Ingka Investments, Ikea‘s investment vehicle, is investing in a Chinese circular project for the first time. To encourage more sustainable plastics, the furniture giant is investing in Re-mall, which recycles consumer packagings.
“Commitment for the long term”
Re-mall develops transparent recycled polypropylene, intended for use in new products. Lukas Visser, Head of Circular Investments at Ingka Group, explains: “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.”
The exact size of the investment is unknown, but the capital injection is large enough to confirme the Swedish chain’s long-term commitment in China – even beyond its own stores, Ikea China’s President Pontus Erntell said in a press release. “We have both the responsibility and the opportunity to take a lead in accelerating the circular economy”, Erntell added.
Re-mall’s manufacturing location in Jiangxi province is strategically located between the huge conurbations of the Pearl River Delta and the Yangtze River Delta – home to hundreds of millions of people. With the additional capital, the company plans to expand both processing capacity and product offerings. CEO Zhu Kuan sees Ingka as an important strategic partner: “Together, we aim to transform plastic waste into valuable resources, contributing to a cleaner planet and a more responsible future.”
