The construction work for Woodspin, a joint venture between Spinnova and its strategic partner Suzano, was completed in October last year, following work to finalise technology installations.
Spinnova says the factory is now up and running and has been producing fibre since February 2023. According to Spinnova and Suzano, the factory aims to be producing a million tonnes of fibre annually within 10-12 years.
Spinnova is planning to launch its first products using Suzano micro-fibrillated cellulose (MFC) as raw material.
In its latest financial statement, Spinnova said it has already begun drawing up plans for a second plant, which is anticipated to be completed after 2024.
Finland-based Spinnova developed patented technology for making textile fibre out of wood or waste, such as leather, textile or agricultural waste, without harmful chemicals.
The financial report claims that Spinnova and Suzano are actively collaborating to increase the effectiveness of raw material processing. Spinnova outlines the business case for the next factory investment, which is being finalised and will put into practice what they have learned from the first factory’s business care.
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Spinnova’s chief executive officer Kim Poulsen stated in the report: “Spinnova’s committed and talented team reached many significant milestones in 2022. We completed the first commercial factory construction work for Woodspin and strengthened the management and our key operational teams.”
Spinnova and Suzano increased the capital investment budget of the factory project in June last year to approximately EUR31m (US$33m), representing a EUR9m increase to the initial investment budget made in 2020.
The two companies each made an additional EUR4.5m capital investment commitment, raising each JV partner’s commitment from EUR11m to EUR15.5m.
Challenges in the global supply chain, uncertain market conditions and increasing inflation increased the costs of materials and services in 2022, while the impact from increased energy prices was a minor factor on Spinnova’s results.
Last year, Spinnova partnered with Marimekko to launch a sustainable collection in line with the principles of the circular economy.
The company also debuted Bestseller jeans using Spinnova eco-friendly fibres.