Woodspin’s swan song was cheaper than a Big Mac.
Spinnova has signed binding agreements to buy out former partner Suzano’s stake in their planned joint production venture, Woodspin Oy. The Finnish fiber firm is paying a token 2 euros ($2.32) for the Brazilian cellulose producer’s shares.
Following the plant’s strategic review in February—which saw Suzano share its intent to cease collaborations as the eucalyptus pulper said it would not invest further in Woodspin’s next phase of cooperation and will temporarily halt financing the facility—the venture entered negotiations in April. As a result of those negotiations, Spinnova signed a non-binding term sheet in June to secure full ownership of the Woodspin demo plant.
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“This grants Spinnova full ownership of the producer and distributor Woodspin, as well as the provider of raw material, Suzano Finland Oy, for manufacturing wood-based Spinnova fiber,” Spinnova said in a statement. “These transactions, subject to customary closing terms, are expected to close within the next couple of weeks.”
To that end, Suzano will make a capital contribution of roughly $5.8 million to Woodspin and Suzano Finland as well.
Per the agreement, Spinnova now has full ownership of the only large facility—the Woodspin demo plant—with the needed infrastructure and utilities in place to produce Spinnova fiber from pulp to bale. However, operations at Woodspin have ceased until further notice while alternatives for continued operations are being sought. But, with the joint venture agreement between Spinnova and Suzano now terminated, Spinnova can license its technology freely.
As Spinnova stated in June, the acquisitions won’t have an adverse cash flow effect in the short term.
“Spinnova has recognized an impairment loss on Woodspin, which will negatively impact Spinnova’s results in 2025,” the company said, noting the impact of the impairment will be communicated in the half-year report for January-June 2025.
Also, as previously stated, Spinnova hasn’t given financial guidance for 2025.
