West Sacramento-based Origin Materials to sell assets, CEO to step down
The West Sacramento-based company, Origin Materials, is selling its technology for recyclable bottle caps as the company winds down operations, according to a company news release published Friday afternoon.
In an effort to save money, the company is also letting go more of its workforce, the news release read. CEO John Bissell will also step down, but will remain on Origin’s Board of Directors.
COO Matt Plavan, who will serve as interim CEO, said in the news release that the company’s attempts “to source additional capital have been unsuccessful,” and that the company’s “strategic review process” has not provided “greater realizable value to shareholders than the sale of the technology.”
“Therefore, today we are announcing a reduction in force to enable Origin to maximize shareholder value through the orderly sale of capital and technology assets,” Plavan said.
Origin Materials did not respond to a request for comment by The Sacramento Bee.
During Origin’s quarterly conference call, which included investors and analysts, the company said it was taking a longer time than expected to increase sales for its PET plastic bottle caps, according to the Sacramento Business Journal. As a result, the company looked to combining with other businesses.
In February, Origin Materials cut 35% of its workforce as part of its restructuring plan, according to past Bee reporting. Approximately 100 people were employed at its West Sacramento site at the time of the announcement. The company also trimmed its operating expenses from $40 million to $29 million.
Friday’s news release stated affected employees would be expected to leave by the end of the month.
The clean-tech startup was founded in 2008 and went public in 2021. The company specializes in making bottle capital from polyethylene terephthalate, also known as PET. Origin Materials has described its PET caps as a better environmental alternative to commercial caps.
