Brazilian cellulose producer, Suzano, announced it will cease further financial investment in the Woodspin plant, a joint venture with Finnish textile innovation company Spinnova. This decision, impacting the production of wood-based fibres, prompts a strategic review of the Woodspin operation and a renegotiation of exclusivity rights between the two companies.
While Suzano will no longer provide funding for the next phase of Woodspin’s development, it maintains its shareholding in Spinnova. The company attributes its withdrawal to a shift in capital allocation strategy and evolving priorities, emphasising that it remains confident in Spinnova’s technology.
Spinnova, meanwhile, is actively reassessing its overall strategy, including its joint ventures and financial objectives for 2025. The company has successfully reduced its operating losses from US $ 22.2 million to US $ 19.5 million in 2024, and its net losses by 14 percent to US $ 17.8 million. However, annual turnover has significantly decreased, falling from US $ 11.3 million to nearly US $ 0.9 million.
The partnership between Spinnova and Suzano, established in 2020, led to the opening of a production facility in Jyväskylä, Finland, in 2023. The original plan involved Spinnova providing its innovative technology, while Suzano would operate the plant, aiming for an annual production of 20,000 tonnes of wood-based fibres.
The strategic review of Woodspin is expected to conclude within the coming months. Following this review, the exclusivity rights regarding Spinnova’s fibre will be reevaluated and potentially terminated, given the substantial interest from other parties in the company’s technology and fibre.
