Ingka Investments, the investment arm of Ingka Group – the largest IKEA retailer – has announced a growth capital investment in Re-mall (Shanghai Re-mall Environmental Protection New Material Co., Ltd.), a Chinese recycler specialising in post-consumer packaging waste. The company employs a proprietary process to produce transparent recycled polypropylene (rPP) for use in a range of new products.
The plastics recycling sector continues to grapple with significant challenges, including contamination from food residues and labels, material quality degradation after multiple recycling cycles, high processing costs, and fluctuating demand for recycled materials. Re-mall has sought to address these barriers, gaining recognition in China for producing premium-grade recycled polypropylene through advanced technology and innovation. It is among the few global suppliers capable of manufacturing highly transparent rPP pellets from post-consumer food packaging waste at scale.
The recycled material is used in products such as storage containers, tableware, toys, cosmetics packaging, and woven textiles, with blue-chip companies among its clients. The firm is also developing closed-loop recycling solutions with value chain partners.
The investment marks Ingka Investments’ first in China under its Circular Investment portfolio, which targets companies developing technology or expanding capacity to prevent waste or supply recycled materials. China, as one of the world’s largest plastics markets, plays a critical role in advancing circular solutions.
“Re-mall’s strong supplier network and partnerships with leading Chinese food delivery services are already enabling large-scale impact in the local recycling market,” said Lukas Visser, Head of Circular Investments at Ingka Group. “By investing in Re-mall, we want to amplify this impact to address a global plastic waste challenge and contribute to the circular economy transition.”
Pontus Erntell, President and Chief Sustainability Officer at IKEA China, added: “This investment demonstrates our long-term commitment in China. To meet our customers’ needs for generations to come, we must take a lead in accelerating the circular economy beyond IKEA. The scale and innovation capabilities of the Chinese market present significant opportunities for this transformation.”
Headquartered in Shanghai, Re-mall operates a production facility in Jiangxi province, strategically positioned to source plastic waste from major cities such as Guangzhou and Shanghai, located in the Yangtze River Delta and Pearl River Delta regions. The funding will support expansion of its recycling capacity and the development of new products.
“We are delighted to welcome Ingka Investments as a strategic partner in our mission to accelerate the circular economy in plastics,” said ZHU Kuan, CEO of Re-mall. “Together, we aim to transform plastic waste into valuable resources, contributing to a cleaner planet and a more responsible future.”
Ingka Group launched its circular investment portfolio in 2017, focusing on materials with a high carbon footprint, limited recycling infrastructure, and relevance to its retail operations. The portfolio aims to grow profitable businesses that reduce millions of tonnes of CO₂e emissions and increase market availability of recycled materials. This latest investment complements Ingka Investments’ minority stake in European plastics recycler Morssinkhof Rymoplast.
