Manufacturing sustainable lifestyle products and creating decent jobs go hand in hand at Pactics

Siem Reap is a popular tourist destination located in northwestern Cambodia. It is best known as the gateway to the ancient temple complex of Angkor Wat, which is one of the most iconic and important archaeological sites in Southeast Asia. On the outskirts of the tourist town, the factory of Pactics is located where more than 500 people work daily on making travel bags and other lifestyle products like accessories for luxury eyewear brands.

In total, Pactics produces approximately 30 million high quality products each year. The company possesses the SA8000 certification since 2014, one of the world’s leading social certification programs focusing on fair and decent employment.

The products are being manufactured in four open, breezy and light buildings designed by the acclaimed Stuart Cochlin Architects. Making it, despite the warm and humid climate year-round, comfortable to work in. Solar panels power LED lights that come on at night and a water filtration system provides drinking water to all employees.

Pactics was founded in 2004. As it states on their website: ‘We became manufacturers because we wanted to do right by the people making our products. Historically, we’ve produced for the world’s biggest luxury brands. Today, our team across Asia, Europe and North America is focused on sharing that expertise with all the smaller, mission-driven brands whose values align with ours. We do right by our people.’

Childcare for example is an important focus for the company with eighty percent of the employees being female. That is why Pactics opened an onsite creche to allow women to breastfeed. There is free daycare for all employees’ children between three months of age up to 21 months. After that, the childcare gets subsidized by the company.

There’s also a first aid room staffed by a nurse, a subsidized canteen, and Pactics pays half of the cost of motorbike helmets for all staff. And employees go through a week-long training program, learning about safety, labor rights, sexual harassment, and hygiene.

During the company history Invest International has supported Pactics Group Holding B.V. with financing [at the start via the PSI project by Dutch Enterprise Agency RVO]. The latest financing solution is the € 3.0 million term loan facility, funded via Dutch Good Growth Fund (DGGF). A fund Invest International manages on behalf of the Ministry of Foreign Affairs.

The proceeds will be used for the expansion of Pactic’s production facilities in Siem Reap, Cambodia. Through the expansion plans, the number of employees in Siem Reap will increase to approximately 1000, from which 800 will be women.

Founder and Chairman Piet Holten of Pactics: “Currently, Pactics employs around 500 employees worldwide. Through the expansion plans, the number of employees in Siem Reap will increase to approximately 1000, from which 800 will be women. Meaning a large positive contribution to SDG 8 and SDG 5. We are extremely pleased with the financing from Invest International that makes this urgently needed expansion possible.  We tried several Dutch banks for financing but the only thing we got was a cup of coffee and a polite decline.”

Pactics has also introduced a waterless dyeing process, thereby significantly reducing the water consumption, chemicals, and energy. Each kilogram of fabric produced with Waterless Dye saves 134 liters of water. No chemicals are used in the dyeing process.

“Besides this, the electricity used in the factory is generated by hydropower from the grid and solar panels. All in all, this means a relevant contribution to SDGs 12 and 13”, adds Piet Holten.

And: “The burden of sustainability in travel products is higher on the producer than the consumer. In fact, the only way to create a truly sustainable travel and luggage industry is for producers to take responsibility for their impact on the environment and society at large.”