IKEA's affiliate, Ingka, pours funds into China-based plastic recycling company, Re-mall
Ingka Investments Announces First China Investment in Plastic Waste Recycler Re-mall
Ingka Investments, the investment arm of Ingka Group, has made its first investment in China, injecting growth capital into Re-mall, a leading recycler of post-consumer packaging waste. This move is part of Ingka's broader strategy to contribute to the circular economy by reducing waste and increasing the supply of recycled materials.
Purpose
The investment in Re-mall is aimed at accelerating the transition towards a circular economy, enhancing the company's capabilities in recycling post-consumer packaging waste, and reducing global plastic waste. The capital injection will help Re-mall increase its recycling capacity and develop new products, particularly in the production of premium-grade recycled polypropylene (rPP) used in various consumer products.
Focus
Re-mall's expertise in producing transparent recycled polypropylene from post-consumer food packaging waste is a key focus area. This technology allows for the creation of high-quality recycled materials for use in storage boxes, tableware, toys, cosmetics packaging, and woven textiles.
The collaboration between Ingka and Re-mall is expected to transform plastic waste into valuable resources. Re-mall's strong network with leading Chinese food delivery service providers will be leveraged to create impact at scale in the local recycling market, benefiting from China's pivotal role in addressing global waste management challenges.
Long-term Commitment in China
The investment signifies Ingka's long-term commitment to the Chinese market and its role in accelerating the circular economy transition beyond Ikea's operations. Pontus Erntell, President and Chief Sustainability Officer at IKEA China, stated that this investment demonstrates Ingka's long-term commitment in China.
Re-mall is recognized in China for producing premium-grade post-consumer rPP, and is one of the only global suppliers producing highly transparent pellets from post-consumer food packaging waste at scale. The funding from Ingka Investments is expected to help expand Re-mall's recycling capacity, address a global plastic waste problem, and contribute to a cleaner planet and a more responsible future.
[1] Ingka Investments. (2021). Ingka Investments announces growth capital injection in China-based Re-mall. Retrieved from https://www.ingka.com/news/2021/ingka-investments-announces-growth-capital-injection-in-china-based-remall
[2] Ingka Group. (2017). Ingka Group launches Circular Investments. Retrieved from https://www.ingka.com/news/2017/ingka-group-launches-circular-investments
[3] Ingka Group. (2021). Ingka Group announces €1 billion investment in companies enabling growth in recycling infrastructure. Retrieved from https://www.ingka.com/news/2021/ingka-group-announces-e1-billion-investment-in-companies-enabling-growth-in-recycling-infrastructure
- To support the transition towards a sustainable future, Ingka Investments, the financial arm of Ingka Group, is investing in technology-driven environmental science companies, like Re-mall, to strengthen their waste recycling capabilities, specifically in the production of premium-grade recycled polypropylene (rPP), especially in areas like storage, tableware, toys, cosmetics packaging, and textiles.
- As part of their broader investment strategy in the circular economy, Ingka Investments has also shown interest in funding businesses that leverage finance to address global environmental issues, such as the plastic waste problem, which can lead to the production of valuable resources and contribute to a cleaner planet and a more responsible future.
