Suzano stops financing Woodspin, remains shareholder of Spinnova

Business

Credits: Spinnova

Suzano, the Brazilian cellulose producer and investor of Spinnova's Woodspin plant that produces wood-based fibres, will not invest further in the next phase of its cooperation with the Finnish textile innovator and will temporarily stop financing the plant. Both companies are starting a strategic review of Woodspin and will renegotiate the exclusivity rights, according to a joint press release.

Suzano, which claims to be one of the world's largest cellulose producers, emphasises that the decision stems from changing priorities and a capital allocation strategy, and not on Spinnova's technology. Suzano remains a shareholder in Spinnova.

Meanwhile, Spinnova continues to work on its technological developments and is reviewing its strategy, including joint ventures and financial targets for 2025. Thanks to strategic changes, Spinnova managed to reduce its loss in 2024. The operating loss decreased from 20.9 million euros to 18.3 million euros, while the net loss decreased by 14 percent to 16.8 million euros. However, the annual turnover shrank significantly, from 10.6 million euros to almost 0.8 million euros.

Spinnova and Suzano have been partners in Woodspin since 2020. In 2023, they opened their first production facility for Spinnova wood-based fibres in Jyväskylä, Finland. At that time, the plan was for Spinnova to supply the technology, while Suzano would own and operate the plant and produce 20,000 tonnes of fibres annually.

The duo's strategic review for Woodspin is anticipated to be completed within the coming months. An assessment of exclusivity rights regarding the fibre, which may be terminated upon completion, will take place in light of significant interest in other parties in Spinnova's fibre and technology.

This article originally appeared on FashionUnited.NL. It was translated to English using AI.

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