Inside information: Delay in reaching targeted process metrics required for moving to pre-engineering of the 20kt factory investment planned by Suzano
SPINNOVA PLC, COMPANY RELEASE, INSIDE INFORMATION 19 NOVEMBER 2024 at 11:40 a.m. EET
Inside information: Delay in reaching targeted process metrics required for moving to pre-engineering of the 20kt factory investment planned by Suzano
In March 2024, Spinnova Plc and Suzano S.A. signed a Letter of Intent (LOI) regarding a potential new production facility for wood-based SPINNOVA® fibre. It was expected that the pre-engineering phase of the new facility would commence in the second half of 2024. Reaching the targeted process metrics required for the project to move to the pre-engineering phase is expected to be delayed from the end of 2024.
Technology development of fibre-spinning has progressed well in terms of increasing the output of the fibre drying units, and the main sub-processes have already been validated separately. However, validating process efficiency metrics at targeted capital and operating expenditure levels at the Woodspin factory for the entire process from pulp to fibre will not be met during 2024. Alternative plans will now be pursued together with Suzano for the fastest way to validate end-to-end process efficiency metrics in order to move to the next phase of the project. Suzano is responsible for the MFC development, and Spinnova is responsible for the fibre-spinning development. The targeted timeline for the next wood-based fibre factory will be announced later.
According to the LOI, moving to pre-engineering is subject to Spinnova delivering a Process Design Package (PDP) for the new facility as well as Suzano´s strategic approval, and for certain process and fibre metrics at the Woodspin facility to be met.
The PDP is ready according to the LOI criteria and fibre quality has been demonstrated to have reached targets. Fibre quality has been confirmed by agreed brand and supplier partners as well as a yarn spinning test conducted in November 2024, where it was confirmed that SPINNOVA® fibre at the current blend level is fully spinnable using industrial processes and can achieve required yield levels.
Spinnova is simultaneously continuing to expand its own pilot capacity to demonstrate the entire process from pulp to fibre using any cellulosic feedstock. This is per its announced plans to develop new raw materials to drive technology sales for fibre production from raw materials other than wood.
Spinnova’s financial guidance for 2024 and its strategy targets are unchanged.
Spinnova Plc
For further information, please contact:
Tuomas Oijala, CEO
Tel. +358 20 703 2430
ir@spinnova.fi
Certified advisor:
Aktia Alexander Corporate Finance Oy
Tel. +358 50 520 4098
Distribution:
Nasdaq Helsinki
Key media
Spinnova – The textile material innovation
Spinnova technology transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough patented technology for making textile fibre out of wood pulp or waste, such as leather, textile or agricultural cropping waste, without harmful dissolving chemicals.
The Spinnova technology creates no side streams in the fibre production process, and the SPINNOVA® fibre has minimal CO2 emissions and water use, as well as being biodegradable and recyclable. The Spinnova technology uses a mechanical process which gives the fibre the look and feel of a natural cellulosic fibre such as cotton.
Spinnova’s shares (SPINN) are listed on the Nasdaq First North Growth Market Finland.
SPINNOVA® home: www.spinnova.com
Corporate & IR site: www.spinnovagroup.com