Ingka Group, Ikea’s largest retail operator, has taken a stake in recycling specialist Re-mall as part of its broader strategy to cut waste, and boost recycled material supply. Terms of the investment were not disclosed.

Shanghai-headquartered Re-mall produces premium-grade post-consumer recycled polypropylene and is among the few global suppliers capable of manufacturing transparent pellets from post-consumer food packaging waste at scale.

These materials are used in products such as storage boxes, tableware, toys, cosmetics packaging and woven textiles, and are supplied to a range of blue-chip companies.

“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,” said Lukas Visser, head of circular investments at Ingka Group

“By investing in Re-mall, we want to amplify this impact to help address the global plastic waste problem and contribute to the circular economy transition.”

Re-mall operates a production facility in Jiangxi province. Its location gives it access to plastic waste streams from major cities such as Guangzhou and Shanghai in the Yangtze River Delta and Pearl River Delta economic zones.

The company said the investment will help increase its recycling capacity and develop new products.

“We are happy 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.

“This collaboration marks a significant milestone in our journey to scale sustainable solutions globally. Together, we aim to transform plastic waste into valuable resources, contributing to a cleaner planet and a more responsible future.”

Ingka Group operates Ikea retail stores in 31 markets, accounting for about 90 per cent of Ikea’s global retail sales.