Origin confirms three new CapFormer lines nearing completion, eight total lines expected by end of year
Origin Materials, Inc., a technology company with a mission to enable the transition to sustainable materials, confirmed that three additional CapFormer lines are currently being built and tested and are expected to complete their Factory Acceptance Tests in Q2. They also confirmed previous guidance that they are on target to have a total of eight CapFormer lines online by the end of 2025.
“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 utilise 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 $65B caps and closures market,” Bissell went on. “We are acutely aware that success is not just launching one CapFormer line, or even eight CapFormer lines. Our vision from the start has been to build a platform capable of converting a significant share of the industry to PET caps in the coming years. Our goal is to leverage this platform to transform the caps industry by scaling to accommodate hundreds of caps lines over time.”