Finnish fibre manufacturer Spinnova and strategic partner Suzano have signed a Letter of Intent (LOI) to advance plans for a new wood-based fibre production facility. The facility aims to produce 20 thousand tonnes of fibre per year and is expected to be located near an existing Suzano pulp mill.

While the LOI is non-binding, it establishes specific criteria for progressing into the pre-engineering phase of the facility, including preliminary terms and conditions. Suzano will be responsible for securing funding for the investment, allowing Spinnova flexibility in considering investments for future plants.

The pre-engineering phase is set to commence in the latter half of 2024, contingent upon Spinnova delivering a Process Design Package (PDP) and obtaining Suzano’s strategic approval. Additionally, specific process and fibre metrics at the Woodspin facility must be met.

Tuomas Oijala, CEO of Spinnova, expressed excitement about scaling their fibre technology through the collaboration with Suzano, aiming to reach large-scale industrial production readiness.

Christian Orglmeister, Suzano’s executive officer for new business, emphasized the company's confidence in Spinnova fibre's potential and its commitment to expanding production capacity in the long run. The integration of the new facility with Suzano’s existing infrastructure is expected to provide additional synergies critical for the business.