Jyväskylä-based Spinnova, a Finnish company that aims to transform the way textiles are manufactured globally, has been awarded an R&D loan of up to €12.7M from Business Finland to advance its textile manufacturing technology.
The loan, which spans July 2024 to December 2027, is divided into two phases: €7.7M for the first two years, focused on process efficiency and automation, and €4.9M for the remaining 1.5 years, emphasising product development. The second phase is contingent on Spinnova achieving specific technical and commercial milestones.
The loan, covering 50 per cent of the project’s €25M estimated cost, will start amortisation in 2029 with a discounted interest rate three percentage points below Finland’s base rate (currently 3.75 per cent) or at least one per cent.
This project aligns with Spinnova’s R&D roadmap and is aimed at reducing production costs and operational expenses as the company prepares to scale its technology sales.
Capital utilisation
Juha Salmela, Spinnova’s CTO, says, “We are grateful that Business Finland continues to support Spinnova in the commercialisation of our fibre technology.”
“With this significant financing, we are able to speed up our R&D work, which is done together with our partners, in order to increase the cost competitiveness and attractiveness of the unique Spinnova technology,” adds Salmela.
Spinnova previously stated that it doesn’t need extra external funding to reach its goals. The new R&D loan from Business Finland is specifically for a project and won’t impact shareholders’ equity.
Previously, Spinnova received grants from Business Finland to develop its fiber technology from waste materials, and these projects will continue alongside the new R&D efforts.
Making textile fibre without harmful dissolving chemicals
Spinnova has developed patented technology that changes textile production by creating fiber from wood pulp and waste materials, including leather, textiles, and agricultural waste. This process is environmentally friendly, using no harmful chemicals and generating no waste.
The resulting SPINNOVA fiber has low CO2 emissions, minimal water use, and is both biodegradable and recyclable, resembling natural fibers like cotton.
SPINNOVA fiber can be used in products like trousers, denim, shirts, jackets, t-shirts, and accessories. The company has already launched several products with global brands, including t-shirts, trousers, jackets, and even skis.
Spinnova’s shares are publicly traded on the Nasdaq First North Growth Market Finland.
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