Fibria pays EUR 5M and acquires 18% of Spinnova.

Fibria, a Sao Paolo, Brazil-based forestry company, producer of eucalyptus pulp from planted forests, announced getting tinto an agreement to acquire a minority interest in Finnish-based Spinnova and partner in the development, production and marketing of new materials using its technologies.

Fibria will pay 5 million euros for 18% of Spinnova’s capital. Under the shareholders’ agreement, Fibria will have the right to appoint one member to Spinnova’s board of directors.

Spinnova, founded in 2014 by CEO Janne Poranen and based in Jyväskylä, Finland, develops low-cost and environmentally sustainable technologies for making fabrics. The technologies uses wood fibers to produce filaments and yarns that can replace cotton, viscose and other raw materials in both woven and nonwoven applications.

The partnership with Spinnova and its technological platform will enable Fibria, as part of its strategy of entering new markets, to develop products with new applications over the coming years.

The agreement signed between the Brazilian forestry company and the Finnish startup features a joint investment in the development of a pilot production line for testing the feasibility of Spinnova’s technologies and production on a pre-commercial scale. If the project reaches the commercial phase, the two companies could create a joint venture for producing and marketing products.