Ingka Investments, the investment subsidiary of the Ingka Group and the largest IKEA retailer worldwide, is investing in China for the first time as part of its Circular Investments programme. The company is investing in the recycler Re-mall, which uses its own technology to produce transparent recycled polypropylene (rPP) for new products from used packaging.
In China, Re-mall is regarded as a pioneer in the high-quality recycling of plastic waste from the consumer sector. The company produces transparent rPP pellets on a large scale, which are used in storage boxes, crockery, toys, cosmetics packaging and textiles, for example. In doing so, Re-mall addresses key challenges in the industry such as contamination from food scraps and labels, quality losses during multiple recycling and high process costs.
First circular investment in China
The investment is Ingka Investments’ first step into the Chinese market in the circular economy sector. China is the world's largest plastics market and plays a key role in the development of closed-loop recycling. According to Lukas Visser, Head of Circular Investments at Ingka Group, Re-mall's strong supplier network is already having an impact on the local recycling market, which is to be strengthened by the investment.
Pontus Erntell, President & Chief Sustainability Officer at IKEA China, explained that the commitment emphasises the company's long-term responsibility in China and opens up opportunities to advance the circular economy beyond IKEA.
Re-mall CEO Zhu Kuan also welcomed the collaboration. They want to work together to drive change and turn plastic waste into valuable resources.
Expansion of capacities planned
Headquartered in Shanghai, Re-mall operates a plant in Jiangxi province. The site enables the development of waste streams from metropolises such as Guangzhou and Shanghai. The investment will be used to expand recycling capacities and develop new products.
Ingka Group launched its circular investment portfolio in 2017. In addition to the new investment in China, the Group also holds shares in the European plastics recycler Morssinkhof Rymoplast. The aim is to support companies that reduce CO₂ emissions and increase the supply of recycled materials on the market, according to the statement.
Source: Ingka
