Origin Confirms Three New CapFormer Lines Nearing Completion, Eight Total Lines Expected by End of Year
— CapFormers 2-4 being built and tested, expected to pass Factory Acceptance Tests in Q2 —
“Getting our first CapFormer system fully operational earlier this month was a huge milestone for us. But that was always just a first step in a much longer journey,” stated Origin CEO John Bissell. “Today we’re thrilled to announce that our next three systems are expected to complete their Factory Acceptance Tests in Q2 and to begin commercial production starting in Q3. As we indicated previously, forthcoming lines will incorporate Origin design modifications to increase throughput to achieve superior unit economics.”
“We’re also excited to confirm our previous guidance around having eight CapFormer systems online by the end of this year,” added Bissell. “To go from zero lines to eight lines in less than a year is admittedly a tall order, especially for a first-of-its-kind product and a first-of-its-kind manufacturing line. But we believe our team is up to the task and we are working to make that a reality every day. As a practical matter, all of these new systems will be completed and rolled out on a staggered basis. We plan to provide updates on major milestones for each of the new CapFormer lines in the coming months via our social media accounts.”
“Most of these systems will be used to produce our previously announced PCO 1881 compliant caps to fulfill the high customer demand we’re seeing for that cap format,” Bissell added. “However, we are not stopping there. Based on customer demand, our current plan is to utilize some of these systems to expand beyond the initial 1881 format into new, likely larger, cap formats as well. The already significant manufacturing, performance and gross margin advantages of our current PET caps are magnified at larger cap sizes. In a nutshell, bigger is better for us when it comes to caps right now. We plan to share more about the new formats we’re pursuing and the favorable economics entailed as those plans come together in the coming months, potentially in conjunction with a customer announcement.”
“Looking beyond 2025, we expect to be adding lines continuously at a roughly similar pace in the coming years as we pursue the massive opportunity presented by the
About Origin Materials
Origin is a technology company with a mission to enable the world’s transition to sustainable materials. Our innovations include PET caps and closures that bring recycling circularity and enhanced performance to a
Cautionary Note on Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “project,” “potential,” “seem,” “seek,” “target,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements about the timing of adding manufacturing lines, our current and future manufacturing lines’ production rates, Origin’s ability to continually improve its technologies and manufacturing techniques, statements regarding Origin Materials’ business strategy and estimated total addressable market, successful completion of FAT for our future CapFormer systems, and Origin’s anticipated production of new and larger cap formats and the advantages when making such caps. The forward-looking statements are based on various assumptions, whether or not identified in this press release, and on the current plans, objectives, estimates, expectations, and intentions of the management of Origin and are not predictions of actual performance and inherently involve significant risks and uncertainties. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Origin. These forward-looking statements are subject to a number of risks and uncertainties including, but not limited to, the fact that Origin Materials may be unable to successfully commercialize its products; the effects of competition on Origin Materials’ business; the uncertainty of the projected financial information with respect to Origin; disruptions and other impacts to Origin’s business. Other factors that could adversely affect the Company’s operations include those discussed in the Company’s Quarterly Report on Form 10-Q filed with the
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Origin Materials
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Source: Origin Materials, Inc.
