Spinnova Plc: Woodspin increases capital investment budget to enhance sustainability and R&D capabilities and account for cost inflation. Construction schedule on track for completion by end of 2022
SPINNOVA PLC, COMPANY RELEASE, 2 JUNE 2022 at 8:45 a.m. EEST
INSIDE INFORMATION
Spinnova Plc: Woodspin increases capital investment budget to enhance sustainability and R&D capabilities and account for cost inflation. Construction schedule on track for completion by end of 2022
Woodspin, the joint venture of Spinnova and its strategic partner, Suzano, has decided to increase the capital investment budget of its factory project under construction in Central Finland.
The revised capital investment budget amounts to approximately EUR 31 million, which represents an EUR 9 million increase to the initial investment budget made in 2020. Spinnova and Suzano are each making an additional EUR 4.5 million capital investment commitment, raising each JV partner’s commitment from EUR 11 million to EUR 15.5 million.
The approved investments are strategic choices to enhance the overall operational sustainability of production and the factory’s R&D capabilities. The impact of increased cost inflation in construction and technology prices has also been taken into account in the revised budget.
The cost effects of these strategic choices are the main contributors to the additional investment amount. These choices include additional improvements to the plant’s operational sustainability and improvements in R&D and technical capabilities. In addition to the already decided heat pump technology that will be leased, an advanced process heat recovery system is added to the capital investment budget. The plant’s low-emission technology and surplus heat can be utilized to reduce emissions of the local area, resulting in a positive climate impact. Additional technology investments are also being made as part of this investment to optimize the production drying concept for the 50 thousand tonnes plant which is currently at the planning stage.
Technology installations for the Woodspin plant will take place at the end of the summer and construction is on schedule for end of 2022 completion as previously announced. The planning for the next 50 thousand tonnes plant is ongoing and the previously communicated planned future reductions in technology capital expenditure per tonne are unchanged.
The updated Woodspin budget does not affect Spinnova’s outlook for 2022. The company restates that during 2022, Spinnova’s revenues are expected to grow in comparison to 2021, driven primarily by higher technology sales of the project deliveries to Woodspin and Respin, and that during 2022, whilst Spinnova focuses on investing in growth and production scaling, the company is not expected to be profitable. Spinnova will finance the additional EUR 4.5 million capital investment from existing cash reserves.
Spinnova Plc
For further information, please contact:
Janne Poranen, 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 – Sustainable textile materials, naturally
Spinnova transforms the way textiles are manufactured globally. Based in Finland, Spinnova has developed breakthrough technology for making textile fibre out of wood or waste, such as leather, textile or agricultural waste, without harmful chemicals.
The patented SPINNOVA® fibre creates zero waste and side streams or microplastics, and its CO2 emissions and water use are minimal. SPINNOVA® materials are quickly biodegradable and circular. Spinnova is committed to using only sustainable raw materials such as FSC certified wood and waste. SPINNOVA® fibre is produced without harmful or complex chemical processes, and has the touch and feel of natural fibres such as cotton and linen.
Spinnova has received awards from e.g. the Fast Company, ISPO, Scandinavian Outdoor, ANDAM, Monocle and Marie Claire UK.
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