When people think of circular economy innovation, they often picture tech-driven startups or companies in Europe or Silicon Valley. But in the Philippines, a homegrown brand has been leading the charge in sustainable product innovation: Uratex, the country’s largest foam and mattress manufacturer. Under the leadership of Managing Director Peachy Cheng-Medina, Uratex has quietly built a track record in material efficiency, upcycling, and sustainability-driven R&D.
In an exclusive interview with Financial Adviser PH, Cheng-Medina shared how Uratex is embedding circularity into its core operations—and how this approach is reshaping both its products and its purpose.
A Legacy Rooted in Value-for-Money and Stewardship
Uratex, founded by Cheng-Medina’s late father, has always been grounded in practical innovation. “Our founders didn’t finish college,” Cheng-Medina told Financial Adviser PH. “But they believed that education, continuous improvement, and making the most of what you have could transform lives. That belief has carried into how we treat materials, waste, and innovation.”
This philosophy made Uratex an early adopter of lean manufacturing. Influenced by its long-time relationship with Japanese automotive firms, Uratex adopted the practice of identifying and minimizing the “7 wastes” within a production system. That mindset became the foundation for its transition into a more circular model.
AKAP: Optimizing Foam and Fabric to the Last Inch
One of Uratex’s most impactful initiatives is the AKAP Program (Advocacy on Kalikasan and Pagpapahalaga), which focuses on maximizing raw material usage across all operations. Through this program, Uratex has:
Streamlined foam and fabric cutting processes
Reduced off-cuts and scraps
Improved yield performance beyond industry standards
“We are angry at waste,” Cheng-Medina shared. “Every extra inch of foam or fabric that ends up in the trash is a missed opportunity. Our goal is to turn that missed opportunity into a product, a value, or a solution.”
AKAP has become more than just a production practice; it’s now a company-wide ethos that influences how product development teams think, how supply chain teams manage inventories, and how sales teams communicate value to customers.
The Upcycled Product Program: Giving Waste a New Life
In parallel with AKAP, Uratex also launched its Upcycled Product Program, which turns post-industrial and post-consumer waste into functional and marketable products. Some examples include:
Rebonded foam made from offcuts, now used in mattresses and sports mats
Rehibla fabric, a yarn derived from recycled PET bottles
Trill Seave mattress made with ocean-bound plastics
EnviroBlock chairs and GentleBounce pillows produced from repurposed materials
This program goes beyond aesthetics. Each product is rigorously tested to meet industry standards for durability, comfort, and safety. “We don’t use recycled materials just for the sake of it,” Cheng-Medina emphasized. “They must meet or exceed the quality our customers expect.”
Educated Consumers, Elevated Expectations
One of the more interesting shifts that Uratex has seen in recent years is in consumer behavior. According to Cheng-Medina, “There used to be a stigma around recycled products. The word ‘recycled’ meant second-rate. But now, customers are asking for sustainable options—and they’re willing to pay for it, as long as the quality holds.”
Uratex’s sustainability-driven product lines have seen strong demand, particularly among younger consumers, institutional buyers like hotels, and environmentally conscious retailers.
To reinforce this shift, the company invests in consumer education campaigns, emphasizing the environmental and social value of its upcycled products.
R&D That Balances Sustainability and Science
Behind the scenes, Uratex’s research and development efforts play a critical role in its circular economy strategy. The company sends its R&D teams to global trade fairs and collaborates with both local and international material experts.
“You need to be very aggressive with product trials,” said Cheng-Medina. “There are more bad recycled materials than good ones in the market. It takes a lot of discipline and technical knowledge to separate what’s viable from what’s not.”
Uratex maintains strict standards when incorporating post-consumer materials. If a recycled input compromises comfort, safety, or longevity, it’s rejected. The company invests in testing protocols and quality control to ensure recycled doesn’t mean reduced performance.
Culture That Drives Circularity
Uratex’s shift to circularity isn’t just driven by technology or consumer trends—it’s embedded in the company’s culture.
The idea that “nothing should go to waste” is now part of how employees approach problem-solving. Teams across production, marketing, logistics, and even HR participate in “small group activities” and “quality circles” that focus on process improvements and sustainable solutions.
“The best ideas don’t always come from top management,” Cheng-Medina said. “Many of our innovations started with a frontline employee asking: what can we do with this leftover material?”
These bottom-up innovations are then nurtured, developed, and scaled through the company’s innovation platforms.
Expanding the Circular Ecosystem
Uratex’s role in the circular economy extends beyond its factory walls. The company has been a strong supporter of the Extended Producer Responsibility (EPR) Law, which encourages businesses to be responsible for the waste their products generate.
Through EPR partnerships, Uratex has successfully diverted over 500 tons of plastic waste in just two years, collaborating with partners like Republic Cement to turn collected waste into energy.
Uratex also shares its learnings with the broader business community through industry forums, sustainability reports, and collaborations with academic institutions.
Circular Design, Circular Impact
Circularity doesn’t stop with materials. Uratex is now exploring circular product design, especially for end-of-life mattress recycling. Emerging global technologies are being evaluated to recover raw materials from discarded foam products, and Cheng-Medina hopes to pilot one in the Philippines soon.
This focus aligns with the company’s long-term sustainability vision: to achieve net zero emissions by 2050. With 366 trucks in its fleet, Uratex is also closely watching electric vehicle advancements as part of its broader environmental roadmap.
Advice to Other Businesses: Start Where You Are
When asked what advice she would give to other companies exploring circular economy practices, Cheng-Medina offered this:
“Don’t wait for perfection. Start with what you can control—your raw materials, your production processes, your people. Educate your team and measure what matters.”
She added, “The transition to circularity is not just a strategy. It’s a mindset. Once your people are aligned with that purpose, innovation becomes organic.”
The Future is Circular
Uratex’s story is a compelling example of how a traditional Filipino company can evolve into a sustainability pioneer without losing sight of its core values. By rethinking waste as opportunity and empowering employees to innovate, the company is not only future-proofing its business but also paving the way for others to follow.
As Cheng-Medina told Financial Adviser PH, “The future of manufacturing in the Philippines must be circular. If we want to build a better tomorrow, it starts with how we make things today.”
