ATC Plastics has agreed to purchase sustainable carbon-negative carbon black from Origin Materials for use in various plastic manufacturing processes
WEST SACRAMENTO, Calif. & INDIANAPOLIS--(BUSINESS WIRE)--Jul. 27, 2022--
Origin Materials, Inc. (“Origin” or “Origin Materials”) (NASDAQ: ORGN, ORGNW), the world’s leading carbon negative materials company, and ATC Plastics LLC (“ATC Plastics”), a leading global manufacturer of black color concentrates, today announced a strategic partnership to bring sustainable carbon-negative carbon black made using Origin Materials’ patented technology platform to the plastics Industry.
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As part of the partnership, ATC Plastics has agreed to purchase Origin’s sustainable carbon black. Origin’s carbon black, made from Origin’s HTC, is a versatile, 100% bio-content filler and pigment. Like traditional petroleum-based carbon black, it can be used in a wide range of applications including belts and hoses, mechanical rubber goods, tires, plastic masterbatch, and toners.
The partnership will target applications like plastic masterbatch, an additive used to color plastic, for corrugated pipe and plastic manufacturing processes such as blow molding, injection molding, pipe extrusion, compounding, plastic film and sheet, and rotational molding. The agreement between Origin and ATC Plastics includes co-development of carbon black for plastic corrugated pipe, plastic extrusion, and molding applications.
Origin’s carbon black is produced from sustainable wood residues rather than petroleum, reducing carbon emissions and fossil resource consumption and enabling the production of carbon-negative products.
The global market for carbon black is projected to reach $26 billion by 2025, expanding at 6% CAGR, according to Grand View Research, Inc. Plastics is anticipated to be the fastest-growing application for carbon black from 2019 to 2025 resulting from its use in the production of high-performance products.
“We are thrilled to partner with ATC Plastics, a trusted partner and distributor to global brands with a strong track record of manufacturing excellence,” said Rich Riley, Co-CEO of Origin Materials. “ATC Plastics’ manufacturing capabilities and expansive customer network can enable broad adoption of Origin’s patented technology platform and help drive the ‘once in a planet’ shift to sustainable materials, including renewable carbon black across the plastic compounding industry.”
“ATC Plastics is excited to work closely with Origin Materials in the development of a sustainable and renewable carbon black option,” said Tom Stevning, Managing Partner at ATC Plastics LLC. “The industry is ready for something like this and it comes at an opportune time when carbon black is in very tight supply.”
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, 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 ATC Plastics
ATC Plastics is a large producer of black color concentrate for use in many plastic applications. With a very large plant running multiple lines and over fifty silos located in Houston, Texas, ATC Plastics is able to supply products globally into a variety of markets.
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, our ability to develop additional high-value products beyond our core CMF platform and ability to realize the anticipated benefits of the partnership 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; disruptions and other impacts to Origin Materials’ business as a result of the COVID-19 pandemic and other global health or economic crises; changes in customer demand; and those factors discussed in the Quarterly Report on Form 10-Q filed with the SEC on May 9, 2022 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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Source: Origin Materials, Inc.