Origin Materials partners with Hordijk for PET bottlecap production

WEST SACRAMENTO/NETHERLANDS - Origin Materials (NASDAQ:ORGN), a materials technology company currently valued at $109 million, and Dutch packaging manufacturer Royal Hordijk Packaging announced a strategic partnership to mass produce PET bottlecaps, according to a press release statement issued by the companies. According to InvestingPro data, Origin Materials maintains a strong balance sheet with more cash than debt, though the company faces profitability challenges.

Under the partnership, Hordijk will use its PET extruders to produce sheet material for use in CapFormer production lines owned by Origin but operated by Hordijk at its European facilities. The production lines will convert PET sheet into bottlecaps, including tethered caps, utilizing high-speed equipment.

"Hordijk combines expert manufacturing, a robust base of operations in Europe, and significant global reach," said Origin Materials CEO John Bissell in the statement.

Rik Hennink, CEO at Hordijk, noted that the partnership aligns with the company’s commitment to circular packaging solutions.

The companies aim to address what they describe as a market exceeding $65 billion. According to the statement, the PET caps are designed to improve recyclability through features like cap tethering, enable light-weighting, and extend product shelf life. While the market opportunity is substantial, InvestingPro analysis reveals Origin Materials generated $29.9 million in revenue over the last twelve months, with challenging gross profit margins of just 1.3%. Unlock 10+ additional financial insights and metrics with an InvestingPro subscription.

Hordijk, a family-owned company with over 100 years of experience in packaging innovation, manufactures plastic packaging solutions for food, personal care, pharmaceutical, and horticultural sectors, serving customers in more than 25 countries.

Origin Materials develops sustainable materials technologies, including specialty materials and a patented biomass conversion platform. The company maintains a healthy liquidity position with a current ratio of 9.51, indicating strong short-term financial stability despite currently operating at a loss.

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