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PENFABRIC’s Journey Towards Responsible Resource Management with OEKO-TEX® STeP

05.01.26

PENFABRIC, an OEKO-TEX® STeP Level 3 certified manufacturer (the highest certification level) since 2014, was interviewed about its journey towards more responsible resource management. PENFABRIC is the largest advanced textile manufacturer in Malaysia, with integrated operations including weaving, dyeing (piece- and yarn-dyed), printing, laminating and fabric finishing. The company achieved 88% in the STeP Environmental Performance Module, reflecting its strong commitment to environmental management. Since its initial certification more than a decade ago, the facility has transitioned from oil to cleaner gas energy, introduced cogeneration technology and expanded its solar installations to reduce emissions. PENFABRIC also supports circular economy principles by converting sludge into raw materials for the construction industry. In this interview, PENFABRIC shares how STeP has supported its environmental performance efforts and continuous improvement journey.

Solar panel penfabric

Preserving water, using renewable energies & establishing a proper waste management are crucial for greater sustainability. Can you share some of the initiatives or programs you have implemented to protect and support these areas?

Water preservation, energy conservation and waste management activities are built into our daily operational procedures. We have implemented initiatives such as reusing water at our production facility without compromising quality, recycling and reusing chemicals such as PVA and caustic soda, implementation of a cogeneration system for the generation of steam and electricity, utilising solar energy for electricity and eliminating landfilling by converting scheduled waste into alternative raw materials for other industries.

Wastewater Treatment Plant

What advice would you give to other facilities striving to improve their environmental performance efforts within the OEKO-TEX® STeP framework?

We recommend facilities to review the assessment questions across all six STeP modules to identify the gaps between the requirements and their actual performance. Based on these findings, facilities should set measurable goals aligned with each module.

Additionally, they should engage employees through training and implement strong monitoring systems for energy, water, chemicals, waste and wastewater to support progress towards these goals.

OEKO-TEX®plays a key role in promoting sustainability and using resources efficiently. How has their guidance and certification helped you to improve your resources usage?

The OEKO-TEX® STANDARD 100 certification has helped PENFABRIC to ensure that only safe chemicals are used in our production. The OEKO-TEX® STeP certification has also supported us in improving our environmental management in the areas of energy, water, wastewater, waste and air emissions.

The certification has inspired us to involve employees in our new processes, implement sustainable production practices and pursue continuous improvement.

From your experience, how does the OEKO-TEX® STeP certification increased your credibility with clients and what was its impact on your business operations?

The OEKO-TEX® standards have strengthened our image in terms of transparency and our commitment to responsible production.

OEKO-TEX® STeP supports our commitment towards compliance with global standards in environmental, social and chemical management and underlines our credibility. That helped us attract sustainability-focused customers who know and trust the OEKO-TEX®
certifications.

For other facilities looking to achieve a similar high score in environmental performance, which measures had the most significant impact for you?

For us, the key actions for achieving high environmental performance under the OEKO-TEX® STeP framework were adopting water and energy-efficient technologies, implementing strict chemical management aligned with ZDHC guidelines and integrating sustainability practices into our daily operations.

What measures do you plan to implement in the future to keep the highest standard?

We are committed to maintaining top environmental standards, so PENFABRIC will keep investing in clean technologies like solar energy. We also plan to expand our closed-loop water recycling systems and introduce AI to help optimise how we use resources. We want to explore circular economy initiatives and build on our sustainability practices through regular training and teamwork. This way, we can keep improving and stay aligned with OEKO-TEX® STeP standards.

Interview partners

Name: Katsuya Okajima
Job Title:
Managing Director

Name:
Jaya Paul Dhas
Job Title:
Safety & Compliance Manager

About the PENFABRIC

PENFABRIC is a leading vertically integrated textile manufacturer based in Malaysia, with operations covering weaving, dyeing (piece- and yarn-dyed), printing, laminating and fabric finishing. Established in 1973, the company supplies high-quality woven and finished fabrics to global apparel markets and is recognised for its technical expertise, innovation and commitment to responsible production. PENFABRIC has held OEKO-TEX® STANDARD 100 certification for more than 30 years, with ongoing support from TESTEX. This long-term certification reflects the company’s continuous focus on chemical safety, environmental performance and continuous improvement across its operations.

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