Considering the capacity of Woodspin’s pre-industrial plant, the contract is hardly significant for Spinnova even in a favorable scenario. We estimate that PUMA could be an attractive partner for Suzano, which is to invest in manufacturing SPINNOVA® fiber on an industrial scale.

The company's announcement last week of a delay in the 20,000-ton factory plan with Suzano shifted our projections and increased our required return.

The companies previously expected the pre-engineering phase of the new facility to begin in the second half of this year. However, Spinnova announced on Tuesday that it expects a delay in achieving the targeted process metrics required to move into the pre-engineering phase of the project.

The total cost estimate for the multi-year work, which is at the core of the company's strategy and already included, at least to a large extent, in our forecasts, is 25 MEUR, half of which will be covered by Business Finland's low-cost debt financing.

Spinnova's H1 report was quite surprise-free compared to our expectations, both in terms of technological developments and H1 numbers.

We find the exclusive partnership promising from the perspective of both companies. From Spinnova's point of view, Valmet's fiber expertise, resources and solvency can facilitate the work to lower the investment and operational costs of the technology and increase credibility in the eyes of technology customers.

A decision on the scale-up and commercialization of Respin production will be made by the end of Q1'25. Spinnova's role in development is that of a technology supplier, in line with the company's strategy.