” Poranen continues.

Updated strategy

The company's main goal is to improve the cost efficiency of the production process. 

The company has a clear plan for future scaling of its technology development needs.

Priorities in 2025-2026 are:

+ To develop its technology to be more cost competitive. The fibre works currently already in many applications, but production costs are still too high.

+ To further develop the SPINNOVA® fibre properties, also for non-textile applications.

+ Select wood-based and other cellulose raw materials for the Spinnova process.

+ To build an international consortium of companies to advance the scaling of Spinnova’s technology.

+ To continue promoting the 50/50 joint venture with ECCO, Respin’s leather waste-based fibre commercialisation goals.

+ To target EUR 500 000 annual cost savings through consolidation of Spinnova’s sites in Jyväskylä, Finland.

Spinnova will not give financial guidance for the years 2025 and 2026.

Following the strategic review of Woodspin Spinnova has signed a non-binding term sheet to secure full ownership of Woodspin demo plant

Woodspin Oy, the exclusive producer and distributor of wood-based SPINNOVA® fibre, is a joint venture that is owned by Spinnova Oyj and Suzano S.A., 50% each. The strategic review of Woodspin commenced in February 2025 and the related change negotiations in April.

Following the strategic review, Spinnova Oyj and Suzano S.A. have signed a non-binding term sheet on the following matters:

Spinnova Oyj would acquire all Woodspin Oy shares held by Suzano S.A. for a consideration of EUR 1 (one euro). Both Spinnova and Suzano will continue to fund Woodspin for the financial year 2025, as agreed and committed in February 2025. In 2024, the book value of Spinnova’s share of Woodspin, on Spinnova's balance sheet, totalled EUR 19.4 million as of 31 December 2024.

Spinnova Oyj would acquire all Suzano Finland Oy shares held by Suzano S.A. for a consideration of EUR 1 (one euro). This would include all assets in Suzano Finland, which consist mainly of equipment for refining and microfibrillated cellulose (“MFC”) technology. Most of Suzano Finland Oy’s employees, in total 18, would be part of the acquisition. Suzano Finland Oy is currently fully owned by Suzano S.A.

Suzano Finland provides raw material for manufacturing of wood-based SPINNOVA® fibre and is operating in the same facility in Eteläportti, Jyväskylä as Woodspin.

Spinnova Oyj and Suzano S.A. would terminate the joint venture agreement and all related exclusivity rights, which would enable Spinnova to license the technology to any chosen party producing fibre out of wood-based raw material.

In addition, Suzano would make a capital contribution of EUR 5 million in total to Woodspin and Suzano Finland.

In the short term, the planned transactions would not have an operative impact on Spinnova.

As a result of the agreement, Spinnova would get full ownership of the only large demo facility, with the needed infrastructure and utilities in place to produce SPINNOVA® fibre from pulp to bale. The acquisitions would not have a negative cash flow effect in the short term on Spinnova.

All transactions, the acquisitions of the shares of Woodspin and Suzano Finland, as well as the termination of the related exclusive rights, are subject to the execution of definitive agreements that are estimated to be concluded no later than by the end of August 2025.

Result of change negotiations at Woodspin

The change negotiations in Woodspin covering the entire staff (33 employees), were completed on 26 May 2025 and communicated to the employees today. As a result, most of the staff, 27 employees, will be temporarily laid off until further notice. While Spinnova is looking for alternatives to continue the operations at Woodspin, the operations will be stopped until further notice.