Establishment in Sundsvall according to plan - moving from preparations into construction and mounting of equipment
July — September
Financial information
Significant events during the interim period
January—September
Financial information
Significant events after the interim period
CEO’s comments
Establishment in Ortviken according to plan — moving from preparations into construction and mounting of equipment.
The work with the establishment in Ortviken has now entered a new phase, meaning that Renewcell's new operations in Ortviken is beginning to take physical shape. At the beginning of the quarter the old Paper machine 5 (PM5) removed and the machine hall mostly empty. Since then, we have carried out preparatory work as planned, such as demolition of unusable installations and later piling and casting of foundations for the machines to be installed. We are happy to conclude that Ortviken has once again proved to provide excellent conditions for the establishment of Renewcell's operations as problems with basic civil work often means costly delays for companies in new establishments. We have continued our investments in machinery, equipment and organization during the quarter. For the most part, we have been able to manage the general cost increases for building materials by changing to more cost-effective materials in places where appropriate. Despite the fact that costs have increased slightly, we are still in a good position in relation to our budget. The project has so far not been affected either by the supply shortage because our larger orders were placed before the disturbances struck with greater force during the summer and late summer. So far, the global imbalance in commodity flows have not affected us. Nevertheless, our major logistics flows will start around Q2 2022, so we will follow the development for container shipping prices carefully. All in all, we therefore still have so far seen no reason to change our financial planning.
The market's interest in Circulose® remains strong. After planned test runs and optimization work as well as a summer break at the facility in Kristinehamn, we got off to a strong
start during the third quarter and are well in phase in relation to our goals regarding availability and quality. We continue to sell industrial quantities to customers for both commercial fiber production and testing.
In line with our “pull strategy” in the value chain, we have during the period worked intensively with both existing and new brand partners. With the relatively low supply of Circulose® at present, it is a matter of allocating existing volume to pilot collections and quality tests, and at the same time deepening conversations about how we can help brand partners achieve their stated goals of becoming sustainable during this decade.
World leaders will soon gather in Glasgow for the delayed COP26 climate summit. In the words of the IPCC, it is now code red humanity and the 1.5-degree target may soon be out
of reach. Sustainability is probably the strongest macro trend right now, and which is even stronger than digitalisation. There are few heads of state or company leaders who do not put sustainability extremely high on the agenda. We are confident that humanity has the opportunity to solve the climate crisis. Renewcell's message is that the situation is serious, but that with boldness, innovation and hard work we can actually build a long-term sustainable world. Here, Renewcell is well positioned for many years of development to create a sustainable textile and fashion industry
Stockholm, November 2021
Patrik Lundström – CEO