Spinnova Plc and Suzano S.A. have formalized their intent to collaborate on a prospective wood-based fiber production facility through the signing of a Letter of Intent (LOI). Under the terms of the agreement, Spinnova and its partners will provide the fiber production technology to Suzano, who will assume ownership and operation of the envisioned facility. The facility's initial target capacity stands at 20 thousand tonnes of fiber annually, with considerations for its location in close proximity to an existing Suzano pulp mill.
The LOI serves as a preliminary agreement outlining key parameters for advancing into the pre-engineering phase of the facility. Among other aspects, it delineates preliminary terms and conditions governing the establishment of the new production site.
With Suzano taking charge of securing financing for the investment, Spinnova is relieved of the need to raise capital for the plant. This arrangement affords Spinnova the flexibility to potentially invest in forthcoming plants at its discretion.
Since 2020, Spinnova and Suzano have maintained a joint venture partnership under Woodspin. Notably, Woodspin's inaugural production facility, inaugurated in 2023 in Jyväskylä, Finland, serves as a real-world demonstration of Spinnova's technology and Suzano's textile MFC technology. This facility has played a pivotal role in validating the process and fiber output, thereby informing the decision-making process for the new facility.
The pre-engineering phase for the upcoming facility is slated to commence in the latter half of 2024. Progression into this phase hinges upon Spinnova's delivery of a Process Design Package (PDP) for the new facility, Suzano's strategic endorsement, and the attainment of specified process and fiber metrics at the Woodspin facility.
Tuomas Oijala, CEO of Spinnova, lauded the agreement as a significant milestone in the company's quest to scale its fiber technology through a collaborative venture with Suzano. He emphasized the joint commitment to achieving the requisite standards for large-scale industrial production of Spinnova's process and fiber.
The partnership between Spinnova and Suzano underscores their shared dedication to advancing sustainable fiber solutions, heralding a promising future for eco-friendly textile manufacturing.
