Woodspin holds the exclusive rights to produce and distribute SPINNOVA fibre derived from wood and is equally owned by Spinnova and Suzano.
The latest change negotiation are a consequence of the strategic evaluation that began on 28 February, which encompasses all related joint ventures and is directed towards planning forthcoming strategies.
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Spinnova anticipates concluding the strategic review within the coming months and intends to provide market updates, including any changes to financial guidance, when deemed relevant.
Earlier this year, Suzano announced it would cease further investments in Woodspin’s wood-based fibre plant and suspend funding while reviewing their joint venture agreement.
The operational costs for Woodspin are substantial, leading to unprofitable results. To achieve profitability, significant investments may be necessary; however, the prospect of securing adequate financing remains uncertain,
“Woodspin’s operations have a heavy cost structure and are unprofitable. Turning the operations profitable is likely to require significant investments, and securing sufficient financing is uncertain,”the company said in a statement.
In 2024, Woodspin reported a loss of €6.7m ($7.2m), with Spinnova bearing €3.4m of that loss. As recorded on 31 December 2024, Woodspin’s book value on Spinnova’s balance sheet stood at €19.4m.
As part of its business reassessment, Woodspin is considering whether to persist with its operations or to shut them down.
The negotiations will involve all 33 employees at Woodspin, and the potential outcomes may include the termination of all staff positions.
The final decision regarding the impact on personnel will be determined upon the completion of these negotiations, which are expected to last a minimum of six weeks.
The implementation of the resulting decisions is projected to occur promptly after conclusion and no later than 31 December 2025.
In March last year, Spinnova and Suzano signed a Letter of Intent that outlined Spinnova and its partners providing fibre production technology to Suzano for a new production facility.
