IKEA Partners with New Zealand Company for New Plastic Waste-Derived Adhesive

Adhesives, Industry News,

Inter IKEA has signed a development and access agreement with Auckland, New Zealand-based NILO, a deep-tech startup company that has developed and patented a plastic waste-derived adhesive for use in the production of wood-based boards. The investment aligns with the company’s sustainability commitments, which includes switching from fossil-based to bio-based glues for board production. 

As part of this agreement, Inter IKEA Development B.V. has acquired a 12.5% stake in NILO and Andrew McIntosh, innovation partnership leader at IKEA Innovation Ventures, has joined NILO’s board of directors.

“IKEA is committed to our strategy of being People and Planet Positive. The investment in NILO shows our commitment to working with innovative startups that can support and help accelerate the IKEA material innovation agenda. NILO’s approach to the creation of this adhesive shows real potential, and we are hopeful the collaboration will be mutually beneficial” said McIntosh. “The performance and physical qualities show promise and we want to support NILO and help develop the adhesive with a mutual ambition to get it into scaled trials. From our position as a shareholder we can support the path forward and look forward to working closely with the management and board of NILO.”

The world faces a non-degradable plastic waste challenge, as 350 million tons of plastic waste are generated every year. Only 9% of plastic is recycled, leaving the rest in landfills, incinerators, and waterways. NILO’s team of chemists and engineers have created technology that repurposes this plastic waste.

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Source: Adhesives Magazine