Los Angeles-based sweatshop-free T-shirt manufacturer American Apparel has agreed a deal with Oklahoma-based recycling company, Environmental Textiles, to recycle all of its cutting and fibre scraps.

In a statement, American Apparel said it had found an environmental solution to disposing over 30,000 pounds a week of left-over cotton cuttings that would otherwise be dumped in landfill sites.

Environmental Textiles will now regenerate American Apparel's fabric scraps into high-quality fibre which will be spun into new yarn that can be used in many practical applications in any industry.

Senior partner, Dov Charney, who has implemented several proactive employee programs in order to establish American Apparel as a sweatshop-free company, said he was pleased to extend his conscientious corporate philosophy to help the environment.

"At American Apparel we are trying our best to promote our workers' rights. Now we are also making a genuine effort to manufacture our product on a more environmentally friendly basis. But we are only at the beginning stages," he said.

"It always bothered me to see all the scraps being thrown away. Actually the reason we started a panty line was to use all our excess scraps, but now we have a total solution for the stuff we just cannot use."