Saitex reveals the secrets of its success

With operations in Los Angeles and Vietnam, Saitex’s industry-leading circular manufacturing model now produces over 20,000 pairs of jeans in a single day, working with brands such as Madewell, G-Star Raw, Everland and Polo Ralph Lauren. FashionNetwork.com talks to founder Sanjeev Bahl about the firm’s latest developments and California’s new regulations on textile waste.

FashionNetwork: Why are you recognized as the cleanest denim factory in the world?

Sanjeev Bahl: Sustainability isn’t just a box we check—it’s embedded in everything we do. We recycle 98% of the water we use, harness solar energy to cover 25% of our power needs, and ensure zero discharge of harmful chemicals. On top of that, we’re turning waste into opportunity by recycling denim fibers back into new garments. It’s not just about being the cleanest factory; it’s about redefining what responsible production looks like for the entire industry. We collaborate with global brands to push these innovations further, proving that sustainability and scale can go hand in hand.

FNW : What is the story of the factory in Vietnam? How did it grow to become a benchmark for fashion companies?

S.B: When we started in 2001, the goal was simple—build a facility that represented the future of responsible manufacturing. Since then, we’ve pushed the boundaries by investing in green chemistry, renewable energy, and cutting-edge water recycling technologies to create a truly closed-loop system. Fair Trade, LEED, and B Corp, —aren’t just certifications; they reflect our deep commitment to both the environment and humanity. Today, Saitex Vietnam is more than a factory and mill; it’s a model for brands around the world who want to embrace circularity and carbon-neutral production.

FNW: Why did you set up a new factory in the US?

S.B.: Expanding to the U.S., and specifically Los Angeles, was about much more than just bringing manufacturing back. We saw a huge opportunity to create a hub that delivers speed-to-market while maintaining the highest sustainability standards. The U.S. is a key player in the push for circular fashion, and being close to our partners here lets us innovate faster, respond to market trends more efficiently, and cut down on waste. It was also about bringing jobs back to the West Coast with a focus on responsible, scalable onshore production. This is the future of manufacturing—sustainable, agile, and local.

FNW: Have any brands stopped production in Vietnam and relocated to Los Angeles?

S.B: It’s more about balancing proximity and sustainability. Vietnam remains a key part of our operations, especially for larger-scale production, but our Los Angeles factory offers agility and the ability to produce with minimal environmental impact right here in the United States. 

FNW: Your factory in Los Angeles has been designed as the factory of the future. What are the specific features of the machines and technologies used in the factory?

S.B: A factory of the future is one that can respond to the fast-paced changes in fashion by being agile, adaptable, and efficient. We’ve built a system that can quickly scale up or down production in response to demand, reducing the risks of overproduction and waste. Our on-demand manufacturing model allows brands to test new designs in small batches and bring them to market quickly without compromising sustainability. We use automation and AI, we have real-time data tracking across every step of the production process. This gives us the ability to make informed decisions on the fly, adjusting our production schedules, materials, and processes as trends evolve. Everything is monitored in real-time through our digital platform, ensuring we optimize resource use and minimize waste at every stage. Our factories are designed not just to reduce our environmental impact but to actively lead the way in flexible, sustainable manufacturing for the future of fashion.

FNW: Can you tell us more about Saitex’s Speed to Market and SAI Digital?

S.B: Speed to Market is our on-demand production model focused on small batch production. It enables brands to produce only what is needed, reducing overproduction and waste. This is complemented by SAI Digital, our digital arm, which offers advanced e-commerce and data solutions to support circular commerce specifically. Together, they form a system that not only delivers products more efficiently but also promotes sustainable and transparent practices with our brands from design to distribution.

FNW: Among the technologies on offer, the one-step wash machines connect to a water recycling system. What is it exactly? How do you manage to recycle water and reduce waste at that point?

S.B: Our one-step wash technology integrates water recycling at the core of the process. Water used in denim washing is treated, purified, and reused multiple times, reducing the need for fresh water by 98%. This system is a critical element in minimizing waste and aligns with our broader goal of operating a closed-loop manufacturing process where nothing goes to waste.

FNW: Can you give us an idea of the water savings achieved over a year’s production?

S.B: On average, we save approximately 500 million liters of water annually across our operations. This is equivalent to the water consumption of 25,000 households in a year. Our water recycling technologies, combined with our innovative manufacturing processes, ensure that every drop is used efficiently.

FNW: What exactly do SB 707 regulations impose on Californian fashion brands today? And what are the consequences?

S.B: SB 707 requires California producers to take responsibility for the end-of-life management of their textiles, meaning brands must engage in textile collection, recycling, and reuse systems. At Saitex, we’re already leading the way with our closed-loop systems and circular manufacturing model, which align seamlessly with these regulations, helping brands meet these new obligations. One of our key solutions is Stella Pop, which up-cycles textile waste into functional products such as interior panels, furniture, and garment trims. This not only reduces waste but also demonstrates how brands can transform discarded materials into purposeful, innovative items.

FNW: What new developments are you working on today to be even more efficient?

S.B: We are constantly innovating. Right now, we’re focusing on expanding our use of recycled fabrics, developing new biodegradable materials, and enhancing our digital infrastructure for even more precise resource management. These developments will help us reduce waste further and scale circular production globally.

FNW: Are you still planning to develop a factory in New York?

S.B: We are exploring the possibility of opening a new facility in New York, but for now, our focus is on optimizing our Los Angeles and Vietnam operations. As we continue to grow, expanding to other regions will always be guided by our sustainability goals and the demand for responsible manufacturing closer to key markets.