Origin Materials seeks partners to overcome tariff and equipment delays, aiming to accelerate global rollout of its innovative sustainable PET bottle caps.
Origin Materials Inc., a company focused on sustainable material solutions, has begun a comprehensive strategic review to accelerate the production of its newly developed PET bottle caps. This move comes after recent challenges, including increased tariffs and equipment delays, disrupted the company’s plans to scale up manufacturing at the pace initially envisioned. By actively exploring partnerships and other strategic options, Origin aims to overcome these hurdles and bring its innovative product to a broader market more quickly.
The West Sacramento-based company had originally planned to expand testing across several production lines known as CapFormer lines, specifically lines two through eight. However, these tests are now facing delays ranging from 30 to 90 days. The primary reasons behind these setbacks include manufacturing challenges and difficulties in securing essential subcomponents. Much of this slowdown has been linked to new European import tariffs, which have sharply increased costs and created procurement complications. At present, the tariffs stand at 15 percent for imports from European Union countries and a steep 39 percent for those from Switzerland. These tariff pressures have made sourcing critical materials more expensive and logistically challenging, adding to the operational strain on Origin.
In light of these issues, Origin has engaged RBC Capital Markets to assist in identifying potential partners across manufacturing, marketing, and distribution. By leveraging external expertise and strategic collaborations, the company hopes to ensure smoother operations, reduced risks, and an accelerated path to market readiness for its PET cap production. Such partnerships could provide not only the technical and logistical support required but also broader distribution channels and customer reach.
Despite the production setbacks, Origin’s leadership has remained optimistic about the long-term significance of its PET cap innovation. CEO John Bissell described the launch of Origin’s 1881 PET cap, specifically designed for noncarbonated water, as a “major inflection point” for both the company and the wider packaging industry. Unlike traditional bottle caps, these PET caps aim to provide a more sustainable and recyclable option, addressing growing concerns about single-use plastics and environmental impact.
The product has already gained traction in the market. Power Hydration, a California-based company, has begun selling bottled water fitted with Origin’s 1881 PET caps. Additionally, Berlin Packaging, a leading global supplier of packaging solutions, has signed on as Origin’s first named customer. Berlin Packaging will not only purchase but also distribute the PET caps globally, significantly expanding the product’s reach and market visibility.
As Origin works through its immediate operational challenges, the company sees these early market entries as proof of demand and potential. By building the right alliances and resolving supply chain disruptions, Origin aims to position its PET cap as a new industry standard for sustainability in beverage packaging.
