Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, has announced a capital injection into Shanghai Re-mall Environmental Protection New Material, a recycler of post-consumer (PCR) packaging waste in China.
This move is aimed at bolstering the production of transparent recycled polypropylene (rPP), a material crucial for manufacturing new products.
Re-mall, known for its PCR PP, is addressing the plastic recycling industry's challenges, including contamination and high processing costs.
With its proprietary technique, Re-mall produces highly transparent pellets from post-consumer food packaging waste, which are then used by various blue-chip companies in products ranging from storage solutions to textiles.
The investment from Ingka will enable Re-mall to expand its recycling capacity and innovate new products.
Located in Shanghai, with a strategic production facility in Jiangxi province, Re-mall benefits from proximity to significant plastic waste streams, enhancing its operational efficiency.
Ingka Group circular investments head Lukas Visser 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.”
Ingka Group's circular investment portfolio, established in 2017, targets materials with a high carbon footprint and lacking recycling infrastructure. The portfolio's goal is to develop profitable businesses that reduce carbon dioxide equivalent emissions and increase the availability of recycled materials.
This investment complements Ingka's minority holding in Morssinkhof Rymoplast, a European plastics recycler.
Re-mall CEO Zhu Kuan said: “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.”
