Park Valley Dyers Installs Thies Equipment

Park Valley Dyers Ltd., United Kingdom, a joint venture between contract fabrics weaver Camira
Fabrics Ltd. and Holmfirth Dyers Ltd., has installed 10 dyeing machines and a horizontal pressure
dryer manufactured by Germany-based Thies GmbH & Co. KG. Thies also designed the layout and
auxiliary equipment specifications at the plant, a former dyeing facility that has been
recommissioned after serving for some years as a storage facility. The operation is the first
dedicated dyeing plant to be installed in the UK in more than 20 years and represents an investment
of 2 million British pounds, Camira reports.

The machinery at Park Valley Dyers dyes 25 tons of yarn weekly and is operated by six
employees. The plant features an energy-efficient hot water boiler with a recovery unit, and
recycles and reuses all water used. The drying machinery uses hot air instead of radio frequency.
In addition, the plant recycles all yarn delivery pallets and packaging.

Machinery installed includes an eco-bloc quattro lab sampling unit, and seven horizontal and
two vertical eco-bloc yarn-dyeing machines — including two 840-kilogram-capacity units that can be
linked and operated using one control unit. Park Valley also installed a pharmaceutical standard
recipe preparation booth that enables the company to achieve a 98-percent right-first-time rate,
according to Philip Brearley, managing director, Camira Fabrics.

September/October 2012

Quick-Med’s Stay Fresh® Nets Expanded EPA Approval

Quick-Med Technologies Inc., Gainesville, Fla., has received an amended U.S. Environmental
Protection Agency (EPA) registration for its hydrogen peroxide-based Stay Fresh® Antimicrobial — a
nontoxic, durable, cost-effective technology that retains its efficacy on textiles and other
materials under a range of laundering conditions, according to the company.

The amendment expands approval for use of the technology to 30 new sites, enabling its use in
products such as adhesives, aprons, backpacks, incontinence pads, lumber, luggage, shoe liners and
inserts, shower curtains, superabsorbent polymers, and wound dressings. It also addresses treatment
application levels based on an article’s intended use and provides for “ultimate” durability,
“standard” application and warehouse “inventory protection” rates.

In addition to military uniform, apparel and other consumer textile applications, Stay Fresh
has potential applications for products such as medical devices. Quick-Med has filed a 510(k)
Premarket Notification with the U.S. Food and Drug Administration for its Stay Fresh Skin Fold
Management Textile, a medical absorbent product designed to provide moisture management and
antimicrobial protection in order to prevent damage to skin from abrasion within skin folds.

September/October 2012

Verdezyne Granted Patent For Biobased Adipic Acid Process

Verdezyne Inc., Carlsbad, Calif., has been granted U.S. Patent No. 8,241,879 for its biobased
adipic acid production process, which uses yeast fermentation to convert non-food plant-based oils
into adipic acid, used in the production of renewably sourced nylon 6,6 (N 6,6), thermoplastic
resins and coatings.

In addition to environmental benefits, biobased adipic acid is expected to offer economic
advantages over traditional petroleum-based adipic acid.

E. William Radany, Ph.D., president and CEO, said Verdezyne has teamed with another company
to polymerize N 6,6 made with biobased adipic acid to produce carpet yarn, and also plans apparel
yarn trials. He said several N 6,6 producers are interested in incorporating biobased adipic acid
into a 50-percent renewable fiber, and noted that Verdezyne is developing a pathway to manufacture
hexamethylenediamine, which would enable production of 100-percent biobased N 6,6.

September/October 2012

Sage Automotive Interiors: Global And Growing

Automotive interior fabrics including upholstery, headliners and door panels make up a significant
portion of the total textile utilization in an automobile. According to information compiled by
United Kingdom-based consultancy PCI Fibres, man-made-fiber upholstery fabrics, largely polyester,
comprise 70 percent of total upholstery materials, and — at the rate of 5 pounds per vehicle, with
an estimated 14.2 million vehicles produced in 2012 in North America — amount to 22,000 tons of
fabric. Headliners, weighing an average 1.5 pounds per vehicle, account for 9,700 tons of fabric.
Together, these two categories comprise nearly 14 percent by weight of the total 229,300 tons of
textile materials used in 2012 in the North American automotive industry. Subtracting the 30
percent of vehicles that do not have fabric seat upholstery, they comprise between 20 and 22
percent by weight of the total textile component per vehicle.

Other automotive textiles include some 38,500 tons of tufted and nonwoven carpet; some
10,000 tons of tufted floor mats; 50,070 tons of tire cord; 32,000 tons of molded parts and
insulation; 20,000 tons of seat belt fabric; 3,200 tons of polyester under-the-hood items; and
41,000 tons of air bag fabric; among other textile products.

AutoYES

Sage’s YES Essentials® automotive seat fabrics feature repel-and-release stain resistance
as well as antistatic and odor-eliminating properties, and also reduce the amount of VOCs in the
cabin.



Sage At A Glance


Sage Automotive Interiors Inc. — a manufacturer of seating, headliner and door panel fabrics
— is one of several U.S. textile manufacturers serving the the automotive interior textiles market.
Its headquarters are located on the Clemson University International Center for Automotive Research
(CU-ICAR) campus in Greenville. The company operates five manufacturing plants in South Carolina
and Georgia, and a sales and design office in Detroit; a fabric formation and finishing operation
in Brazil; and design/engineering/sales offices in the United Kingdom, China, Japan and Korea.
Manufacturing partners are located in the Czech Republic, Poland, Sweden, Turkey, Egypt, South
Africa, China, India, Japan, Korea and Thailand. Its customer base comprises major global
automakers including Ford, General Motors, Chrysler/Fiat, Toyota, Honda, Mazda, Suzuki, Nissan,
Hyundai, Kia and Volkswagen.

Sage originated in 1948 as the Automotive Body Cloth Division of Milliken & Company,
Spartanburg, which sold it in 2009 to the division’s management team — including CEO Dirk Pieper
and COO Brian McSharry — and Azalea Capital LLC, Greenville. In 2011, Los Angeles-based private
equity firm The Gores Group LLC replaced Azalea in the partnership, and is helping Sage implement a
strategy to expand its global operations and its product portfolio. Over the last three years,
Sage’s employee base has grown from 900 to some 1,300 worldwide, including more than 1,100 in the
United States.

According to Pieper, Sage’s primary strengths are its global footprint, with world-class
manufacturing underpinning its operation and its design and engineering expertise; innovative
product offerings that have solved consumer issues; and leadership in the area of sustainability,
not only through its use of materials with recycled content, but also through the design and
engineering of its fabrics.

AutoSharonPlant

An associate reviews a weaving machine setup at Sage’s Sharon Plant, a state-of-the-art
facility poised for growth in the woven automotive textiles market.

“Since we spun out of Milliken, we have worked to improve upon the Milliken DNA in areas
like lean manufacturing, with a very heavy concentration of visual metrics, which drive our
processes,” Pieper said. “We have worked very diligently to become a global supplier, and we
continue to expand our global platform as we target investing in certain regions to support local
supply,” he added, noting that Sage aims to increase its presence in the European and Chinese
markets through such actions as having its own manufacturing operations in China and Eastern Europe
instead of commission manufacturing as it currently is doing.


Pieper also said the company is very close to making a decision as to what sorts of textiles
it will add to its portfolio.


Processes And Products


In the United States, Sage’s Avalon Plant in Toccoa, Ga., processes and textures raw yarn
and fiber sourced from companies such as Unifi Inc., Greensboro, N.C.; Nan Ya Plastics Corp. USA,
Lake City, S.C.; and other sources globally. The textured yarn is then sent to the company’s Sharon
weaving plant in Abbeville, S.C.; and its Gayley knitting, dyeing and finishing plant in Marietta,
S.C. Additional dyeing and finishing operations are located at its Abbeville Plant in Abbeville,
which processes both woven and knitted fabrics.

Current upholstery products include YES Essentials®, a repel-and-release stain-resistant,
antistatic, odor-eliminating fabric line that also reduces the amount of volatile organic compounds
(VOCs) in the cabin. Yes Essentials fabrics are covering the seats of more than 5 million
automobiles including Hyundai Santa Fe and Sonata models; Kia Sorrento; Toyota Highlander and
Sequoia models; and a number of Chrysler, Dodge and Jeep models.

AutoCottonBlossom

An associate transports a batch of fabric between processes at Sage’s Cotton Blossom
Plant.

Another innovative upholstery line, FXC® (fabric for extreme conditions), is a more rugged,
stain- and water-resistant, fast-drying, microbe-resistant fabric line designed for sport utility
vehicles and targeted to customers who love outdoor activities. It was developed partly because
Honda was designing a vehicle that would appeal to wind-surfing, mountain-biking, outdoor-active
customers who would want a textile product that could be completely hosed down and retain its
cleanliness. A next-generation FXC fabric is going into the Toyota Tacoma model.

Sage also has a portfolio of more conventional fabrics as well as a fabric made with Unifi’s
Repreve® 100-percent recycled polyester fiber. That fabric is featured in the Ford Focus EV and, as
of the 2013 model year, the Ford Fusion.

With regard to recycled-content fabrics, Pieper said: “We have been focused on adding
recycled content and sustainable products into cars. Unifi’s timing in developing Repreve gave us a
great opportunity with our channels to be able to source Repreve and open the door for Unifi.”
Unifi also supplies materials used in some Yes Essentials fabrics.

AutoPiper

Sage CEO Dirk Pieper began his career with the company more than 30 years ago, when it was
still the Automotive Body Cloth Division of Milliken & Company.


Sage sends finished fabrics to third-party tier 1 cut-and-sew locations, mostly in Mexico,
to have them made into seat covers.

Headliners and door panels are laminates of knitted fabrics and polyurethane foam. They are
processed at Sage’s Cotton Blossom laminating plant in Spartanburg and then sent to converters,
usually near the assembly plants, that have special molding operations.


People


Pieper spoke enthusiastically about the people working at Sage, from management to line
associates. “We’ve invested heavily in our people, and our people are heavily invested in Sage,” he
said. We operate very much like a family, and there’s not a lot of hierarchy. We can make decisions
quickly, and we value our people’s opinions.”

Sage’s top-line management has a total of 230 years of experience, which is one inspiration
for the company’s name. “We bring thought leadership and wisdom to the industry,” Pieper explained,
adding that another inspiration relates to sage as a natural, green plant and a consequent
association with the idea of sustainability.

The company’s design group includes 35 people globally, and they are brought together
several times a year to exchange ideas. “The amount of thought leadership that takes place within
that group is phenomenal, particularly when we focus on consumer research, trends, material trends
and their interaction with OEM [original equipment manufacturer] designers,” Pieper said.

Sage’s engineers work not only with the company’s products, but also with unrelated problems
a customer may have. “The problem may not even be with our material, but the customer may ask our
engineers to engage and solve functional problems through making adjustments to the textiles,”
Pieper said.

The company has been named one of the Best Places to Work in South Carolina for 2012.
Companies are chosen for the honor based on assessments of employer benefits and policies, and
employee engagement and satisfaction.

AutoSageHQ

Sage’s new headquarters on the CU-ICAR campus in Greenville give it access to research
facilities and opportunities to collaborate with other companies involved in the automotive
sector



CU-ICAR Campus: Innovation Central


In August 2011, Sage moved its headquarters from Spartanburg to the 250-acre CU-ICAR campus
in Greenville, where it has access to research facilities and ready opportunities for collaboration
with other companies involved in the automotive and motorsports sector.

“CU-ICAR is a real hub of automotive expertise, philosophy and technology,” Pieper said. “We
work very closely with Clemson on research, but also with students and professors here on their
projects, like Deep Orange [an electric concept car focused on providing a totally integrated
lifestyle experience and featuring elements such as electronic integration and Yes Essentials
seating fabric]. We also get exposure to projects like Innomobility, a forum for the exchange of
ideas and innovative concepts in the automotive industry, and we are participating actively in that
program. We have a whole module of very independent research on what’s the next cutting edge in
textile technology combined with other technology. By moving to CU-ICAR, we have had a lot of
interaction with BMW, Michelin and other industry leaders.”

Through its participation in Innomobility, Sage has opportunities to engage in what might be
called a “whole car” comprehensive transportation-oriented networking system that includes leading
thinkers and visionaries who are designing and engineering technologies and products not only for
the present, but also for the future, with consideration for all aspects -— from the user
experience to the supplier base and producers.


Quality Control: A Team Approach

Quality control is an important aspect of any manufacturing business, as quality problems
can impact production efficiencies, employee morale, customer satisfaction and profits. One way
Sage has tackled quality problems has been to utilize Knoxville, Tenn.-based QualPro Inc.’s
multivariable testing (MVT®) system, which recently helped the company bring a new headliner it had
developed beyond the accepted quality standards and also helped it achieve a significantly improved
throughput for the product.

According to Brian Gardze, then-plant manager at Cotton Blossom Plant and now project
manager for Sage, the process involved teamwork among all levels of employees at the plant, where
problems were encountered related to bond strength in a knit/polyurethane foam laminate. “Bond
strength is critical throughout the industry,” Gardze said. “We were seeing similar concerns in a
competitor’s product.”

In brainstorming sessions, employees contributed more than 100 ideas, which were whittled
down to 17 factors related to process, foam cure, line speed, temperature, tension and other
factors. Simultaneous testing carried out over three days, with no additional investment required,
resulted in an initial 464-percent bond strength improvement – with faster line speeds contributing
to that improvement – and, ultimately, a 751-percent improvement in foam tear performance.



The State Of The Industry

Sage Automotive Interiors CEO Dirk Pieper believes the U.S. automotive industry is in a
healthy state at present. “This year, we anticipate about 14.8 million vehicles will be produced in
the United States,” he said, noting that while the number isn’t as high as the 16 million produced
in 2007 before the Great Recession, it is much better than the low of 6.5 million in 2009.

“China continues to grow, although it has leveled off from 30-percent growth to 8-percent,
which is still good,” he continued.

Markets in other parts of the world are not as strong, Pieper said: “With the difficult
situation in the European Union, most of our customers there are struggling. India has a fantastic
growth percentage-wise, but vehicle growth is not so great. Japan is flat or declining because of
the exchange rate, and the market in Brazil is somewhat depressed.”


September/October 2012

IFAI Celebrates 100 Years At 2012 Expo

The Roseville, Minn.-based Industrial Fabrics Association International (IFAI) will mark its 100th
anniversary during IFAI Expo Americas 2012, which will be held Wednesday through Friday, November
7-9. This year, the expo, said to be the largest specialty fabrics show in the Americas, will
colocate with JEC Americas 2012 at the Boston Convention & Exhibition Center.

IFAI Expo Americas 2011, held in Baltimore, hosted 5,066 participants from 43 countries,
with 340 suppliers from 18 countries exhibiting their products and services to expo visitors. As of
Textile World’
s press time, IFAI had more than 400 exhibitors from 22 countries signed up for the 2012
edition, and projected 6,000 registered participants.

“This industry runs on innovation, enabling attendees to get a heads up on emerging markets
and products,” said Todd Lindemann, vice president of conference management, IFAI. “The scope and
depth of the specialty fabric markets represented at IFAI Expo enables connections to be made
throughout the industry’s value chain.”

IFAILindstrand

Lindstrand Technologies Ltd. won a 2011 IAA Award of Excellence for its work on the
22,000-cubic-meter Delhi Aerostat — deployed during the Opening and Closing Ceremonies of the 2010
Commonwealth Games in Delhi, India.



IFAI Expo Education


At this year’s show, IFAI will debut Business Power Programs with industry-specific
roundtables. The programs will be held each morning and will present expert advice on improving
business practices, products and marketing.

Three continuing education programs will be offered free of charge to architects, landscape
architects and students in those fields: “Green Roofs for Designers”; “Fabric Structures”; and “
From Building to Body: Current Research into Interactive + Technical Textiles,” presented by the
Massachusetts Institute of Technology.


On Thursday, November 8, two bonus sessions will be offered at no charge to full IFAI Expo
Americas 2012 registrants as well as to full Advanced Textiles & Safety Conference registrants:
“Understanding and Working with the Berry Amendment,” organized by the U.S. Industrial Fabrics
Institute, Roseville; and “Performance Textiles: Technologies and Testing,” organized by the
American Association of Textile Chemists and Colorists (AATCC), Research Triangle Park, N.C.


Advanced Textiles & Safety Conference


The 2012 Advanced Textiles & Safety Conference will be held Tuesday through Thursday,
November 6-8, in conjunction with IFAI Expo Americas 2012. The conference — supported by the Fiber
Society, Raleigh, N.C., Synthetic Yarn and Fiber Association, Clover, S.C., and AATCC — will
include technical presentations offering business insights into cutting-edge research and
developments and their application-based uses.

Technical sessions will cover topics including smart textiles; color-changing material;
silicon-based technologies; moisture management; decontamination wipes; wearable technologies;
DNA-based authentication of textiles; and a profile of an evolving business.

The conference also will include two keynote luncheons. On Tuesday, Eugene Wilusz, Ph.D.,
senior nuclear, biological, chemical scientist in the Warfighter Science, Technology, and Applied
Research Directorate at the U.S. Army Natick Soldier RD&E Center, will discuss “Perspectives in
Chemical Biological Protection.” On Wednesday, Blanton Godfrey, Ph.D., dean of the North Carolina
State University College of Textiles, will present “Building the New World of Textiles, Fibers,
Fabrics and Products.”


Expo Highlights


Special events and features to commemorate IFAI’s 100th anniversary and industry
achievements will take place throughout the three-day expo.

Festivities and highlights will include the pre-show Industrial Fabrics Foundation Indy
Fundraising Event supporting scholarships and industry research; a welcome reception; a 100-year
anniversary party; the IFAI History Museum featuring archival materials and photographs; and IFAI’s
annual meeting. The Fiber Society will hold its Fall Meeting and Technical Conference, themed “
Rediscovering Fibers in the 21st Century,” November 7-9 in conjunction with IFAI’s annual meeting.

This year, winners of the IFAI International Achievement Awards (IAA) competition will be
presented during a special event on the show floor. IFAI received 334 entries from 127 companies in
13 countries for the competition, which recognizes design excellence within the specialty fabrics
market.

IFAI also has launched the ShowStoppers awards competition, which is open to all expo
exhibitors and recognizes product innovation in six categories: fabrics, fibers and films;
chemicals, coatings and compounds; hardware, findings and accessories; equipment and tools;
services to manufacturers; and end products. Entries will be on view in a special ShowStoppers area
as well as on the show floor. Award winners will be selected by expo attendees.

Other show floor highlights include a fabric sourcing center offering samples of exhibitor
materials organized into application types; and the inaugural Advanced Textiles Pavilion featuring
exhibitors active in the global technical textiles market.

“2012 is the year not to be missed,” Lindemann said. “The combination of lively social
events to connect with peers, increased focus on new advancements and record attendance combined
with IFAI’s 100-year celebration will make this years’ Expo a very memorable event!”

IFAIshowfloor

The show floor at IFAI Expo Americas 2011 featured 340 suppliers from 18 countries exhibiting
their products and services to more than 5,000 visitors from 43 countries.



Global Initiatives


The U.S. Department of Commerce has for the fifth time designated IFAI Expo Americas 2012 as
a participant in the International Buyer Program (IBP), which promotes U.S. exhibitions worldwide
via U.S. Commercial Service offices and diplomatic missions. IBP offers complimentary exhibitor
matchmaking services to connect exhibitors with international buyers; a show directory of U.S.
exporting exhibitors; and hands-on assistance for exhibitors.


JEC Americas 2012


JEC Americas 2012 — organized by France-based JEC Group, which provides networking and
information services for composite markets and is said to be the largest composites industry
organization worldwide — will make its American debut following shows in Europe and Asia earlier
this year.

JEC Group expects 300 exhibitors from the United States, Europe, the Middle East and Asia to
present their products and services. Composite sector fields include processing and technologies;
fibers and textiles; resins; fillers and additives; machines and equipment; software and services;
universities and research centers; and consulting firms. End-user markets include aeronautics,
automotive, wind energy, construction, marine, consumer goods, and medical, among other markets.
The show’s program will include the Innovative Composites Summit Forums and Conferences, technical
sales presentations, and the JEC Innovation Awards.

“We are pleased about the alliance with IFAI,” said Frédérique Mutel, president and CEO, JEC
Group. “Both organizations are trade organizations fully committed to their industries. Both are
experts of their sectors and produce high value information products. Together we will deliver a
strategic event and a unique platform combining composites and specialty fabrics.”

For more information about IFAI Expo Americas 2012 and JEC Americas 2012, visit ifaiexpo.com;
jeccomposites.com/events/jec-americas-2012




September/October 2012

Executive Forum: U.S. Textile Exports On The Rise

Kim Glas, deputy assistant secretary for textiles and apparel in the U.S. Department of Commerce
International Trade Administration’s Office of Textiles and Apparel (OTEXA), oversees programs and
strategies to improve the domestic and international competitiveness of the U.S. fiber, textiles,
apparel, footwear, and travel goods industries. Glas also serves as chairman of the Committee for
the Implementation of Textile Agreements (CITA), which supervises the negotiation and
implementation of textile and apparel agreements.

Prior to joining the Department of Commerce, Glas served more than 10 years as a
professional staff member in the U.S. House of Representatives. As deputy chief of staff and
legislative director for Rep. Michael Michaud, D-Maine, for more than seven years, Glas managed the
congressman’s legislative agenda and was the key advisor on international trade and labor issues.
During her tenure on Capitol Hill, Glas also worked for Rep. John J. LaFalce, D-N.Y., advising on
trade and labor issues.


Textile World
:
In 2010, President Barack Obama and then-Secretary of Commerce Gary Locke launched the National
Export Initiative (NEI), an ambitious five-year plan to double the value of exports from $1.5
trillion per year at the end of 2009 to $3.1 trillion by the end of 2014. How are textiles faring
in this effort?

Glas: As part of the NEI, exports of textiles and apparel have done well. In 2011,
the United States exported $22.4 billion of textiles and apparel, an increase of 35 percent from
$16.6 billion in 2009. From 2009 to 2011, textile mill products exports grew 36.5 percent, and
apparel exports grew more than 30 percent. We look forward to providing our support to the industry
to continue this excellent trend in increased exports.


TW: Tell us specifically about OTEXA and the work your group is doing.

Glas: I just returned from a very successful event in Las Vegas to promote
“Made-In-America.” Under Secretary of Commerce for International Trade Francisco Sánchez also
participated in this event, which was focused on encouraging domestic sourcing of textile and
apparel products. More than 80 U.S. companies showcased their products at the trade show [Sourcing
at MAGIC].

OTEXA is actively involved in the textile and apparel negotiating group for the
Trans-Pacific Partnership Agreement, which will provide new business opportunities to U.S.
industries. We are responsible for implementing textile and apparel provisions of our free trade
agreements and trade preference programs.

In conjunction with the U.S. Trade Representative’s office, we recently succeeded in getting
Congressional approval of legislation to extend trade preferences for African Growth and
Opportunity Act-eligible countries, a provision that will help keep hundreds of thousands of women
in Africa employed, and was set to expire Sept. 30, 2012. The legislation also makes important
technical changes to the textile and apparel provisions of the Dominican Republic-Central
America-United States Free Trade Agreement [CAFTA-DR]. The changes will support the U.S. textile
industry in North Carolina and South Carolina, and is expected to impact American jobs in this
sector.

We have an active export promotion program that assists small and medium-sized enterprises
to expand their business to overseas markets. In the past year, we have coordinated participation
by dozens of U.S. companies at trade shows in Chile, India, South Africa, and the United Arab
Emirates (UAE).

ExecForumGlas

OTEXA Deputy Assistant Secretary for Textiles and Apparel Kim Glas


TW: Are there specific geographic regions or end markets — for example,
construction/infrastructure, medical, automotive and such — being targeted by OTEXA for technical
textile export support? What’s your opinion on the future of the technical textiles industry in the
United States?

Glas: The United States is a globally competitive producer of technical textiles,
as evidenced by the significant number of countries to which we export. There is wide demand from
around the world for Made in USA product, especially for technical textiles. OTEXA works
hand-in-hand with the U.S. Commercial Service in promoting exports of U.S. textiles and apparel. We
will be at IFAI Expo Americas 2012 in Boston later this year. We will be assisting with the
International Buyer Program and providing a seminar focused on exporting U.S. technical textiles to
global markets.

Major trade shows, such as the Hotel Show in UAE or DSEI [Defence & Security Equipment
International] in England, bring together representatives from around the world and therefore are
excellent locations to showcase U.S. products. In addition, we look for shows in new emerging
markets, such as African Aerospace & Defence in South Africa. In the coming year, OTEXA is
working on participating in textile and apparel trade shows in Azerbaijan, India, Colombia, UAE,
and Brazil, as well as major international shows located in Germany and England. Details on these
activities as they develop will be posted on our website, otexa.ita.doc.gov.

The products showcased at these events are for a wide variety of end-uses, including
construction and infrastructure support; aviation and automotive; medical; hospitality; military;
and law enforcement and safety personnel protective gear. Through OTEXA’s industry partner matching
efforts, a U.S. company has been able to supply 10 specialty textile component items to an
international aviation/ aerospace company that mandates the use of components compliant with the
Berry Amendment. OTEXA helped to locate a company that could develop special military fabrics for a
foreign government’s navy. Through OTEXA’s presence at an international trade show, another U.S.
company made contacts with a foreign company in need of an engineered woven product for industrial
use.

Advanced textile materials hold great potential for the U.S. textile industry. From textile
heart filters, to textile composites used in airplane bodies, to highly flame-resistant fabrics and
clothing for soldiers, first responders and firemen — the United States is on the leading edge of
new and innovative products and materials. Earlier this year, I accompanied Under Secretary Sánchez
to North Carolina to tour the advanced manufacturing incubator projects at North Carolina State
University’s College of Textiles and to meet with representatives of our textile industry to
highlight the innovation and future potential of U.S. manufacturing in this sector.


TW: How does OTEXA define technical textiles? Each month, OTEXA issues an export
report for the Specialty and Industrial Fabrics Group. What products are counted in this
group?

Glas: The export grouping for “Specialty and Industrial Fabrics” is comprised of
almost 70 individual product lines that include specialty narrow woven fabrics; tire cord and tire
cord fabrics; fabrics that have been coated, covered or laminated, or have rubber or plastic
imbedded in them; fiberglass fabrics; and plates or sheets of plastic that are combined with
textile materials. A correlation of the export data lines covered by each product grouping is
available on our website.


TW: According to the latest OTEXA export report, issued August 9, the United
States within the last 12 months exported to China almost $180 million of products within the
Specialty and Industrial Fabrics Group. What are the Chinese buying?

Glas: We do not have specific information on what within this product grouping is
being purchased by China. However, we have seen a significant increase in our exports to China of
the broad range of textile mill products — which grew by 46 percent between 2009 and 2011, to $1.3
billion. China is the second-largest economy in the world after the United States. This significant
upward trend in U.S. exports of textile mill products, including specialty and industrial fabrics,
to China suggests a broad spectrum of end-uses for a growing economy and a strong interest in U.S.
products.


Stephen M. Warner is publisher of BeaverLake6 Report,
beaverlake6.com, a Web-based newsletter reporting on
trends, data and issues that he feels influence the technical textiles industry. Warner also is
former president and CEO of the Industrial Fabrics Association International.


September/October 2012

In Memoriam: Douglas Charles Billian

Douglas Charles Billian, of Atlanta and New York City, founder and chairman, Billian Publishing
Inc., passed away on Sept. 15, 2012, at his home in Atlanta after a courageous battle with a brain
tumor.

Doug Billian was born on March 13, 1928, to Elsie Adelaide (nee Bowers) and Alfred Arthur
Billian in Bound Brook, N.J. The youngest of four boys, he was a New Jersey state pole vaulting
champion in high school. As a young boy, he joined the Boy Scouts, and attained the level of Eagle
Scout, earning Bronze, Silver and Gold Palms, and The Order of the Arrow. Through the years, he
generously supported the Boy Scouts of America.

NewsBillian

After graduating from the Kellogg School of Business at Northwestern University, he received
his Naval commission just prior to the Korean War outbreak, serving from 1950 to 1953. He served
aboard the USS Hyman (DD-732), which engaged the enemy in Wonsan Harbor in the Sea of Japan in
1951.

After a 20-year career with McGraw-Hill Publishing Co. on publications such as Purchasing
Week, Aviation Week and Business Week, he launched Billian Publishing Inc. in 1978, with the
acquisition of Golf World magazine. Subsequent acquisitions included

Textile World
and Art & Antiques. The company also launched Boating World. Today, Billian Publishing
primarily serves the healthcare industry through Billian’s HealthDATA, Porter Research and
Healthcare IT Research. Its Textile Industries Media Group’s titles include

Textile World
,

Textiles Panamericanos
and

Textile World Asia
.

“Mr. Billian had a long association with textiles and publications serving the textile
industry. He often spoke of how he enjoyed members of the textile industry and said that, even in
slow times, it was important for the industry to have a strong business press. Through the years,
he published titles including ATI and Textile Industries as well as current titles

Textile World
,

Textiles Panamericanos
and

Textile World Asia
,” said James M. Borneman, editor in chief, Textile Industries Media Group. “He always
insisted on editorial quality and providing a platform to showcase technology and innovation in
textiles.”

Billian was a former member of the Magazine Publishers Association and a lifetime member of
the National Association of Eagle Scouts sponsored by fellow Scout Astronaut Jim Lovell. He served
on the Board of Trustees of The United States Golf Association and Meals on Wheels Atlanta, and as
chairman of the IFC Senior Citizens Foundation.

He is survived by his devoted wife of 26 years, Louise “Lulu” Lindsey Billian; children,
Tracey Billian Krause, Martha Billian Meyer with spouse Dan, Lindsey Perkins Mullen with spouse
Tim, Charles Jackson “Jay” Perkins Jr. with spouse Michelle, and Douglas C. Billian Jr. with spouse
Jennifer; eleven grandchildren; brother Alfred Billian Jr. of Ft. Wayne, Ind.; and many nieces and
nephews.

As a depression-era child, Billian had deeply engrained values. He will be remembered for
his incredibly high moral standards, honorable character and utmost integrity. His unrelenting work
ethic, coupled with his love of publishing and investing, contributed to his success. However, his
intense belief in providing for his family drove his ambition. Those whose lives he touched have
been inspired by his example.

September/October 2012

H&M Bans PFC Use

Sweden-based retailer H&M Hennes & Mauritz AB (H&M Group) has banned the use of
perfluorinated compounds (PFCs) in all products it sells. All products ordered on or after Jan. 1,
2013, must be PFC-free.

PFCs — used to provide water, oil, grease, heat and stain repellency to a range of textile
and other products — have been found to be persistent in the environment and are associated with
adverse affects on humans and wildlife. H&M will replace PFCs in its products with
BIONIC-FINISH®ECO, a fluorocarbon-free water-repellent finish produced by Rudolf GmbH, Germany,
using a blend of branched comb polymers and dendrimers.

Last year, H&M and other fashion and sport brands initiated Joint Roadmap: Toward Zero
Discharge of Hazardous Chemicals, with the goal of eliminating hazardous materials discharge in
apparel and footwear supply chains by 2020. H&M also is on the steering committee of the
Apparel and Footwear Industry Restricted Substance List Management group, which strives to reduce
the usage and impact of harmful substances in the apparel and footwear chain.

September/October 2012

Congress OKs Fixes To CAFTA-DR, Renews AGOA Fabric Proviso

President Barack Obama recently signed legislation to amend the Central America-Dominican Republic
Free Trade Agreement (CAFTA-DR) and renew the third-country fabric provision in the African Growth
and Opportunity Act (AGOA), among other trade-related items.

The CAFTA-DR amendments include, among other items, a redefinition of sewing thread that
adds single multifilament synthetic yarn used as sewing thread. In the original agreement, an
out-of-date definition failed to consider this thread type, which is commonly used in apparel
production, resulting in a loophole that allowed use of such yarn from non-signatory countries in
place of thread originating in the CAFTA-DR region, and leading to a loss of jobs for U.S. thread
manufacturers.

AGOA’s third-country fabric provision, which allows lesser-developed sub-Saharan countries
to produce duty-free and quota-free apparel using fabric and yarn produced anywhere in the world,
now will continue in effect until Sept. 30, 2015. Congressional delays in renewing the provision
had led to moves by U.S. apparel companies doing business in the region to seek other production
sources, thereby threatening to cause job losses and plant closures in sub-Saharan Africa and a
negative impact on cotton and textile inputs.

September/October 2012

Desperately Seeking Stability

After a year of up-and-down business conditions — a period that followed one of the most sustained
up cycles in recent memory — the yarn market seems to have stabilized, at least for the short term.

Spinners and brokers report a steady stream of orders, with pipelines beginning to fill and
delivery dates beginning to move out. The reasons for the year-long uncertainty in the business
were multiple, according to many industry insiders and observers, who now hope for a sustained
period of stability.

“Coming off such a crazy period, the market was in complete disarray,” said one observer.
“Many customers, fearing product shortages, overbought. Through a combination of factors, cotton
was in short supply and the price increased to record levels. Then, we all quickly came crashing
back to earth.”

Cotton prices began to drop precipitously, and many spinners were left with inventories of
high-cost raw materials that were suddenly worth a lot less in the marketplace. Orders stopped
coming as customers became concerned about the volatility of pricing. Retailers were left with a
glut of product that, in still-difficult economic times, was not moving off the shelves as quickly
as they would have liked. “In the end,” said one spinner, “we moved from feast to famine almost
overnight.”

Hopes are high in the industry that all of these issues have finally resolved themselves.
“There was a necessary inventory correction,” said one industry insider. “A lot of customers
purchased more than they needed when yarn was in short supply. We expected a correction to last a
few months and, instead, it lasted the better part of a year. Also, there remained a tremendous
amount of uncertainty about prices. Both spinners and customers were caught out in the last cycle,
and there was a lot of hesitancy to go down that road again.”

Over the past few months, the price of cotton has stabilized at levels close to where they
were before the boom cycle. Whatever inventory correction occurred seems to have run its course. “I
was in a major retailer’s store the other day, and there is not a whole lot of selection on the
shelves right now,” said one observer. “This tells me that retailers are only stocking that
inventory they absolutely have to have.”


Prices Of Imported Yarns Going Up


Along with the domestic market factors, another reason for the recent increase in U.S. orders
is the pricing and availability of imported yarns. Commented one yarn broker: “Prices for imported
yarns are increasing and delivery times are moving out. It is going to take you eight weeks to get
it, if you can even get it then. It may be 10 weeks. I just brought in two containers. The one that
hit the dock last week was two weeks late. The one that hit the dock this week was three weeks
late.”

Added a spinner: “A lot of customers are starting to return programs to the U.S. The prices
are higher, but there is not as much difference as there was just a short time ago. And delivery
can be a lot faster.”

A yarn broker said: “When customers take delivery of imported yarn, they think they can
reorder at the same price, but they can’t. Prices are going up, and when companies in Asia can’t
get the prices they are asking, they stop selling. India and Pakistan have stopped shipping
recently because they can’t get the prices they want.”

He continued: “Retailers are talking about bringing programs back to the U.S. Of course,
they’ve been saying that for the past eight years. But some of the programs I’ve recently quoted on
are the first times somebody has seriously inquired on 200,000 or 300,000 pounds in a long time.
And, there are people I’ve tried to call on for the past year, who haven’t returned my calls. They
are calling me now.”

Ultimately, spinners are hoping current market conditions will loosen pricing pressures and
allow them to begin selling at a reasonable margin. “It sounds like a broken record,” said one
spinner, “but there is still a lot of pressure on pricing. Customers don’t want to pay the
prevailing price, and mills can’t sell at the price customers want to pay. At some point, this
cycle is going to have to break. And, I think it’s one of those things that, when the first big
customer realizes that they are going to have to buy at the market price, a lot of others will
follow. It is then, I think, that we can say the market has truly stabilized.”

September/October 2012

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