Ingka Group invests in Chinese plastic recycler Re-mall
Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, has announced a growth capital investment in Re-mall, a Shanghai-based recycler of post-consumer packaging waste. The company uses a proprietary process to produce transparent recycled polypropylene (rPP) for use in new products.
The plastic recycling sector faces obstacles such as contamination from food residues, declining quality over multiple recycling cycles, high processing costs and fluctuating demand. Re-mall is seen as a leader in addressing these challenges, producing premium-grade recycled polypropylene and developing closed-loop solutions with partners across its value chain. It is also among the few global suppliers capable of producing highly transparent pellets from post-consumer food packaging waste at scale. Its materials are used in products ranging from tableware and toys to cosmetics packaging and woven textiles, with blue-chip companies among its customers.
Ingka said the investment reflects its commitment to advancing a circular economy by supporting companies developing new technology or expanding recycling capacity. The deal is its first circular economy investment in China, one of the world’s largest plastic markets.
Lukas Visser, Head of Circular Investments at Ingka Group, noted that Re-mall’s partnerships with leading Chinese food delivery providers were already enabling large-scale impact in local recycling. He said the investment was intended to build on that momentum and contribute to solving the global plastic waste problem.
Pontus Erntell, President and Chief Sustainability Officer at IKEA China, said the move underlined Ingka’s long-term commitment to China, adding that the scale and innovation capacity of the market created opportunities to accelerate the transition to a circular economy.
Re-mall, headquartered in Shanghai with a production facility in Jiangxi province, benefits from access to plastic waste streams from major urban centres in the Yangtze and Pearl River Delta economic zones. The new funding will support an increase in recycling capacity and the development of new products.
Zhu Kuan, Chief Executive of Re-mall, described Ingka’s backing as a milestone that would help scale sustainable solutions globally and turn plastic waste into valuable resources.
Ingka’s circular investment portfolio, established in 2017, targets materials with high carbon footprints and limited recycling infrastructure. It already holds a minority stake in Dutch recycler Morssinkhof Rymoplast, complementing its new partnership in China.
(PRA)SUBSCRIBE to Get the Latest Updates from PRA Click Here»
