Ingka US$1bn Investment Latest: European Recycle Plant Opens
Following the Group's announcement in January, Ingka Investments, had added a major new plastics recycling facility in Lommel, Belgium.
Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, is stepping up its efforts to combat waste and climate change.
With an ambition to invest €1bn (US$1.15bn) in companies advancing recycling infrastructure, the move signals a bold acceleration of the retailer’s sustainability strategy and commitment to the circular economy.
The global waste crisis
Today, the global economy consumes 75% more natural resources than the Earth can regenerate, generating vast amounts of waste.
Yet, less than 20% of that waste is recycled.
Recognising the urgent need for change, Ingka Investments is directing its funding towards solutions that convert end-of-life products into secondary raw materials.
The major new plastics recycling facility in Lommel, Belgium, operated by Morssinkhof-Rymoplast and backed through Ingka Investments follows January’s €1bn (US$1.15bn) circular investment to increase recycling infrastructure.
By investing in recycling more end-of-life products, there will be an increase of secondary raw materials.
The focus is not only environmental but economic – identifying scalable businesses that can thrive financially while reducing emissions and resource use.
Circular investments
Ingka Group launched its Circular Investments initiative in 2017, targeting high-impact sectors like plastics, mattresses, textiles, wood and food waste.
The aim is to grow profitable businesses that avoid millions of tonnes of CO₂e and increase the availability of recycled material on the market.
Since inception, portfolio companies under Circular Investments have recycled approximately 2.7 million tonnes of materials, avoiding more than 9.4 million tonnes of CO₂e.
For example, RetourMatras, a Netherlands-based recycler that processes 2.5 million mattresses annually across its facilities in the Netherlands, England and France.
It produces RePoliol, a sustainable alternative to fossil-based foam materials used in IKEA’s own mattress and upholstery lines.
Morssinkhof-Rymoplast, a leading recycler of post-consumer plastics, has doubled its capacity to 515,000 tonnes per year, with operations across Belgium, Germany, Poland and the Netherlands.
The company recently began construction of two new Belgian facilities, including a flagship site in Lommel.
Another example is Next Generation Group (NGG), which offers advanced technologies for recycling plastics and organic waste, bringing innovation and efficiency to the circular transition.
Belgium’s circularity progress
Belgium’s recycling journey has been swift and significant.
In just five years, domestic recycling of household plastic packaging has surged from 9% to 69% and is projected to exceed 75% by next year.
Ingka Investments is playing a key role in this transformation.
The Lommel facility, developed in partnership with Fost Plus, will process household packaging waste like shampoo bottles and yoghurt tubs.
“This groundbreaking marks a circularity milestone for households in Belgium,” says Nathalie Van Edom, Sustainability Manager at IKEA Belgium.
“At Ingka Group, we already use recycled household plastics produced by Morssinkhof-Rymoplast in products like our HÅLLBAR waste sorting bins, helping give materials a second life.
“Now, thanks to this collaboration, we’re taking it a step further and our Belgian customers will see the direct impact of their recycling efforts with products made from their own butter tubs returning to their homes.”
The plant is expected to create 65 new jobs and recycle waste collected through the national PMD system (Plastic, Metal, and Drink cartons).
Evy Morssinkhof, Strategic Business Developer at Morssinkhof-Rymoplast, says: “Despite the challenges facing the recycling industry, we remain fully committed to our mission: transforming plastic waste into high-quality materials that can be used again and again.”
Peter van der Poel, Managing Director of Ingka Investments, emphasises the broader mission: “Our €1bn ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy to go beyond our own operations.”
“What would help us go further is if legislation was stronger at prioritising recycling over incineration and landfilling…
“We also welcome eco-design regulations to encourage the demand for these recycled materials and we are actively collaborating with relevant authorities and other stakeholders to address these issues.”
A long-term vision
For Ingka Investments, transitioning to a circular economy is a long-term strategy.
“To future proof our business we want to invest in financially and environmentally resilient companies. When a product’s life at home ends, Circular Investments begins,” says Lukas Visser, Circular Investments Portfolio Manager, Ingka Investments.
“Ingka Investments is committed to transitioning towards a circular economy and retaining the value of materials.
“For us, that means investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials.”
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