How Ingka is Contributing to the Circular Economy
Ingka Investments, the investment arm of Ingka Group, which is the largest IKEA retailer, is making a growth capital injection into Re-mall (Shanghai Re-mall Environmental Protection New Material Co., Ltd.).
Based in China, Re-mall is a recycler of post-consumer packaging waste, using proprietary techniques and processes to produce transparent recycled polypropylene to be used in new products.
Lukas Visser, Head of Circular Investments at Ingka Group, says: "Re-mall's strong supplier network and partnerships with leading Chinese food delivery service providers are already allowing them to create impact at scale for the local recycling market.
"By investing in Re-mall, we want to amplify this impact to help address a global plastic waste problem and contribute to the circular economy transition."
Innovative solutions to industry challenges
With the plastic recycling industry facing a range of challenges, Re-mall is finding solutions to overcome them.
These include contamination from food residues and labels, quality degradation of the material across recycling cycles, high processing costs and volatile market demand for recycled plastics, which hinder effective uptake.
Pontus Erntell, President & Chief Sustainability Officer at IKEA China, says: "This investment by Ingka Investments demonstrates our long-term commitment in China.
"To meet our customers' needs for generations to come, we have both the responsibility and the opportunity to take a lead in accelerating the circular economy beyond IKEA, and the scale and innovation capabilities here in the Chinese market create significant opportunities for this transformation."
In China, Re-mall has been recognised for its ability to create premium-grade post-consumer recycled polypropylene which is driven by technology and innovation – and is actively exploring and building high-quality closed-loop solutions alongside its partners across the value chain.
Re-mall is also one of the only global suppliers producing the highly-transparent pellets from post-consumer food packaging waste at scale.
High-value products
These materials are then harnessed by applications including storage boxes and containers, tableware, toys, cosmetics packaging and woven textile products.
Re-mall's materials are used in the products of many blue-chip companies.
Ingka is aiding the move towards a circular economy by investing in companies which are creating technology or increasing capacity to stop waste or give new life to recycled materials.
It is represents the first Chinese investment for Ingka Investments in its Circular Investment portfolio. China is one of the largest plastic markets in the world, and holds a vital role in finding circular solutions to eliminate waste.
Based in Shanghai, Re-mall operates a production facility strategically located in Jiangxi province, allowing for access to plastic waste streams from large cities, like Guangzhou and Shanghai, both in the Yangtze River Delta and the Pearl River Delta economic zones.
The investment will support Re-mall in increasing its recycling capacity and developing new products.
ZHU Kuan, CEO of Re-mall, adds: "We are happy to welcome Ingka Investments as a strategic partner in our mission to accelerate the circular economy in plastics.
"This collaboration marks a significant milestone in our journey to scale sustainable solutions globally. Together, we aim to transform plastic waste into valuable resources, contributing to a cleaner planet and a more responsible future."
Since launching its circular investment portfolio in 2017, Ingka Group has targeted high-carbon materials where recycling infrastructure remains inadequate and operational alignment exists.
The strategy builds profitable ventures designed to prevent millions of tonnes of CO2e emissions whilst boosting recycled material availability across markets.
The investment enhances Ingka Investments' current minority stake in European plastics recycler Morssinkhof Rymoplast, which similarly reduces carbon impact through advanced plastic recycling processes.