In a significant shift, Brazilian cellulose producer Suzano has announced it will cease further investment in its collaboration with Finnish textile innovator Spinnova.
This decision, revealed on February 28, 2025, marks a turning point in the partnership that began in 2020.
Suzano's move is attributed to a realignment of its priorities and capital allocation strategy, rather than a lack of confidence in Spinnova's technology. Despite this setback, Suzano will maintain its shareholding in Spinnova.
The companies have agreed to initiate a strategic review of their joint venture, Woodspin, which is expected to conclude within months. This review will also reassess the exclusivity rights outlined in their agreement, potentially opening doors for Spinnova to explore partnerships with other interested parties.
Spinnova, known for its innovative wood-based textile fiber production, will continue to implement its technology roadmap, including its proprietary MFC concept. The company has announced plans for a comprehensive assessment of its strategy, encompassing all joint ventures, and will reevaluate its strategic targets and financial guidance for 2025.
This development comes after the companies signed a Letter of Intent in March 2024 for a potential new production facility, which now appears unlikely to materialize in the near future.
The news has significant implications for the sustainable textile industry, as Spinnova's technology offers an eco-friendly alternative to traditional fiber production methods. The company's process creates textile fiber from wood pulp or waste without harmful chemicals, resulting in minimal CO2 emissions and water use.
As the situation unfolds, industry observers will be watching closely to see how Spinnova navigates this challenge and pursues its mission to transform global textile manufacturing.
