Ingka Invests In China’s Re-Mall For Plastic Recycling

Ingka Investments, the investment division of Ingka Group, the largest IKEA retailer, has announced its first circular economy investment in China. This marks an important step in its global strategy to promote sustainable solutions. The company has invested in Shanghai-based Re-mall, which specializes in recycling post-consumer packaging waste into high-quality transparent recycled polypropylene (rPP). This investment aims to tackle one of the biggest environmental challenges today: the increasing issue of plastic waste.

China is home to one of the largest plastic markets in the world and plays a critical role in developing circular waste solutions. Even though it is a major producer and consumer of plastics, the country faces significant hurdles in recycling. These include contamination, quality degradation over multiple cycles, high processing costs, and changing demand for recycled materials. Re-mall’s unique process directly addresses these problems, allowing for the production of transparent rPP pellets from post-consumer food packaging waste on a large scale. These materials can be used in various products, such as storage containers, tableware, cosmetics packaging, toys, and textiles, with several well-known companies as clients.

Re-mall is one of the few global suppliers capable of producing transparent rPP from food packaging waste in large quantities. The company has established strong partnerships with leading Chinese food delivery services, providing a reliable source of post-consumer packaging waste. Its facility in Jiangxi province is strategically placed to collect plastic waste from major urban areas like Guangzhou and Shanghai. This ensures efficient sourcing and large-scale production.

Lukas Visser, Head of Circular Investments at Ingka Group, highlighted the importance of the partnership: “Re-mall’s strong supplier network and relationships with leading Chinese food delivery services are already allowing them to make a significant impact on the local recycling market. By investing in Re-mall, we aim to enhance this impact and help solve the global plastic waste problem while supporting the transition to a circular economy.”

The investment will be used to increase Re-mall’s recycling capacity and create new products, helping the company meet the rising demand for sustainable materials. This reflects Ingka Investments’ broader focus on circular investments, established in 2017 to support businesses working on high-carbon materials with limited recycling capacity. By backing Re-mall, Ingka is not only promoting recycling in China but also reinforcing the availability of high-quality recycled materials worldwide.

Pontus Erntell, President and Chief Sustainability Officer at IKEA China, noted that this investment aligns with IKEA’s long-term vision for China: “Ingka Investments’ move shows our commitment to the country. To meet our customers’ needs for the future, we have both the responsibility and the chance to lead the shift towards a circular economy, and the opportunities for innovation in the Chinese market are significant.”

For Re-mall, this partnership marks a milestone in its goal to transform plastic recycling. Zhu Kuan, CEO of Re-mall, welcomed Ingka Investments as a strategic partner: “This collaboration is a key moment in our quest to scale sustainable solutions globally. Together, we aim to turn plastic waste into valuable resources, contributing to a cleaner planet and a more responsible future.”

Ingka’s investment in China complements its existing interest in the European plastics recycler Morssinkhof Rymoplast. This highlights Ingka's commitment to increasing the supply of recycled materials while lowering carbon emissions on a global scale. By expanding its investments to include innovative recycling companies in crucial markets, Ingka is positioning itself as a leader in the shift towards a circular economy.

The circular economy model focuses on eliminating waste, maintaining products in use, and regenerating natural systems. This approach is gaining traction worldwide as governments, companies, and consumers seek ways to address environmental damage. Investments like the one in Re-mall are essential for overcoming technical and market barriers in recycling, especially in countries with high consumption rates and complex waste management challenges like China.

As awareness of the negative impacts of plastic waste on the environment and human health grows, the demand for recycled materials is expected to rise. However, the supply of high-quality recycled plastics remains limited due to processing challenges with contaminated and degraded materials. Re-mall’s innovative methods tackle these challenges, producing recycled polypropylene with the clarity and quality necessary for a variety of uses, thereby broadening the scope for recycled materials.

As the global plastic waste crisis persists, partnerships between large international investors and local innovators will be vital in expanding solutions. Ingka Investments' entry into the Chinese recycling market reflects a commitment to environmental responsibility and acknowledgment of the potential in sustainable materials. By utilizing Re-mall’s local expertise and network and its own global reach, Ingka aims to create a widespread impact that benefits both the environment and the economy.

In the long term, such efforts could greatly reduce plastic pollution, lower greenhouse gas emissions, and promote a circular economy. For China, this investment introduces advanced recycling technologies and international partnerships that can enhance its local recycling capabilities. For Ingka, it solidifies its role as more than a retailer; it is a proactive participant in building a sustainable future.