BASF announces deal to produce certified compostable PBAT in China

BASF and China’s Red Avenue New Materials Group have signed a joint agreement that grants the latter the license to produce and sell certified compostable aliphatic-aromatic co-polyester, polybutylene adipate terephthalate (PBAT), meeting BASF’s quality standards.

For that purpose, Red Avenue New Materials Group will build a 60,000-tpa 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, its certified compostable and mostly bio-based polymer brand for film applications. Production at the new plant will start in 2022 and supply the market for biopolymers.

The global market for certified compostable and bio-based plastics is expected to grow by around 15% 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, BASF expects the market to develop further.

“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,” said Mr. Olivier Ubrich, head of BASF’s global business unit Speciality Polymers.

“With rapidly growing business opportunities for advanced materials, especially in the internet, for example by new consumer behaviour, we will work together to develop the PBAT market in China and promote the development of the new materials’ industry,” observed Mr. Zhou Jianhui, President, Red Avenue New Materials Group.

BASF’s ecoflex was introduced into the market in 1998 and 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 & vegetable bags, as well as agricultural mulch films and food packaging applications.