Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, today announces a growth capital injection in Re-mall (Shanghai Re-mall Environmental Protection New Material Co., Ltd.), the China-based recycler of post-consumer packaging waste, which uses a proprietary technique and process to produce transparent recycled polypropylene (“rPP”) for use in new products.
The plastic recycling industry faces numerous challenges, which Re-mall is working to overcome. 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.
Within China, Re-mall is recognised for producing premium-grade post-consumer recycled polypropylene driven by technology and innovation, and is actively exploring, and building, high-quality closed-loop solutions with their value chain partners. They are also one of the only global suppliers producing highly transparent pellets from post-consumer food packaging waste at scale. The finished materials are used in applications such as 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.
The investment is part of 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. It also marks the first Chinese investment for Ingka Investments in its Circular Investment portfolio. China is one of the largest plastic markets in the world and occupies a pivotal role in finding circular solutions to tackle waste.
Lukas Visser, Head of Circular Investments at Ingka Group
“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.”
“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,” said Pontus Erntell, President & Chief Sustainability Officer at IKEA China.
Re-mall is headquartered in Shanghai, China, and 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.
“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,” said ZHU Kuan, CEO of Re-mall.
Ingka Group established its circular investment portfolio in 2017. It focuses on materials with a high carbon footprint, for which recycling infrastructure is lacking and which are relevant for our retail operations. Its aim is to grow profitable businesses that avoid millions of tonnes of CO2e and increase the availability of recycled material on the market.
This investment complements Ingka Investments’ existing minority holding in Morssinkhof Rymoplast, a European plastics recycling company also helping to limit the carbon footprint through plastic recycling.
About Ingka Investments
Ingka Investments is the investment arm of Ingka Group, the largest IKEA retailer. They invest in assets, manage companies, and operate strategic businesses to preserve and create value for Ingka Group and IKEA – now, and for generations to come. Taking a long-term approach, they responsibly invest across six strategic areas: forestland, renewable energy, real estate, circular, financial markets, and business acquisitions and venture investments. Ingka Investments supports the transition to a circular economy by investing in companies that are growing recycling infrastructure to close the gap between capacity and demand. Further information on Ingka Investments: www.ingka.com/what-we-do/ingka-investments/
About Ingka Group
With IKEA retail operations in 31 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more on www.Ingka.com
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