Origin Materials And SCGP Announce Strategic Partnership In Innovation And Sustainability To Explore Licensing Origin Technology For ASEAN-Based Plant
WEST SACRAMENTO, CALIF. & BANGKOK--(BUSINESS WIRE)--
Origin Materials (“Origin”) (NASDAQ: ORGN, ORGNW), the world’s leading carbon negative materials company with a mission to enable the world’s transition to sustainable materials, and SCG Packaging PLC (“SCGP”), a leading multinational consumer packaging solutions provider, today announced a strategic partnership to explore licensing Origin technology for use in an ASEAN-based manufacturing facility.
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The strategic partnership includes a joint development agreement (JDA) between Origin and SCGP. The companies aim to develop sustainable, carbon-negative products from eucalyptus feedstocks provided by SCGP with applications in food packaging, logistics, automotive, and construction.
As part of the joint development work, Origin has successfully processed and tested SCGP’s eucalyptus feedstock in its West Sacramento, California, pilot facility and confirmed similar yields to other sustainable wood residues that Origin has evaluated. As a feedstock, eucalyptus offers several benefits including rapid growth, adaptability to diverse environments, and other properties useful for industry.
“Our work with SCGP reflects the power and versatility of our technology platform to capitalize on a wide range of plentiful, local feedstocks,” said Origin Materials Co-CEO Rich Riley. “This strategic partnership opens pathways for further scaling our technology, including potentially through a global licensing strategy. We are excited to take this significant step forward in Origin’s mission to enable the world’s transition to sustainable materials.”
The companies are exploring the production of plastic PET (polyethylene terephthalate), carbon black derived from HTC (hydrothermal carbon) for use in automotive tires, biofuels, as well as PEF (polyethylene furanoate), a next-generation polymer with an attractive combination of sustainability and performance characteristics for packaging. The intended sustainable products made from eucalyptus feedstock would leverage Origin’s patented technology platform to strengthen SCGP’s supply chain, innovative capability, and the value of its addressable markets by turning the carbon found in sustainable wood residues into useful materials while also capturing carbon in the process.
“SCGP has always prioritized sustainability in its business operation, focusing on the efficient use of resources through innovation and packaging solutions,” said SCGP CEO Wichan Jitpukdee. “It is a great opportunity that Origin, the world's leading carbon negative materials company, shares the same goal of supporting SCGP's sustainability efforts through expanding its expertise in development and maximizing the benefits and sustainability of Eucalyptus as a sustainable resource, while also expanding in ASEAN. This is a significant step in taking the business towards strong and sustainable growth, while evolving the quality of life for people in society and creating sustainability for all stakeholders.”
About Origin Materials
Headquartered in West Sacramento, Origin Materials is the world's leading carbon negative materials company. Origin’s mission is to enable the world’s transition to sustainable materials. For over a decade, Origin has developed a platform for turning the carbon found in inexpensive, plentiful, non-food biomass such as sustainable wood residues into useful materials while capturing carbon in the process. Origin’s patented technology platform can help revolutionize the production of a wide range of end products, including clothing, textiles, plastics, packaging, car parts, tires, carpeting, toys, fuels, and more with a ~$1 trillion addressable market. In addition, Origin’s technology platform is expected to provide stable pricing largely decoupled from the petroleum supply chain, which is exposed to more volatility than supply chains based on sustainable wood residues. Origin’s patented drop-in core technology, economics and carbon impact are supported by a growing list of major global customers and investors.
For more information, visit www.originmaterials.com.
About SCG Packaging PLC (SCGP)
SCGP is a leading multinational consumer packaging solutions provider, offering fiber packaging, consumer and performance packaging, foodservice products, and pulp and paper products. Its solutions encompass a diversity of designing and publishing services that are intended to supplement the operations of business partners and add value to fulfill consumers’ diverse needs. SCGP is committed to lighting up the modern way of life by being the leading company to support customers, consumers, society and the environment to progress and grow sustainably with its manufacturing bases in Thailand, Vietnam, Indonesia, Malaysia, the Philippines, the UK, Spain, the Netherlands, and the USA.
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,” “potential,” “seem,” “seek,” “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 regarding Origin Materials’ business strategy, estimated total addressable market, access to financing sources, budget and timelines for Origin 1 and Origin 2, ability to convert capacity reservations and offtake agreements into revenue, ability to enter new end-markets, ability to develop new product categories, commercial and operating plans, product development plans, anticipated growth and projected financial information and ability to realize the anticipated benefits of any partnerships discussed in the press release. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Origin Materials and are not predictions of actual performance. 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 Materials. These forward-looking statements are subject to a number of risks and uncertainties, including 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 as a result of outbreaks such as the COVID-19 pandemic, Russia’s military intervention in Ukraine, the impact of severe weather events, and other global health or economic crises; changes in customer demand; and those factors discussed in the Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on February 23, 2023 under the heading “Risk Factors,” and other documents Origin Materials has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Origin Materials presently does not know, or that Origin Materials currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Origin Materials’ expectations, plans, or forecasts of future events and views as of the date of this press release. Origin Materials anticipates that subsequent events and developments will cause its assessments to change. However, while Origin Materials may elect to update these forward-looking statements at some point in the future, Origin Materials specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Origin Materials’ assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
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