Under the joint agreement, Red Avenue New Materials Group will be responsible for producing PBAT according to high BASF quality standards. The company will build a PBAT plant in Shanghai, China, with an annual capacity of 60,000 metric tonnes of PBAT, using BASF’s process technology. This would be in exchange for the access to raw material from the plant, which BASF will sell as ecoflex. Production at the new plant is set to commence in 2022 and will supply the market of biopolymers.
