Spinnova announced yesterday that the company’s CEO Tuomas Oijala has announced his resignation.

Following Suzano's decision, Spinnova currently does not expect Suzano to invest in a factory in the near future.

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.