Ingka Investments boosts China’s Re-mall to advance circular economy

CHINA – Ingka Investments, the financial arm of Ingka Group, the largest IKEA retailer, has announced a substantial capital injection into Shanghai-based Re-mall Environmental Protection New Material. 

This strategic investment aims to enhance Re-mall’s production of transparent recycled polypropylene (rPP), a versatile material used in manufacturing sustainable products like storage containers, tableware, and textiles.

Re-mall has emerged as a leader in addressing the plastic recycling industry’s persistent challenges, such as contamination from food residues and high processing costs. 

According to industry experts, the company’s proprietary technology enables it to produce premium-grade, highly transparent rPP pellets from post-consumer food packaging waste at an industrial scale. 

These pellets are in demand by major global brands for their durability and aesthetic appeal in products ranging from cosmetics packaging to woven textiles.

“Re-mall’s robust supplier network and collaborations with leading Chinese food delivery platforms are already driving significant change in the local recycling market,” Lukas Visser, Head of Circular Investments at Ingka Group, said.

“By investing in Re-mall, we aim to amplify this impact, tackling the global plastic waste crisis and advancing the transition to a circular economy.”

Strategically located in Shanghai with a production facility in Jiangxi province, Re-mall benefits from access to major plastic waste streams in the Yangtze and Pearl River Delta regions. 

The new funding will support the expansion of its recycling capacity and the development of innovative products, further solidifying its role in sustainable material production.

 “We are thrilled to partner with Ingka Investments in our mission to scale sustainable plastic solutions globally,” Re-mall’s CEO, Zhu Kuan, added.

The investment aligns with Ingka Group’s circular investment portfolio, launched in 2017, which focuses on high-carbon-footprint materials with limited recycling infrastructure. 

The portfolio aims to foster profitable businesses that reduce carbon emissions while increasing the availability of recycled materials. 

The move complements Ingka’s existing stake in Morssinkhof Rymoplast, a European plastics recycler.

A recent report highlights that Ingka Group also opened an online store on China’s JD.com platform in August 2025, signalling its continued commitment to the Chinese market. 

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