The potential new production facility for wood-based Spinnova fibre targets a capacity of 20 thousand tonnes of fibre per year and is likely to be situated near an existing Suzano pulp mill.
The LOI, while non-binding, sets out specific criteria for advancing into the pre-engineering phase of the new facility, including preliminary terms and conditions.
As such Suzano will undertake the responsibility of securing funding for the investment, relieving Spinnova of the need to raise capital for the plant. This strategic move allows Spinnova the flexibility to consider investments in future plants as per its discretion.
The pre-engineering phase for the new facility is anticipated to begin in the latter half of 2024, contingent upon the fibre maker delivering a Process Design Package (PDP) and obtaining Suzano's strategic approval. Additionally, specific process and fibre metrics at the Woodspin facility must be met.
“This marks a huge milestone for Spinnova in scaling our fibre technology by a technology sale to Suzano,” commented Tuomas Oijala, Spinnova’s CEO. “Together with Suzano, we will continue to work intensely to reach the level where the Spinnova process and fibre are ready for large-scale industrial production.”
The collaboration between Spinnova and Suzano dates back to 2020 when they became joint venture partners in Woodspin. The first production facility of Woodspin, located in Jyväskylä, Finland, commenced operations in 2023, serving as an industrial demonstration of Spinnova's technology and Suzano's textile MFC technology.
This facility is said to play a crucial role in qualifying the process and fibre output to support the investment decision for the new facility.
Christian Orglmeister, Suzano's executive officer for new business, strategy, IT, and digital added: “Suzano sees great potential in Spinnova fibre and is willing to expand its production capacity in the long run.
“Integrating the new facility with Suzano’s existing infrastructure should provide additional synergies, critical for the business. We look forward to continuing our collaboration with Spinnova to meet the final requirements for moving forward with the pre-engineering of the new facility.”
