Neste and IKEA of Sweden announce partnership to develop bio-based plastics
Finland-headed oil refiner and renewable fuel producer Neste Oyj and Sweden-headed furniture major IKEA of Sweden have announced a partnership to deliver renewable, bio-based plastics. The partnership includes the production of plastics and other materials utilizing Neste's renewable solutions in polymer production. The partnership combines IKEA's commitment to reduce their dependence on virgin fossil-based materials and Neste's expertise in renewable solutions.
According to a joint statement, the companies aim to produce plastics and other materials that are used today but instead replacing virgin fossil feedstock with renewable or recycled waste and residue raw materials. The companies will work with a number of partners in the supply chain. Partners are provided with an opportunity to address the growing market for bio-based products while utilizing their existing production assets.
We are very pleased to form a partnership with IKEA. IKEA’s commitment to initiate a change in the industry is an extremely important step in redefining how materials will be made and how raw materials are used in the near future. IKEA and Neste, together with partners, can enable the production of bio-based plastics that are produced from waste and residues of the customers’ preference and choice, can be produced with the existing production assets, are fully compatible with customers’ needs, and are recyclable in the current plastics pool. We are proud to work with IKEA on the initiative, said Tuomas Hyyryläinen, Senior Vice Presdient, Strategy and New Ventures at Neste.
The companies invite others to join the initiative. Neste and IKEA’s target is to produce the first proof-of-concept during 2017. Furthermore, the companies expect to widen their cooperation towards new, novel technologies and other opportunities.
IKEA wants to contribute to a transformational change in the industry and to the development of plastics made from recycled or renewable sources. In line with our goals, we are moving away from virgin fossil-based plastic materials in favour of plastic produced from more sustainable recycled or renewable sources such as waste and residues, not using palm oil and it’s derivatives as feedstock, said Lena Pripp-Kovac, Sustainability Manager, at IKEA of Sweden.
IKEA Group has 340 stores in 28 countries. In addition, there are around 50 stores run by franchisees outside the IKEA Group. IKEA’s long-term ambition is for the plastic material used in their home furnishing products to be renewable or recycled material. The company is starting with their home furnishing plastic products, representing about 40 percent of the total plastic volume used in the IKEA range.
We believe that working with Neste will open up an important pathway towards industrializing the production of plastics from a more sustainable feedstock, said Camilla Rööst, Material and Innovation Development Manager, at IKEA.