Famed furniture retailer Ikea is investing in a New Zealand-based company that has created technology to create adhesives from waste plastics.
Sweden-based Ikea is taking a 12.5-percent stake in Nilo Ltd. of Auckland and will have a seat on the company's board.
Nilo's product is designed to replace urea formaldehyde as an adhesive used to make wood products such as plywood, particle board and medium-density fiberboard.
"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 Andrew McIntosh, innovation partnership leader for Ikea and the new Nilo board member, in a statement.
Along with finding a use for plastics currently being discarded, Nilo said the company's adhesive can replace the high carbon footprint of urea formaldehyde, which is also a polymer.
Glen Willoughby is CEO at Nilo.
"Our team has worked tirelessly on this, and to have our technology recognized by one of the world's leading firms with deep expertise in the wood-based board market provides huge validation of what Nilo has created," he said in a statement. "The knowledge and expertise ... will bring will help Nilo progress our technology immensely."
Nilo indicated the company has a vision to create a range of adhesives from plastics waste for different industrial applications.
Other financial backers in Nilo include Icehouse Ventures and K1W1 Ltd., both investment firms, and Clare, a philanthropic investment and giving organization. They are all based in New Zealand. SDG Impact Japan Inc. of Tokyo, which investments in sustainabiltiy efforts, also is a backer.