Recycled plastic technology company expands overseas and secures investment from Ingka Group, with most products supplied to leading brands in Europe and the United States | Exclusive report by Hardcore Krypton
Author | Lin Qingqing
Editor | Peng Xiaoqiu
Yingke Krypton learned that the recycled plastic enterprise "Remo Environmental Protection" recently completed a new round of financing, led by Ingka Investments (an independent investment branch under the world's largest IKEA retailer, Ingka Group), with existing shareholder Asahi Kasei continuing to participate in the investment. Potential Capital served as the exclusive financial advisor for this round of financing. The funds from this round will be mainly used for technological R & D, capacity expansion, and market development.
"Remo Environmental Protection" was established in 2015 and is a technology - driven high - tech enterprise in the recycled plastic industry. Based on the full - industrial - chain model of "recycling - regeneration - scenario application", the company focuses on the high - value recycling of polypropylene (PP) and polyethylene (PE). Its core is to achieve "same - level regeneration" through physical recycling methods. By researching and developing processes such as recycling and sorting (e.g., automatic sorting equipment for polyolefin food packaging waste), deep cleaning, and melt filtration, the performance of recycled pellets can be made close to that of virgin materials, and it has obtained certifications such as the US FDA food - grade and EU RoHS.
The raw materials mainly rely on the large - scale recycling of food packaging waste, and a digital quality traceability system has been established. The company serves strict scenarios such as food packaging, automotive parts, and high - end textiles for global brand customers, and actively explores and constructs high - quality closed - loop solutions.
The global pressure to control plastic pollution continues to increase, and about 70% of waste plastics are ultimately landfilled or incinerated. Driven by the "carbon neutrality" goals of various countries and ESG compliance requirements, policies and market rules are being adjusted at an accelerated pace. The "14th Five - Year Plan" in the EU, the United States, Japan, and China have all set clear targets for the proportion of recycled materials in plastic packaging. For example, many countries require the proportion to reach 30% by 2030. At the same time, large consumer goods companies such as IKEA have set goals to only purchase renewable or recycled materials by 2030, and brands such as Coca - Cola and Nike have also announced targets for using 25% - 50% recycled materials.
According to the prediction of YH Research, the global market size of recycled waste plastic products will reach $174.42 billion (approximately RMB 1.26 trillion) by 2030. China accounts for about 60% of the global recycled plastic industry. In particular, the scale of PP lunch box waste generated by the takeaway economy is the largest in the world.
However, this industry has long been dominated by small, scattered, chaotic, and polluting workshop - style production. The processing process has high pollution, the performance of recycled materials is unstable, and there is a lack of safety certifications. As a result, the products are mostly used in low - end fields, and the market is highly competitive at low prices, making it difficult to meet the rigid demand of international brands for high - quality, traceable recycled materials. Especially for food - grade recycled PP, the domestic production rate is extremely low, and the technical threshold and supply - chain bottlenecks are obvious.
Aiming at this market gap, "Remo Environmental Protection" chose the physical recycling method as its technical path. At the recycling end, the company has developed automatic sorting equipment for polyolefin food packaging waste, combined with visual recognition and digital systems to improve sorting efficiency, and established raw material grading standards. In the processing stage, through processes such as deep cleaning, high - precision sorting, and melt filtration, it has solved the quality and safety problems of traditional recycled materials, such as low performance, unstable color, and high impurity content.
Its core breakthrough lies in the ability to convert polyolefin food packaging waste into recycled plastics with performance close to that of virgin plastics and that have passed safety certifications such as the US FDA food - grade and EU RoHS. This enables it to be successfully applied in fields with high requirements for material performance and safety, such as food - contact packaging, high - end toys, automotive parts, and non - woven fabrics, achieving "same - level regeneration" applications, different from the common downgraded use model in the industry.
The products of "Remo Environmental Protection" have entered the global brand supply chains of multiple industries, and most of the products are sold to overseas markets (Europe, the United States, and Japan) with strict quality requirements. Relying on its production base in Jiangxi, by exporting technology and standards to ensure raw material supply, its annual production capacity has reached the ten - thousand - ton level. Facing the challenges of the full - industrial - chain upgrade in the industry, "Remo Environmental Protection" is trying to export technology, exploring capacity building through overseas cooperation, and plans to set up branches in Europe and the United States to be closer to customers.
In terms of the team, Zhu Kuan, the founder and CEO of "Remo Environmental Protection", has 8 years of marketing management experience in the petrochemical industry and 10 years of experience in the plastic recycling industry. Xiong Wei, the co - founder and CTO, holds a doctorate in polymer science from the Chinese Academy of Sciences and has a technical background in multinational chemical companies. In addition, the team of "Remo Environmental Protection" has led and participated in the formulation of several national standards for recycled plastics in China.
Investors' Views:
Lukas Visser, the head of circular investments at Ingka Group, said: "Remo Environmental Protection has had a large - scale impact on the domestic recycling market in China through its strong supplier network and partnerships with leading Chinese takeaway service platforms. We hope to further expand this influence through this investment, help solve the global plastic waste problem, and promote the transformation of the circular economy."
Pontus Erntell, the President and Chief Sustainability Officer of IKEA China, said: "This move by Ingka Investments demonstrates our long - term commitment to the Chinese market. To continuously meet the needs of current and future generations of consumers, we have both the responsibility and the opportunity to lead the accelerated transformation of the circular economy outside the IKEA system. The scale advantage and innovation vitality of the Chinese market also provide great opportunities for this transformation."