Spinnova, Finland based fiber Technology Company, has been able to procure additional financing in order to secure the next phase in its growth and has also ramped up the production at its pilot factory. The company is working towards the development of ‘the world’s most sustainable textile fiber’.
Finnish public funding agencies, Business Finland and OP Bank will fund Spinnova’s pilot factory investment. OP bank has granted Innofin Loan financing of EUR 4.5 million (US $ 5.1 million) assured by the European Investment Bank. Also, the Business Finland is providing a loan of EUR 3 million to Spinnova as both the companies have been in a partnership for three years.
Janne Poranen, CEO, Spinnova, said “Thanks to our financiers, starting the pilot factory and product development work are moving full speed ahead. Licensing the technology now being developed in Finland is our most likely future business model, so piloting the technology concept on an industrial scale is now our main priority.”
The company has replaced the toxic viscose process by developing a cellulose fiber process that uses wood and waste stream based fibers instead of cotton. The process involves no dissolving or other complex chemicals. The fiber is said to have an exceptionally small footprint and offers opportunities to create a circular fiber production system.
Veli-Pekka Ihanus, Senior Advisor, Business Finland, said “Its’ been a pleasure following Spinnova’s journey from a research-driven to an export company. It has set a great example that anything can be achieved with long-term determination towards work. What’s also admirable is that the founders have set their sights on the global market from day one.”
lkka Kivimaki, Founder at Venture Capital Company Maki.vc, a new shareholder in Spinnova, said “ He sees sustainable businesses as a great opportunity to make good investments and business like this can be scaled to be bigger than the Finnish paper industry.”
Moreover, Spinnova has recently announced its’ alliance with Fashion for Good, a global initiative supported by C&A Foundation to try to make fashion more sustainable. It will connect Spinnova to manufacturers, brands and investors that are capable of fast tracking the implementation and adoption of its innovation.