Chinese recycling tech startup Re-Mall (睿莫环保) has secured new funding from Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, with participation from Japanese chemical firm Asahi Kasei.

The company said it will use the funds for research, capacity expansion, and expanding its market outreach, though financial details were not shared.

Founded in 2015, Re-Mall specializes in high-value recycling of plastics such as polypropylene and polyethylene. The company uses a physical recycling process to turn discarded food packaging into recycled plastic pellets, and said its materials have obtained food-grade certifications from the US FDA and the EU’s RoHS.

Re-Mall’s products are sold mainly to overseas markets, including Europe, the US, and Japan.

🔗 Source: 36Kr

🧠 Food for thought

1️⃣ Chinese recycling startups face competitive advantages through international certification standards

Re-Mall’s FDA and EU RoHS certifications position it strategically in a fragmented Chinese recycling market that lacks consistent quality standards.

Over 80% of China’s recycling companies are small and medium-sized enterprises with low investment in research and development, creating significant competitive gaps1.

The sector suffers from “chaotic disposal systems and intense competition among small firms” with inadequate sorting and processing equipment, making certified companies like Re-Mall more attractive to international buyers1.

Re-Mall’s ability to produce recycled materials “with properties close to those of virgin materials” and secure international food-grade certifications demonstrates the premium that quality-focused recycling companies can command in this fragmented landscape.

2️⃣ China’s waste import restrictions created domestic recycling opportunities

China’s shift from being the world’s largest waste importer to developing domestic recycling capabilities created significant market opportunities for local companies.

For decades, China accepted 70% of the world’s plastic waste, but Operation National Sword in 2017 banned imports of various recyclable materials to protect the environment2.

This policy reversal, combined with China’s food delivery boom creating massive polypropylene waste streams, positioned domestic recycling companies like Re-Mall to serve both local waste processing needs and export markets.

China now recycles over 371 million tons of scrap annually, valued at over CNY 1.3 trillion ($180.7 billion), demonstrating the substantial domestic market that emerged from this policy shift1.