Finland-based textile innovator Spinnova has secured a Research and Development (R&D) loan from Business Finland, amounting to a maximum of €12.7m ($13.7m).
Spinnova explained that the R&D project will support the scaling of its technology sales and is a part of the company's R&D roadmap for lowering the capital expenditure and operational expenses of production technology, presented earlier this year at Capital Markets Day.
The loan disbursement has been split into two phases. In the first phase of the project, spanning two years, Spinnova will receive €7.7m to focus on enhancing process efficiency, further fibre recipe development, and automatisation development of its technology.
The second phase, which Spinnova pointed out is dependent on the completion of certain technical and commercial criteria, will unlock an additional €4.9m over the subsequent 1.5 years.
This phase will focus on product development, driving Spinnova’s expansion into new textiles and other applications, alongside additional improvements to production efficiency.
Spinnova also clarified that the entire R&D project budget stands at €25m, with the Business Finland loan covering 50% of the estimated total cost.
Juha Salmela, chief technology officer at Spinnova, expressed appreciation for the loan support, stating: "We are grateful that Business Finland continues to support Spinnova in the commercialisation of our fibre technology. With this significant financing, we are able to speed up our R&D work, which is done together with our partners, in order to increase the cost competitiveness and attractiveness of the unique Spinnova technology."
Spinnova further shared that the loan's amortisation is set to begin in 2029 with an interest rate of 3 percentage points below the base interest rate, as defined by the Ministry of Finance Finland (currently 3.75%) or at least 1%.
Spinnova reiterated that no additional external financing is needed to meet its strategic targets, affirming that this statement remains in place, as the R&D loan is intended for a specific project and will not dilute shareholder value.
The company said it has previously received grants from Business Finland, for supporting initiatives like developing Spinnova fibre from textile and agricultural waste streams, noting that these earlier development projects continue concurrently with the now-starting R&D project.
Recently, Spinnova partnered with Helsinki-based brand ASK Scandinavia to launch an eco-friendly, sustainable handbag set to hit the market in 2025.
