On April 16, 2021, Red Avenue issued its annual report of 2020. The report indicates that the company  adheres to the "one body, two wings" development strategy. The"one body" is for special materials for automobile / tire, and the "two wings" are layout of new business electronic and materials, degradable materials.  The three major business sectors coordinated development.

On May, 2020, BASF signed an agreement granting licence to China-based Red Avenue New Materials Group for the production and sale of certified compostable aliphatic-aromatic co-polyester (PBAT). Red Avenue 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.

Ecoflex, which was introduced into the market in 1998, is used as a blend with other renewable raw materials to compound BASF’s certified compostable biopolymer ecovio. Typical applications for the partly bio-based ecovio are organic waste bags, cling film, fruit and vegetable bags, as well as agricultural mulch films and food packaging applications.

Source 1: Institute of biodegradable materials

Source 2: https://www.chemicals-technology.com/news/basf-license-red-avenue-co-polyester/