Translation: Original published in Finnish on 3/4/2026 at 8:47 am EET.

Swedish textile-to-textile recycling leader Circulose is joining Spinnova’s ecosystem to accelerate the scaling up of technology. This new partnership is a continuation of agreements announced in recent months, strengthening the company's raw material base for textile waste-based solutions.

Circulose joins Spinnova's ecosystem

Spinnova announced yesterday that the Swedish textile‑to‑textile recycling leader Circulose is joining its ecosystem. Founded on the back of Renewcell, which went bankrupt in 2024, Circulose is one of the most well-known players in circularity within the fashion industry, producing dissolving pulp from textile waste. The collaboration aims to integrate CIRCULOSE® pulp into Spinnova’s ecosystem as a feedstock for producing new textile fibers. The pulp can be integrated into Spinnova’s process at 100% without adding virgin pulp, enabling a higher recycled content in the final fiber. The deepening cooperation now announced is a natural continuation, as Spinnova successfully tested using what was then Renewcell's raw material back in 2023.

News is a continuation of consortium building

The news is similar in nature to recently announced collaborations with players such as INSIDER, Tearfil, and ARMEDANGELS. The agreement is part of Spinnova's strategy to build an ecosystem, or consortium, around the fiber, which promotes the demand and supply of the fiber in the market, ultimately leading to production facilities built on Spinnova's technology. While previous partnerships focused on the end of the value chain, i.e., brands and yarn spinning, Circulose provides the consortium with a critical source of recycled raw materials. We believe securing raw material availability is key for potential technology customers considering investing in production facilities based on Spinnova technology.

The agreement has no immediate financial impact on Spinnova

We view the news positively, as it supports the commercialization path of fiber produced with Spinnova's technology. For the company's investment story and value creation, the most critical aspect remains the technology sales at the core of the strategy, which requires not only building a consortium but also reducing the technology's investment and production costs to a competitive level. Although Spinnova appears to have made progress in its strategy, as evidenced by the H2 report, particularly in reducing technology investment and production costs, it is still very difficult to assess the time remaining until a commercial breakthrough (i.e., an investment decision) from an outside perspective, as well as the difficulty of overcoming the obstacles along the way. For now, we maintain our estimate that the development work and the completion of partner negotiations are at least a year away, although the margin of error in this estimate is still large.