West Sacramento-based Origin Materials Inc. is partnering with Thailand-based Indorama Ventures, the world's largest producer of PET plastic resins, to accelerate the mass production of Origin's zero-carbon and biologically sourced plastic and other compounds.
Origin (Nasdaq: ORGN) has developed technology and processes to turn wood waste materials into zero-carbon plastic that doesn’t use petroleum products.
"We are thrilled to partner with Indorama Ventures, the world’s largest producer of virgin and recycled PET resins, to combine our strengths across technology development, commercial production and supply chain operations," said Origin co-CEO Rich Riley, in a news release. "Together we aim to help decarbonize the world’s materials."
PET is the most recycled plastic in the world. It's been sourced for decades from petroleum, but Origin developed and patented processes to generate the material from wood and wood scrap.
Bangkok-based Indorama Ventures Public Co. Ltd. and Origin are also considering using samples of bio-based products in limited product launches with high-profile brands, Origin said.
Origin already has many high-profile brands committed to using its products, including Paris-based international luxury brand company LVMH Moët Hennessy Louis Vuitton, New York-based cosmetics powerhouse Revlon Inc. (NYSE: REV) and PepsiCo Inc.
"As part of our Vision 2030, we are striving to explore and employ advanced technologies for sustainability. Strategic partnerships that speed up the introduction of innovative new technology play an important role, including this one with Origin Materials," said Yash Lohia, chairman of environmental, social and corporate governance with Indorama, in a news release. "Driving the commercialization of bio-based materials production will create advantages for Indorama Ventures as well as the chemical industry and other sectors. We are excited to bring more sustainable solutions to our customers and together create a better world."
Origin is expanding its relationships with international partners such as South Korean industrial conglomerate Hyosung Advanced Materials Corp. and Thailand-based SCG Packaging PLC.
Origin's first commercial manufacturing plant was completed in Sarnia, Ontario, Canada this year. It's still ramping up for production.
Origin has long been backed by users of plastic materials, including Mitsubishi Group, Nestle SA, Danone SA and PepsiCo (NYSE: PEP), all of which are potential customers for Origin’s zero-carbon PET for industrial goods and packaging.
As of the third quarter, Origin already had more than $8 billion in manufacturing capacity reservations for its product over the next decade.
Origin is also in the process of developing its second manufacturing plant in Louisiana. That plant is estimated to be a $1.1 billion investment.
