Spinnova revises strategy after Suzano no longer wants to invest
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Spinnova is going back to the drawing board to rethink its strategy after Suzano decided not to invest in the next phase of their partnership. The Brazilian wood pulp giant said this decision was based on a realignment of priorities and capital allocation, rather than a lack of confidence in Spinnova technology, according to its annual report.
Spinnova and Suzano signed a letter of intent in March 2024 that may require a new production facility to realize a wood-based Spinnova fibre. Suzano will remain a shareholder in the Finnish company.
Despite this change, Spinnova will continue to work on the development and demonstration of its fiber technology. The company has previously launched its own MFC concept, which enables it to demonstrate the complete production from pulp to fibre. “Terminating the collaboration with Suzano has consequences for our short-term choices,” says Janne Pranen, chairman of the board and co-founder of Spinnova. “We will evaluate our strategy, taking into account recent decisions.”
Spinnova has mutually agreed to initiate a strategic review of the Woodspin joint venture, which will be completed within a few months. The Finnish company still sees "significant interest from other parties in Woodspin's fibre and technology" and will therefore also assess the terms for the termination of the exclusivity rights that are part of the joint venture agreement, shares Tuomas Oijala, CEO of Spinnova.
The Finnish company has also entered into a partnership with Valmet, a global technology provider that will supply equipment for future factories. The partnership should also open doors to new market opportunities. Spinnova also signed a letter of intent with Ecco in July, aimed at scaling up production of leather-based fibres at Respin. Both companies expect to make a decision on scaling up and commercialisation by the end of the first quarter of 2025.
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