Ingka Investments Backs China’s Re-mall to Expand High-Quality Plastic Recycling Capacity

Ingka Investments Backs China’s Re-mall to Expand High-Quality Plastic Recycling Capacity

(IN BRIEF) Ingka Investments, part of Ingka Group—the largest IKEA retailer—has made its first Chinese investment in the circular economy with growth capital for Re-mall, a leading recycler of post-consumer packaging waste in China. Using proprietary technology, Re-mall produces transparent recycled polypropylene for use in products like tableware, toys, and storage containers. The investment will boost Re-mall’s recycling capacity and product development, supporting China’s transition toward a circular economy. Ingka’s decision reflects its global strategy to back companies developing recycling technology and infrastructure, complementing its existing European plastics recycling investments.

(PRESS RELEASE) LEIDEN, 11-Aug-2025 — /EuropaWire/ — Ingka Investments, the investment arm of Ingka Group and the largest IKEA retailer, has announced a growth capital investment in Re-mall (Shanghai Re-mall Environmental Protection New Material Co., Ltd.), a China-based leader in post-consumer packaging waste recycling. Re-mall uses a proprietary process to produce transparent recycled polypropylene (rPP) that can be used in new, high-quality products.

The global plastic recycling sector faces multiple obstacles, including contamination from food residues and labels, quality loss after repeated recycling, high processing costs, and unpredictable demand for recycled materials. Re-mall is tackling these challenges through innovation and technology, establishing itself within China as a premier producer of post-consumer rPP. It is among the few global suppliers capable of producing highly transparent pellets from food packaging waste at industrial scale. These materials are used in products such as tableware, toys, storage containers, cosmetics packaging, and woven textiles, and are already integrated into the supply chains of major international brands.

This marks Ingka Investments’ first circular economy investment in China, a country with one of the largest plastic markets in the world and a critical role in solving global waste challenges. The investment aligns with Ingka’s strategy of supporting companies that develop new technologies or expand capacity to reduce waste and increase recycled material availability.

Lukas Visser, Head of Circular Investments at Ingka Group, noted: “Re-mall’s strong supplier network and partnerships with leading Chinese food delivery platforms are already creating measurable impact in the local recycling market. By investing, we can help amplify this impact, address the global plastic waste problem, and accelerate the shift toward a circular economy.”

Pontus Erntell, President & Chief Sustainability Officer at IKEA China, added: “This investment underscores our long-term commitment to China. We have both the responsibility and opportunity to drive the circular economy forward—not only for IKEA but across the market. China’s scale and innovation capacity make it a key player in this transformation.”

Re-mall is headquartered in Shanghai and operates a strategically located production facility in Jiangxi province, giving it access to major waste streams from large cities such as Guangzhou and Shanghai in the Yangtze and Pearl River Delta economic zones. The capital injection will enable the company to expand recycling capacity and develop new products.

ZHU Kuan, CEO of Re-mall, commented: “We welcome Ingka Investments as a strategic partner in our mission to scale sustainable plastic solutions globally. This collaboration represents a key milestone in transforming plastic waste into valuable resources for a cleaner and more responsible future.”

Ingka Group’s circular investment portfolio, established in 2017, targets materials with high carbon footprints, limited recycling infrastructure, and relevance to IKEA’s retail operations. The portfolio aims to grow profitable businesses that avoid millions of tonnes of CO2e while increasing recycled material availability. This new investment complements Ingka’s existing stake in European plastics recycler Morssinkhof Rymoplast, furthering its efforts to reduce the environmental impact of plastics worldwide.

About Ingka Investments

Ingka Investments is the investment arm of Ingka Group, the largest IKEA retailer. They invest in assets, manage companies, and operate strategic businesses to preserve and create value for Ingka Group and IKEA – now, and for generations to come. Taking a long-term approach, they responsibly invest across six strategic areas: forestland, renewable energy, real estate, circular, financial markets, and business acquisitions and venture investments. Ingka Investments supports the transition to a circular economy by investing in companies that are growing recycling infrastructure to close the gap between capacity and demand. Further information on Ingka Investments: www.ingka.com/what-we-do/ingka-investments/

About Ingka Group

With IKEA retail operations in 31 markets, Ingka Group is the largest IKEA retailer and represents about 90% of IKEA retail sales. It is a strategic partner to develop and innovate the IKEA business and help define common IKEA strategies. Ingka Group owns and operates IKEA sales channels under franchise agreements with Inter IKEA Systems B.V. It has three business areas: IKEA Retail, Ingka Investments and Ingka Centres. Read more on www.Ingka.com

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SOURCE: Ingka Holding B.V