Ingka Investments, the investment arm of Ingka Group, has announced its first circular economy investment in China with a growth capital injection into Shanghai-based Re-mall, a leading recycler of post-consumer packaging waste.
© Ingka
Lukas Visser, Head of Circular Investments at Ingka Group.
Re-mall specialises in producing premium-grade, transparent recycled polypropylene (rPP) from post-consumer food packaging waste using proprietary technology. This material is applied in products including storage boxes, tableware, toys, cosmetics packaging, and woven textile products, and is used by many blue-chip companies worldwide.
The investment reflects Ingka's commitment to "support the transition towards a circular economy by investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials." China, as one of the world's largest plastic markets, is seen by Ingka as playing "a pivotal role in finding circular solutions to tackle waste."
Lukas Visser, Head of Circular Investments at Ingka Group, said:
'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.'
Pontus Erntell, President & Chief Sustainability Officer at IKEA China, added:
'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.'
Re-mall's operations include a production facility in Jiangxi province, strategically positioned to access plastic waste streams from major urban centres such as Guangzhou and Shanghai. The funding will help expand recycling capacity and support new product development.
ZHU Kuan, CEO of Re-mall, welcomed the partnership:
'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.'
Ingka Group established its circular investment portfolio in 2017 to focus on high carbon footprint materials with limited recycling infrastructure, particularly those relevant to IKEA's retail operations. The goal is to grow profitable businesses that "avoid millions of tonnes of CO2e and increase the availability of recycled material on the market."
This deal complements Ingka's existing stake in Morssinkhof Rymoplast, a European plastics recycling company. It reinforces Ingka's strategy of using strategic investments to strengthen the supply chain for recycled materials while reducing environmental impact, a mission that resonates strongly with Europe's design, interiors, and manufacturing industries seeking sustainable sourcing solutions.
More information:
Ingka (Ikea)
www.ingka.com
