BASF and Red Avenue New Materials Group collaborate to produce certified compostable co-polyester (PBAT) in China

BASF and Red Avenue New Materials Group have signed a joint agreement that grants Red Avenue New Materials Group the license to produce and sell certified compostable aliphaticaromatic co-polyester (PBAT) according to high BASF quality standards.

For that purpose, Red Avenue New Materials Group will build a 60,000 metric tons PBAT plant in Shanghai, using BASF`s process technology in exchange for the access to raw material from this plant which BASF will sell as ecoflex^®. Production at the new plant will start in 2022 and supply the market of biopolymers.

The global market for certified compostable and bio-based plastics is expected to grow by around 15 percent per year. With upcoming new laws and regulations in a lot of countries enforcing the use of compostable materials in packaging, agricultural mulch films and bag applications, the positive market development is expected to continue. “Our successful bio-polyester ecoflex^® and the innovative ecovio^® are already giving us significant participation in this growing market. The additional available PBAT capacities will substantially strengthen our position,” says Olivier Ubrich, head of BASF’s global business unit Specialty Polymers. “Due to Red Avenue’s commitment and network to develop the Chinese market, their strategically interesting location and their long-lasting good relationship with BASF, we have identified Red Avenue as our preferred partner. The cooperation will allow us to meet our customers’ needs even more effectively and will increase our delivery flexibility.”

Adhering to its development concept of "Materials Make The Planet Better", Red Avenue New Materials Group has established the corporate vision of "Promoting The Sustainable Development of The New Materials Industry in An Innovative And Responsible Manner." Zhou Jianhui, President of Red Avenue New Materials Group, says: "As a company with strong social responsibilities, we are committed to providing our best help to our upstream and downstream green industry chains, as well as to solving the global environmental challenges. We are honored in cooperating with BASF to deploy cutting-edge new materials with innovative manufacturing technology. With rapidly growing business opportunities for advanced materials especially in the internet, for example by new consumer behavior, we will work together to develop the PBAT market in China and promote the development of the new materials’ industry."

The BASF biopolymer ecoflex^® was introduced into the market in 1998 and is certified compostable in accordance with DIN EN 13432 and ASTM D6400. It is used as a blend with other renewable raw materials to compound ecovio^®, BASF’s certified compostable biopolymer. The renewable raw material content means that ecovio^® is also partly bio-based. Typical applications for ecovio^® are organic waste bags, cling film, fruit and vegetable bags, as well as agricultural mulch films and food packaging applications. Studies show the advantages of ecovio^® for production, packaging and shelf life as well as for the waste collection of food. These advantages are based on the material’s certified biodegradability in industrial and home composting as well as in soil: Food waste is reduced, nutrients are returned to the soil by means of greater volumes of compost and the accumulation of plastic in soil is avoided, thus closing the nutrient cycle to a Circular Economy.