Spinnova Plc and Suzano S.A. have signed a Letter of Intent (LOI) regarding a potential new production facility for wood-based SPINNOVA® fibre. Spinnova and its partners will deliver the fibre production technology to Suzano, who will be the owner and operator of the new production facility. The preliminary target capacity of the facility is 20 thousand tonnes of fibre per year, and it is likely to be located near an existing Suzano pulp mill.

The LOI is a non-binding agreement where parties wish to record certain criteria as requirements for moving, into the pre-engineering phase of the new facility. The LOI includes also preliminary terms and conditions for the new facility. As Suzano will be responsible for finding the right funding for the investment into the new facility, Spinnova does not need to raise capital for this plant.

The opportunity for Spinnova to invest in other future plants remains at Spinnova's discretion. Spinnova and Suzano have been joint venture partners since 2020 in Woodspin, whose first production facility producing wood-based SPINNOVA® fibre opened in 2023 in Jyväskylä, Finland. The Woodspin factory acts as an industrial demonstration of Spinnova's technology and Suzano's textile MFC technology and is used for qualifying the process and fibre output to support the investment decision for the new facility. The pre-engineering phase of the new facility is expected to commence in the second half of 2024.

Moving to pre-engineering is subject to Spinnova delivering a Process Design Package (PDP) for the new facility as well as Suzano´s strategic approval, and for certain process and fibre metrics at the Woodspin facility to be met.