Ingka's $1bn Recycling Plant: A Sustainability Investment
Following the Group's announcement in January, Ingka Investments, had added a major new plastics recycling facility in Lommel, Belgium.
Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, is intensifying its actions to tackle waste and address climate change challenges.
With an ambitious plan to allocate €1bn (US$1.15bn) toward enterprises enhancing recycling infrastructure, this initiative points to a substantial advancement in the retailer’s sustainability mission and dedication to the circular economy.
The global waste crisis
Presently, our global economy utilises 75% more natural resources than the Earth can replenish, creating an expansive amount of waste. However, only a fraction of less than 20% of this waste sees recycling.
Understanding the necessity for transformation, Ingka Investments focuses its financial resources on innovations that transform end-of-life products into secondary raw materials.
The establishment of a major new plastics recycling facility in Lommel, Belgium, overseen by Morssinkhof-Rymoplast and supported through Ingka Investments, continues the €1bn (US$1.15bn) circular investment initialised in January to elevate recycling infrastructure. Enhancing the recycling of end-of-life products will yield a rise in secondary raw materials.
This venture is not limited to environmental benefits but also addresses economic factors, by recognising scalable enterprises capable of financial success while simultaneously reducing emissions and resource consumption.
Circular investments
In 2017, Ingka Group commenced its Circular Investments initiative, concentrating on impactful domains such as plastics, mattresses, textiles, wood and food waste.
The goal is to nurture profitable businesses that eliminate millions of tonnes of CO₂e and multiply recycled material availability within the marketplace.
Since its launch, Circular Investments' portfolio entities have processed around 2.7 million tonnes of materials, evading more than 9.4 million tonnes of CO₂e.
A notable case is RetourMatras, a Dutch recycler that annually handles 2.5 million mattresses across facilities stationed in the Netherlands, England and France. It formulates RePoliol, an eco-friendly alternative to fossil-based foam materials, which IKEA incorporates into its mattress and upholstery lines.
Morssinkhof-Rymoplast, a distinguished recycler of post-consumer plastics, has elevated its capacity to 515,000 tonnes per annum, operating in Belgium, Germany, Poland and the Netherlands. The company has recently initiated the development of two novel Belgian establishments, incorporating a flagship plant in Lommel.
An additional illustration is Next Generation Group (NGG), offering advanced recycling solutions for plastics and organic waste, enhancing innovation and efficiency in the circular shift.
Belgium's circularity progress
Belgium's recycling evolution has been both swift and profound. Within a five-year period, domestic recycling rates for household plastic packaging have escalated from 9% to 69%, with expectations to surpass 75% within the upcoming year. Ingka Investments plays a pivotal role in this transformation.
The Lommel facility, created in collaboration with Fost Plus, will address household packaging waste like shampoo bottles and yoghurt containers. “This ground-breaking marks a circularity milestone for households in Belgium," says Nathalie Van Edom, Sustainability Manager at IKEA Belgium.
"At Ingka Group, we already use recycled household plastics produced by Morssinkhof-Rymoplast in products like our HÅLLBAR waste sorting bins, helping give materials a second life.
"Now, thanks to this collaboration, we’re taking it a step further, and our Belgian customers will see the direct impact of their recycling efforts with products made from their own butter tubs returning to their homes.”
The facility anticipates the creation of 65 new employment opportunities, engaging in recycling activities aligned with the national PMD system (Plastic, Metal and Drink cartons).
Evy Morssinkhof, Strategic Business Developer at Morssinkhof-Rymoplast, notes: "Despite the challenges facing the recycling industry, we remain fully committed to our mission: transforming plastic waste into high-quality materials that can be used again and again."
Peter van der Poel, Managing Director of Ingka Investments, underscores the overarching mission: "Our €1bn ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy to go beyond our own operations.
"What would help us go further is if legislation was stronger at prioritising recycling over incineration and landfilling. We also welcome eco-design regulations to encourage the demand for these recycled materials, and we are actively collaborating with relevant authorities and other stakeholders to address these issues."
A long-term vision
For Ingka Investments, transitioning towards a circular economy resonates as a strategic long-term objective.
“To future-proof our business, we want to invest in financially and environmentally resilient companies. When a product’s life at home ends, Circular Investments begins,” shares Lukas Visser, Circular Investments Portfolio Manager, Ingka Investments.
"Ingka Investments is committed to transitioning towards a circular economy and retaining the value of materials. For us, that means investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials."
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