Spinnova Plc and Suzano S.A. have solidified their collaboration with the signing of a Letter of Intent (LOI) aimed at establishing a new production facility for wood-based Spinnova fiber. The LOI outlines plans for Suzano to assume ownership and operation of the facility, with a projected annual capacity of 20 thousand tonnes of fiber. Likely to be situated close to an existing Suzano pulp mill, the facility represents a significant step towards expanding the production of sustainable fiber materials.
The non-binding LOI delineates key criteria for advancing into the pre-engineering phase of the facility's development, including preliminary terms and conditions. Notably, Suzano will spearhead the effort to secure funding for the project, alleviating the need for Spinnova to raise capital. This strategic move allows Spinnova the flexibility to explore potential investments in future plants independently.
Since 2020, Spinnova and Suzano have been collaborative partners in Woodspin, an entity focused on advancing wood-based Spinnova fiber technology. The successful operation of Woodspin's inaugural production facility in Jyväskylä, Finland, serves as a testament to the viability of Spinnova's innovation and Suzano's expertise in textile MFC technology.
The forthcoming pre-engineering phase, slated to commence in the latter half of 2024, hinges on several factors, including the delivery of a Process Design Package (PDP) by Spinnova and strategic approval from Suzano. Additionally, meeting specified process and fiber metrics at the Woodspin facility is deemed crucial.
Tuomas Oijala, CEO of Spinnova, expressed enthusiasm for the partnership's potential to scale fiber technology and achieve large-scale industrial production. Meanwhile, Christian Orglmeister, Suzano's Executive Officer for New Business, Strategy, IT, and Digital, emphasized the company's commitment to expanding Spinnova fiber production capacity, leveraging existing infrastructure, and fostering synergies to drive business growth.
The collaboration between Spinnova and Suzano signifies a significant milestone in advancing sustainable fiber production, underscoring their shared vision for innovation and environmental stewardship.
