Fibria purchase 18% of Finnish startup for 5 mi euros

São Paulo – Fibria announced Thursday the acquisition of a participation of the Finnish startup 18% Spinnova for 5 million euros, aiming at the development of products in the coming years.
The Finnish company has focused on the development of low-cost technologies for the production of raw materials for the textile industry, using wood fibres to produce yarns and filaments that could replace cotton, viscose and other inputs in the application on fabrics and nonwovens.
In a statement to the market, the brazilian company announced that the companies will work together on the "development of a pilot production line for confirmation of the viability of technologies developed by Spinnova and pre-commercial scale production".
With the acquisition of the participating interest, the Company shall be entitled to one representative on the Board of Spinnova, reported the brazilian company.
Fibria also stated that "does not in the short or medium term, the need for any cash expenditure relevant to fulfill the terms of the contracts" with the Spinnova.
"This partnership strengthens the positioning of the Company for the development of new products with high added value, beyond the concept of commodity and complement our global leadership in the eucalyptus pulp production," said the President of Fibria, Marcelo Castelli, in a note.