From The Editor: The Power Of The Towel

By Jim Borneman, Editor In Chief

Earlier this year, you may recall that Walmart made headlines when President and CEO Bill Simon announced a $50 billion, 10-year commitment to U.S. manufacturing. Simon spoke of rethinking Walmart’s sourcing model and also referenced towels made by U.S. manufacturer 1888 Mills rolling
into 600 stores in the spring and 600 more stores in the fall.

It was good news, but — OK — it’s just towels, right? No, it is towels at Walmart.

In its Black Friday coverage, CNBC reported: “The must-have item at Walmart on Black Friday
wasn’t a mega TV, sleek tablet or the latest giggling Elmo. It was towels.”

CNBC stated: “The retailer announced it had sold 2.8 million towels during the shopping event, which this year started even earlier at 6 p.m. on Thanksgiving Day. The textile sales outpaced the 300,000 bicycles, 1.4 million tablets and 2 million televisions sold during the period, and also beat last year’s towel sales by 1 million.”

CNBC went on to report that “for $1.74, bath towels and six packs of washcloths were available. That breaks down to $0.29 per washcloth.”

No mention is made of the towels’ origins, but here’s some insight to what it means when Walmart says towels — 2.8 million multiplied by $1.74 is $4.87 million worth of towel sales in a day and a half.

As “Made in USA” continues to be of interest to consumers, there also seems to be, anecdotally at least, more positive news regarding U.S. textiles. In the three pages of News in
this issue of Textile World, eight of the 11 stories refer to plant investments, acquisitions or expansions. In addition, there are another five stories in the Fiber World section; one in Dyeing, Printing and Finishing; two in Knitting/Apparel; five in Nonwovens/Technical Textiles; and one in Supplier Notes
— that is a lot of stories on the positive side of establishing new facilities, expanding existing facilities, making acquisitions and investing in plant and equipment.

This trend is noticeable in the national press as well. The Institute for Supply Management (ISM) is full of good news. Of the 18 manufacturing industries that reported for the November 2013 Manufacturing ISM Report on Business®, 15 reported growth, and textile mills ranked second only to
plastics and rubber products. Apparel, on the other hand, leads the three industries that contracted during the period.

It isn’t easy to be an optimist in the textile industry, but it is hard to ignore all of the business activity currently taking place: Shaw, $100 million; Grupo Karim’s, $35 million;
ShriVallabh Pittie, $70 million; Gildan, more than $250 million; Parkdale, $85 million; Toray, $584 million; Louis Hornick, $2.5 million; Fitesa, $50 million; Sappi, $170 million; JN Fibers, $45
million; Palmetto Synthetics, $1.1 million; Jacob Holm, more than $45.9 million; Owens Corning, $120 million; Custom Nonwoven, more than $12.8 million; Kayser-Roth, $28 million; Goulston Technologies, $8 million — that is $1.6 billion worth of optimism. Add to that the unreported investment activity, and you are talking real optimism. There is an old rule that economic recoveries are led by investment in plant and equipment — let’s hope that old rule holds true.

November/December 2013

Quality Quest

Ensuring the quality of goods produced in a textile plant will always be of utmost importance to manufacturers, especially in today’s globally competitive market. To be sure, off-quality goods can cause problems in downstream manufacturing processes. And making sure today’s ever-savvy consumer is happy with the quality of finished goods and encouraging repeat business is always a challenge for brands and their suppliers. Fortunately, many technology companies are updating and creating new testing equipment to help manufacturers efficiently and consistently produce first-quality goods throughout the supply chain.

Yarn Production
Germany-based Textechno H. Stein GmbH & Co. KG recently introduced its Covatest capacitive evenness tester to the U.S. market through its distributor Measured Solutions Inc., Greenville. The Cova-test is suitable for sliver, roving and spun-yarn testing and has an optional Hairiness Module. The instrument uses capacitive measuring to analyze the mass irregularity along a sample and generates a mass spectrogram. The Hairiness Module features a modern optical sensor that uses laser illumination.

The company reports the tester’s simple Windows-based software and fully automatic operation make it easy to use. All numerical and statistical data are stored in a structured query language (SQL) database for further evaluation, and the Covatest can generate graphic output including diagrams of mass variation per unit length and hairness variation per unit length; and spectrograms, histograms and coefficient of variation CV(L) curves for mass variation and hairiness.

Switzerland-based Rothschild Instruments, also represented by Measured Solutions, recently introduced the Electronic Yarn R-3000 tensiometer – an updated version of its R-2000 instrument, featuring all the well-known features of its predecessor along with some notable improvements. According to the company, a new touch screen makes handling and testing the yarn easier than ever, and a new wireless version will be available in early 2014. Features include: digital and analog readings; two tension channels; simultaneous dual tension measurements; 10- to 1,200-second time base options with graphic displays on the instrument; high-precision measuring without yarn deflection during measurement; and a short 300-hertz response time for all short peak time tensions to be recorded. Rothschild reports the machine offers an accuracy of ±2 percent in its measuring range of 0.01-200,000 centinewtons. The machine’s measuring heads allow a variety of yarns to be tested including natural fiber as well as textured, monofilament, industrial, glass, carbon and other man-made fiber yarns.

At the recent ShanghaiTex 2013 exhibition in Shanghai, Switzerland-based Loepfe highlighted its Loepfe Yarnmaster® Zenit FP yarn clearer featuring the optional LabPack SFI/D off-standard bobbin detection concept. According to the company, LabPack enables 100 percent of production to be monitored and managed – in key areas such as hairiness, neps, CV irregularity and the imperfection index (IPI) – 100 percent of the time. Loepfe reports that the Yarnmaster Zenit is suitable for specialty and effect yarns such as core, slub and multitwist yarns in addition to standard yarn types. The Yarnmaster also features three dedicated sensors – one optical sensor to detect neps, short thick, long thick and thin places (NSLT) faults; a second optical sensor to look for colored foreign matter; and a triboelectric sensor that is able to detect white and transparent synthetic fibers.

Downstream Testing
X-Rite Inc., Grand Rapids, Mich., has introduced the Ci6x line of handheld spectrophotometers for color measurement of materials including textiles, automotive, packaging, plastics and paints. The company reports the tools provide improved color control for materials, in-process parts and finished goods, along with an audit trail for facilities that operate multiple sites. The spectrophotometers are NetProfiler 3.0-enabled, ensuring that the instruments are calibrated to a single centerline standard and that color measurements taken across the supply chain are accurate and reliable. NetProfiler also allows users to share, validate and audit data across multiple devices. In addition, the Ci64UV model offers ultraviolet (UV) illumination and is suitable for measuring textiles and other materials containing optical brightening agents.

Israel-based Elbit Vision Systems Ltd. (EVS) recently introduced C-Belt, an inspection system for narrow safety belts such as automotive seatbelts, safety harnessing for fire and rescue, and safety tie-downs for transportation. C-BELT detects, identifies and labels common manufacturing defects on both sides of a safety belt. According to EVS, its multi-angle viewing lines are able to detect all visible defects including ends out, broken picks, misspicks, loopy selvage, loose filament, spots, stains, holes, mono-tail slubs, bulges, dip-ins and knots. The full-color, automated inspection system works in conjunction with EVS’s online Optimization & Cut control system.

SDL Atlas, Rock Hill, S.C., has modified its Automatic Gas Controller (AGC) to meet new criteria in the recently revised ASTM International D6413/D6413M Standard Test Method for Flame Resistance of Textiles. The test methods are used to determine vertical afterflame time, afterglow time and char length. The modification addresses the distance between the solenoid valve and burner to ensure the flame does not linger beyond the termination of the test.

The AGC is featured on SDL Atlas’ Vertical Flammability Chamber and the Atlas HVUL2 Horizontal Vertical Flame Chamber. All new equipment is supplied with the new AGC, and companies with existing equipment may request a solenoid retrofit kit to easily convert their machines.

James H. Heal & Co. Ltd., United Kingdom, recently introduced the TruFade lightfastness tester and the GyroWash2 washing and dry cleaning colorfastness tester.

According to Heal, TruFade’s design and software package both are innovative and easy to operate. The machine, made from aircraft-grade aluminium components, houses nine triangular test specimen holders that allow for up to 27 specimens to be tested simultaneously, offering an exposure area totaling 1,640 square centimeters. The software was designed with touch-screen controls similar to those for a smartphone; and can track lamp and filter life, and fading progress. Other features include: an easy-access water chamber; auto-stop function; and a wide-opening test chamber for easy sample loading and unloading.
 

QualityHeal
James H. Heal reports its TruFade lightfastness tester simplifies lightfastness testing and produces accurate and consistent results.

“The entire design process has been based on how customers use the instrument and on striving to make testing as simple as possible,” said Craig Taylor, test materials manager, James H. Heal. “We carry out extensive testing ourselves during product development to emulate the testing process and typical environmental conditions. This gives you the reassurance you need to be sure that this instrument will perform in line with relevant lightfastness testing standards.”

GyroWash2 is available as a single-bath eight- or 20-position model, and each position can hold a small or a large test vessel. The company designed a new zero-force “insert and rotate” mechanism for simple vessel loading and unloading. An intuitive UniController with auto start function makes it easy for a novice to perform tests to ISO and AATCC standards, the company reports.

November/December 2013

Cotton LEADS™ Plugs Responsible U.S., Australian Practices

Cotton Incorporated, Cary, N.C.; the National Cotton Council of America, Memphis, Tenn., and its
export promotion arm Cotton Council International; and Cotton Australia have established the Cotton
LEADS™ program to raise awareness of the responsible cotton production practices among growers in
the United States and Australia, which produce some 17 percent of the world’s cotton supply.
Targeted to brands, retailers and manufacturers that want to use responsibly and transparently
produced cotton, the program touts U.S. and Australian advancements vis-à-vis water and soil
conservation, pest management, land use and biodiversity practices, reduced carbon footprint, and
traceability.

“Cotton producers in Australia and the U.S. pioneered practices that have resulted in
impressive country-wide environmental gains,” said Adam Kay, CEO, Cotton Australia. “Both countries
approach improvement on a national level. This includes national reporting and regulatory
enforcement, but also facilitates the national implementation of best practices and the ability to
collect data on a national level.”

“Apparel brands, retailers, and manufacturers require large volumes and a reliable supply of
responsibly produced fiber, as well as proof of responsible production,” said Berrye Worsham,
president and CEO, Cotton Incorporated. “Through Cotton LEADS we demonstrate how cotton grown in
the United States and Australia can help meet these requirements.”

The program is based on five core principles: commitment to social, environmental, economic
and regulatory considerations related to world-class cotton production; recognition of the need for
ongoing improvement, investment, research and sharing of best practices information among growers
and industry; understanding of the importance of collaboration with various programs to foster
responsible, sustainable cotton practices; belief in the benefits of cooperation with similar
programs to ensure cotton’s competitiveness in global fiber markets; and confidence in a cotton
identification system that ensures traceability across the supply chain.

November/December 2013

Cotton Market Outlook: Of Trumpets And Tubas

Following the unprecedented spike and collapse in global cotton prices almost three years ago, market participants from producers to consumers to policy makers are still coming to grips with the fallout. Although technical and fundamental factors still impact the market, their effects have been more muted than in the past. Instead, policy dynamics now overshadow traditional considerations and may continue to loom over the market well into 2014.

A Cacophony Of Trumpets …
Several evolving fundamental factors are pushing and pulling the market to and fro. On the supply side, as the Northern Hemisphere harvest approaches its conclusion, speculation is rife over differing production forecasts. Reports in recent weeks of generally favorable harvest weather across the American cotton belt are pitted against concern that after a dry spring, more acres may have been abandoned than earlier expected. Just the opposite is occurring in India, as prospects for a record harvest have improved over recent months. The heavy monsoon and recent rains are expected to increase yields and production there, but late-season rains have delayed cotton arrivals. Evolving sentiments for perhaps larger or perhaps smaller crops in different markets compete for the market’s fickle attention.
 

Cottongraph

Click here to view Figure 1 in a new window.

Similarly, on the demand side, various issues across the global textile supply chain continue to jockey for prominence. Even though the largest spinner in the world – China – expects to produce a record volume of yarn in 2013, man-made fibers rather than cotton are the underlying winners. Rapid gains in Chinese cotton yarn imports are supporting foreign spinners including Thailand, the Indian subcontinent, America, and elsewhere. And while prospects for Indian cotton mill demand are not as upbeat as they were a few months ago, the country still expects to spin an unprecedented volume this marketing year. Similarly, the 2013-14 record cotton consumption outlook for markets like Vietnam and Bangladesh still appears underestimated.

Further downstream, offsetting drivers at the fabric, apparel and retail stages do little to elucidate the outlook for cotton prices. While China is set to produce and export a record volume of cotton cloth this year, U.S. cotton fabric exports are on track to fade to a 20-year low in 2013. At the apparel stage, improving foreign demand is driving garment output in markets like China, Bangladesh, Vietnam and Turkey this year, while Honduras and the Philippines are set to produce fewer clothes. At the end of the supply chain, shoppers in retail markets like America and China are set to buy record volumes of clothing in 2013, but much of Europe remains in a persistent funk, offsetting increases elsewhere. Indeed, gradually softer growth prospects for the world economy are weighing on the outlook for global cotton mill demand.

Away from typical supply and demand fundamentals, other dissonant issues also are trumpeting for attention. The dollar is nearing a nine-month low, a factor often supportive of prices of dollar-denominated commodities like cotton. The volume of certificated stocks for delivery against Intercontinental Exchange (ICE) cotton futures is rapidly rebounding off seasonal lows and presently stands at the highest season-to-date volume in four years. And the seasonal swoon of cotton prices remains a perennial issue not to be overlooked. Indeed, myriad factors internal and external to cotton are competing to set the market’s melody.

… But Chinese Cotton Policy Resonates Worldwide
But beyond the din of these offsetting bullish and bearish trumpets clamoring for the market’s attention comes an unmistakable, resonating pitch overshadowing all others. This overtone emanates from China, and its impact permeates the global cotton market. In particular, the China National Cotton Reserves Corporation (CNCRC) has aggressively procured – and sometimes sold – sizable volumes of cotton in recent years. This mechanism to stabilize the domestic cotton market continues to impact prices and trade far beyond China.

Previously, China used its cotton reserve system merely to balance domestic supply and demand. Policy changed in early 2011, when a procurement price was introduced to stabilize price and plantings, sparing domestic farmers from the worst of the global price collapse. Unfortunately, the initial procurement price was set as global cotton prices fell from record levels. The CNCRC has had to continue to buy cotton at this price to support the market. China typically has held the most cotton for decades, but its stockpile has ballooned in recent years to record highs. The CNCRC has been unable to auction the supplies as rapidly as it has procured new volume. Estimates vary, but some sources indicate China may have some 58 million bales stockpiled, a staggering 62 percent of total global cotton inventories. This mountain of cotton is arguably the single-biggest issue facing the market.

Clearly, the procurement and auction mechanism has had far-reaching and sometimes unintended consequences. The scheme was instrumental in stopping the plunge in Chinese prices as well as world prices. As the graph in Figure 1 shows, introduction of the 2011-12 procurement process at 19,800 renminbi per metric ton (RMB/mt) coincided with the abrupt end of the plunge in futures prices both on the ICE and in China. High prices paid by the government for procured cotton also turned domestic mills against the artificially expensive Chinese cotton, causing Chinese mill demand to plummet even though yarn spinning is likely headed to a record year. Ironically, China began sourcing unprecedented volumes of cotton yarn from overseas, driving increased yarn output in a host of foreign mills. The back-and-forth combination of procurement and auction periods in China has effectively established a long-term trading range of sorts for ICE and Zhengzhou Commodity Exchange (ZCE) cotton.

Any changes to this policy are likely to resonate across the global market well into 2014. For the third autumn in a row, the Chinese government is purchasing cotton supplies from domestic growers. Since the process commenced in early September, reserve procurement has exceeded 1 million mt, but is still far off the year-ago procurement volume. The buying will add to the already-bulging state reserve.

Chinese mills remain hopeful that the reserve auction may resume soon, a process that again may return some of this excess cotton supply to the market at lower prices. Rumors are swirling of a December start with an initial auction price of 18,000 RMB/mt or less. If auction prices presumably are well below the 2012-13 average, the process could establish a much lower level of support to the global market well into 2014. Prices already are edging lower in anticipation, with both ZCE and ICE futures recently plumbing their lowest levels in months. How much additional cotton will be procured this season and any terms regarding a looming resumption of the reserve auction remain unknown for now. But the issue of the Chinese state reserve is likely to be the major driver dictating global cotton prices and trade well through this marketing year, keeping the world cotton market on edge.
 


Editor’s note: Gary A. Raines III is chief economist and managing editor of the Globecot News Network, now the Fibers & Textiles division of FCStone LLC, Nashville, Tenn.


November/December 2013

Quality Fabric Of The Month: Smart Design: A Win-Win For All

By Janet Bealer Rodie, Contributing Editor

There’s more to sustainability than just using eco-friendly materials and processes; conserving water, energy and other inputs; and recycling or composting. Good design; the use of high-quality, durable materials and construction; commitment to the wellbeing of workers engaged in the process; and consumer behavior and awareness regarding product care and disposal also come into play.

San Francisco-based Levi Strauss & Co.’s Dockers® Wellthread men’s apparel program incorporates all of the above considerations — all while cutting manufacturing costs and retail prices, and increasing the company’s profitability, according to Paul Dillinger, senior director of
color, concept and design, Dockers brand.

Dillinger believes constraining creativity at the start of the design process not only drives beautiful design, but also improves profitability. By limiting the number of fabrics and styles and only using a few factories that are committed to workers’ wellbeing, Levi Strauss can realize greater efficiencies and cut costs. Using processes that reduce water and energy usage also lowers costs. And the durable construction and recyclability of the Dockers Wellthread khakis, jackets and T-shirts provide extra value for the consumer.

QFOMjacket

The Dockers® Wellthread Casual Blazer was created through a collaboration between Dockers
designers and factory engineers. It is made in a factory that offers worker programs, but was set
up to make jean jackets and not blazers.

“We’ve focused our creativity on engineering durability and real service and value for the consumer, and that kind of got lost in the fashion industry to an extent,” Dillinger said, referring to today’s constantly changing fast fashion trends. “We really want to celebrate the craftsmanship and create a market venue where durability and lasting value have a place.”

The garments feature reinforcements at stress points, stronger buttonholes and more durable pocketing. The 60/3 yarn in the twill fabric used in the collection is made with extremely long-staple cotton that is more easily recycled into virgin-quality material than are shorter
staples. Thread, pocketing and labels also are 100-percent cotton, and metal rivets, buttons and closings are easily extracted using magnets. All pieces are garment-dyed, which improves operational efficiencies, Dillinger said, “and also allows us to control all of the environmental
impact of the dye process because we have influence and visibility at the garment factory versus further out in the supply chain, where we have less control. We’re putting our label on the garment, and we want the impact to be as positive as possible.”

QFOMman

To encourage energy conservation and garment preservation by consumers, the company provides care instructions that recommend cold-water washing, and it has included a locker loop on the pants
so they can be hang-dried.

Dockers Wellthread’s pilot Spring 2014 collection will launch at dockers.com in mid-February.


For more information about Dockers® Wellthread, contact Kris Marubio +415-501-6709; kmarubio@levi.com; dockers.com


November/December 2013

Oehmig Named Glen Raven COO

Glen Raven Inc., Glen Raven, N.C., has promoted Glen Raven Custom Fabrics LLC President Leib Oehmig
to corporate COO as part of its long-range strategy to bolster its global operations. In his new
position, Oehmig will work with Glen Raven President and CEO Allen E. Gant Jr. and the company’s
Executive Committee to establish strategies including a leadership succession plan under which
Oehmig will become president and CEO upon Gant’s retirement in four years. At that time, Gant will
continue as chairman of the company’s Board of Directors.

Gant joined Glen Raven in 1971 and became president and CEO in 1999. He represents the third
generation of his family to lead the company, which was founded in 1880 as Altamahaw Mills. Under
his leadership, Glen Raven has expanded into Europe, Asia and South America; and its Sunbrella® and
Dickson® fabric brands have become well-established in the outdoor furniture, marine and awning
sectors.

Oehmig

Leib Oehmig

Oehmig joined Glen Raven in 1989. He helped plan and build the company’s Sunbrella
manufacturing facility in Anderson, S.C., and served as the plant’s site manager before his
promotion to president of Glen Raven Custom Fabrics in 2009. He will be the first non-family member
to serve as Glen Raven’s president and CEO.

Dave Swers, current vice president and assistant general manager, Glen Raven Custom Fabrics,
has been promoted to president of the business unit.

November/December 2013

Look Back And Glance Ahead

All in all, 2013 was a benchmark year for many spinners. It wasn’t the best year in recent memory,
nor the most profitable. But it was certainly among the most stable.

“What we have had for most of the past 12 months has been what the industry has needed for a
long time,” said one observer. “We didn’t have incredibly high peaks, where prices shot up
overnight and production became so backlogged that customers couldn’t get their product when they
needed it — if they could get it at all. At the same time, there wasn’t a dramatic drop-off either,
where suddenly orders stopped coming in, prices plummeted off the charts, and mills got stuck with
a lot of high-dollar product they couldn’t move.”

Soon after the 2012 holiday shopping season, business came pouring in for many, with
ring-spun yarns in particularly high demand. “It was hard to find a position in ring-spun for much
of the year,” said one yarn spinner. “But, unlike the boom of a few years ago, it wasn’t so tight
that you couldn’t find it anywhere. So prices remained pretty stable for most of the year. That, in
turn, gave customers confidence to place bigger orders.”

Overall, 2013 was, as one spinner put it, “a seller’s market.” He continued, “Obviously, we
don’t have the production in this country we had a few years ago, so it takes less of an uptick in
business to create a bit of a backlog.”

As is often the case, as the fourth quarter winds down, orders fall off a bit. “There is a
rush to get product out for the holiday season, and then we often see a short period of declining
business and retailers get rid of their inventory,” said another spinner.

Orders began slowing for many in mid-October and continued to be smaller and shorter through
November. Even so, many are optimistic business will return to the “new normal” after the typical
first-of-the-year inventory adjustment.

“Looking forward, we are optimistic about 2014,” said one spinner. “As we’ve said before, our
industry is pretty well aligned in regards to capacity and demand. Unless there is an unanticipated
blip, we see no reason why business won’t remain relatively strong at least through the first part
of 2014.”


TPP Still Up In The Air


What could derail the industry for 2014 and beyond, however, is the inclusion of Vietnam in
the Trans-Pacific Partnership (TPP) without a yarn-forward rule. Vietnam is the second-largest
exporter of apparel to the United States and relies heavily upon China – which is not a part of the
TPP – for yarns and fabric.

“Vietnam’s apparel exports are up 15,000 percent over the past ten years,” wrote North
Carolina Governor Pat McCrory in a September letter to U.S. Trade Representative Michael Froman.
“This enormous growth has been fueled by Vietnam’s large state-owned, state-subsidized apparel
sector that has relied on China for its textile inputs. Without strong textile rules in the TPP,
state-subsidized producers in Vietnam could easily overwhelm U.S. and other producers in the
Western Hemisphere.”

Said one U.S. yarn broker: “The TPP is the single-biggest obstacle we have today to expansion
of the textile industry in the United States. It is, literally, the only thing that is standing in
the way of a ‘New Deal’ for the U.S. industry. We have to figure out a way to either abolish the
TPP or, at an absolute minimum, make it yarn-forward.”

Added a spinner in Central America: “Not only would it destroy the U.S. textile base, it
would absolutely decimate Central America. It would leave hundreds of thousands of people without
jobs and cause economic disruption on an unbelievable scale.”

The TPP includes much more than textiles, however. The trade agreement came under increasing
fire in November when a secret draft was leaked that includes controversial intellectual property
(IP) reforms relating to pharmaceuticals, publishers, patents, copy-rights, trademarks, civil
liberties and liability of internet service providers.

“If instituted, the TPP’s IP regime would trample over individual rights and free expression,
as well as ride roughshod over the intellectual and creative commons,” WikiLeaks’ Editor-in-Chief
Julian Assange said in a press release. “If you read, write, publish, think, listen, dance, sing or
invent; if you farm or consume food; if you’re ill now or might one day be ill, the TPP has you in
its crosshairs.”

November/December 2013

Geosynthetics: Strong Outlook For Growth

The geosynthetics industry is one of the largest end markets for technical textiles; and uses
woven, nonwoven, knitted and composite fabrics. The potential untapped applications for the
materials in this sector are huge. In this interview,

Textile World
Contributing Editor Stephen M. Warner discusses the industry and the work of the Geosynthetic
Materials Association (GMA) with Boyd Ramsey, chief engineer at GSE Environmental LLC’s North
American headquarters in Houston and chair of GMA’s Executive Council; and Andrew Aho, director of
technical markets for the Industrial Fabrics Association International (IFAI), Roseville, Minn. GMA
is a division of IFAI.

In the interest of full disclosure,

TW
notes that Warner was active in organizing the geosynthetics industry while he was with IFAI,
establishing the Geotextile and Geomembrane divisions — now combined as the GMA. He also served as
secretary general of the Second International Conference on Geotextiles in 1982 and created the
IFAI publication Geotechnical Fabrics Review — now Geosynthetics magazine — while at IFAI.


TW: Can you give us a brief description of the geosynthetics industry? How many
companies are involved in manufacturing in North America? What are the major end markets for the
materials?




Boyd Ramsey
: The demand for geosynthetics has grown dramatically in the last ten
years. The global demand in calendar year 2001 was $3.2 billion. The market shares were 42 percent
for North America, 35 percent for Europe, 16 percent for Asia Pacific and the remaining 7 percent
scattered in the rest of the world. Global sales by product type were 45 percent for geomembranes,
22 percent for geotextiles, 17 percent for geogrids and high-strength fabrics, 17 percent for
erosion control materials, and 6 percent for drainage materials. Global sales by applications were
pavement, 17 percent; erosion control, 10 percent; drainage, 11 percent; barrier products, 11
percent; and soil stabilization and reinforcement, 22 percent.

In 2010, the global demand for geosynthetics had grown to $6.1 billion. The geographic
distribution had shifted a little, too. North America’s overall market share had been slightly
reduced to 40 percent; Europe’s had fallen dramatically to 18 percent; Asia Pacific’s had grown to
22 percent; and the rest of the world’s had grown to 21 percent. Product type percentage within the
geo family of products had changed with the growth. The geomembranes percentage had slipped to 35
percent; geotextiles grew to 35 percent; geogrids and high-strength fabrics, 8 percent; erosion
control materials, 11 percent; and drainage material, 17 percent. Global sales by general
application in 2010 showed barrier products led with 34 percent of sales; stabilization and
reinforcement, 19 percent; pavement, 18 percent; drainage, 16 percent; and erosion control, 13
percent.

ExecRamsey

Boyd Ramsey


TW: Roughly how large is the North American industry in terms of yardage? Has it
grown in the last three years? What is the future growth outlook?

Ramsey: Yardage is a difficult concept. Some products are measured in yards, some
in pounds, some in square feet, and some in other units. Growth has been good the past couple of
years, returning to, and in some cases surpassing, the pre-recession levels. Future growth outlook
is also strong. Geosynthetics are still underutilized, with the reasonable potential for some areas
to have double-digit growth over the next several years.


TW: Mr. Aho, you are the managing director of GMA; and Mr. Ramsey, you currently
serve as the organization’s volunteer chairman. Can you tell us about GMA?

Andrew Aho: GMA is comprised of 80 member companies. The membership includes all
the major North American geosynthetics manufacturers, distributors and industry service providers.
The overriding goal of GMA is to help grow the geosynthetics market. GMA has been successful in
this endeavor by spearheading the development of standards and specifications that make it easier
for specifiers to spec the products; through the geosynthetics education of engineers and users;
and by the implementation of a robust government relations program for both federal and state
governments.

In addition, GMA helps organize geosynthetics conferences such as the Geosynthetics 2013
conference held last spring in Long Beach, Calif. GMA is actively in-volved in the development of
the next geosynthetics conference and trade show, Geosynthetics 2015, which will be held Feb.
15-18, 2015, in Portland, Ore. The colocation partner for Geosynthetics 2015 will be the
International Erosion Control Association.

ExecAho

Andrew Aho


TW: What are issues that can affect the industry?

Ramsey: In the U.S., Environmental Protection Agency regulations, particularly for
coal ash storage, have the potential to expand the market for the products used in these
situations. As infrastructure spending expands, the geosynthetics market share of materials used
will likely increase at the expense of traditional materials. The improved constructability of
geosynthetics and designs utilizing them are also helping to fuel expansion.

Aho: Transportation is one of the major markets for the industry. Government
transportation spending is critical. GMA would like to see the U.S. Congress pass a long-term
transportation authorization bill that would allow states to do long-range planning for
transportation projects.


TW: GMA recently held a lobby day in Washington. What were you trying to
accomplish?

Aho: GMA has been holding twice-yearly lobby days since 2006 and has developed
good relationships with key members of Congress. When GMA members visit with new members of
Congress or staffs, the goal is to introduce the industry, products and applications. GMA members
attending our recent lobby day events also advocate a long-term transportation authorization bill,
support for the coal-ash bill, and favorable language in the Water Resources Development Act (WRDA)
that funds the U.S. Army Corps of Engineers projects.


TW: Mr. Ramsey, your company serves on the Executive Committee of the GMA. You’ve
been active in the GMA governance for a number of years. A trade organization like IFAI/GMA is
dependent on the volunteer contributions of companies within the industry. Can you tell us a little
about GSE Environmental?

Ramsey: GSE Environmental is a publicly traded company. It is a leading
manufacturer and marketer of geosynthetic lining products and services; and has a worldwide
presence in markets such as agriculture, aquaculture, canals, civil, golf courses, mining, power,
stormwater retention, waste containment, wastewater and other industrial applications.

GSE’s management team is led by Charles A. Sorrentino, president and CEO. The other executive
management team members are: Peter McCourt, president, International; Jeffrey Nigh, executive vice
president of Global Operations; Mark Whitney, vice president, general counsel and secretary; Daniel
Storey, senior vice president and CFO; Gregg Taylor, vice president and treasurer; and, Edward
Zimmel, vice president, engineering.


Editor’s note: Stephen M. Warner, Arden Hills, Minn., 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. He also is former
president and CEO of Industrial Fabrics Association International.


November/December 2013

The Rupp Report: Chinese “Made In Italy”

For months, Bangladesh has been the focus of some very bad press due to the recent accidents in
garment factories. The Rupp Report has informed its readers in several articles about the situation
in Bangladesh. However, there is another place, and this time in Europe, that has some comparable
points. The issue is the situation in the traditional textile city of Prato, Italy.

Due to a fire in a Chinese textile factory in Prato, seven people were killed a few days
ago. The victims of the accident, seven dead and four wounded, were all Chinese. The fire disaster
draws attention to the miserable living and working conditions for what is essentially slave labor
in this town.

Many Chinese Immigrants

Among all Italian cities, Prato has by far the highest proportion of Chinese immigrants.
With a total population of about 188,000 people in the city, local authorities estimate the number
of Chinese immigrants to be 30,000. According to official data, 277,000 Chinese live in the whole
of Italy.

At first, the reason for the fire was not clear; the flames caused the collapse of part of
the factory. In this part of the building is located a sleeping area with small bedrooms for the
Chinese workers. The accident shows very drastic particular attention to the grievances. The
problem for the workers is the fact that they work illegally in the industrial building as well as
living with their families in primitive, shack-like crates. Because plastics were lying around, the
fire spread rapidly, and the barred windows on the building hindered an escape.

Taking Over Control

In the past 20 years, Chinese entrepreneurs have taken control of the apparel industry in
Italy’s textile stronghold. According to local information, countless Chinese people work without a
residence permit and at extremely low wages in the textile factories. Due to this strong
competitive pressure, many Italian textile manufacturers have been forced to close down their
activities.

According to the Chamber of Commerce of Prato, there are some 4,000 Chinese companies
throughout the province, specializing mainly in the field of “Pronto moda,” which means fast
delivery, always new models at low prices – and some 10 to 15 illegal workers in each factory.

Authorities complain that the Chinese are hardly paying any taxes and the major part of
their income is sent back home to China. On the other hand, social services, schools and hospitals
are hopelessly overburdened by the same people. The anger about the Chinese “invasion” is largely
spread around Prato. The rage of thousands of Italian workers who have lost their jobs in the
textile sector during the last few years is big and permanently increasing. Since the year 2000,
the number of people officially employed in this sector in Prato has been halved to just 20,000.


These Chinese enterprises in Prato export all over the world and supply big retailers such
as Zara, and many more smaller and local textile businesses. The hourly wage is estimated to be 1
euro, and the work shift is up to 18 hours a day. Local authorities have failed so far to control
the situation. The city councilor of Prato, Aldo Milano, responsible for the safety, lamented that
the city had been abandoned by the government despite repeated warnings.

The Italian Way

A number of representatives of the authorities in Rome expressed their horror after the
fire, and Minister for Immigration Cécile Kyenge condemned the situation at the factory as a
serious violation of human dignity. However, as in previous situations, such pronouncements were
never followed by action. In January 2010, Italy’s minister of the interior announced a tougher
fight against illegal Chinese workers in Prato. The police in this regard conducted a big raid,
which was denounced by Chinese officials for its “SS methods.” Apparently, nothing has changed in
the meantime. Nevertheless, Mayor Roberto Cenni proclaimed an official day of mourning and called
for a tougher fight against the permanent illegality in Prato.

False Labeling

The label “Made in Italy” gives a good conscience. One might think that the label stands for
good Italian fashion and products that are produced reasonably fairly and still very cheap. But the
customers are somewhat fooled and betrayed. The fact that the sweater is so inexpensive is
definitively not only because of the low-cost fiber material. The low price is up to the Chinese
companies in Prato, whose employees are working under severe and miserable conditions, as the
accident shows.

Italy has long been regarded to be a non-problematic country of production. Even the global
Business Social Compliance Initiative (BSCI) didn’t assess the EU country to be a risk nation. For
the BSCI, even after the devastating fire in Prato, Italy is not among the high-risk countries,
like some 14 other EU member states, such as Romania or Bulgaria. Strange enough, the poor working
conditions in Italy, especially in Prato, are not news to BSCI.

With the very speedy fashion industry, Asian working conditions have now arrived in Europe.
Authorities claim that a completely deregulated paradise for Wild West capitalism was generated in
Italy, which brought the so-called sweat shops into the heart of Europe.

Different Views In Prato

In the center of Prato, the second largest city in Tuscany, the recession that has afflicted
Italy for several years is surprisingly less severe than in the rest of Italy. In spite of all
these troubles, the president of the Industrial Association of Prato, Andrea Cavicchi, pointed out
that in contrast to the situation in the rest of Italy, the local economic performance has dropped
very little during the last few years. Accordingly, the unemployment rate is around 7 percent,
which is significantly lower than the national average of 11 percent.

But how is that possible in a city that in the last 20 years has lost 4,000 enterprises,
which represent half of its textile companies that employed 20,000 people? The answer is, here is
the largest Chinatown in Italy, or in Macrolotto – the large-scale industrial district of Prato,
where the majority of the approximately 3,600 Chinese apparel manufacturers are located. According
to official estimates, these companies have an annual turnover of 1.5 billion euros, of which just
more than 50 percent comes from exports.

Miserable Working Conditions

In the buildings of the Macrolotto, the apparel not only is stored but also is produced,
mostly under miserable working conditions. Experts say that the Chinese workers would be smuggled
into the country, just like the fabrics, with some help from interested parties. They work like
slaves for a pittance of one euro per hour for their Chinese patrons.

And now, for the mayor of Prato, the tragedy was predictable. He complained bitterly about
the Chinese, who don’t follow any rules, don’t pay taxes, and don’t spend any money in Prato but
send all the cash home. On the other side, they send their children to local schools and the
hospitals are overcrowded – half of all newborn babies in Prato today are Chinese. “Prato is
helplessly overextended by the Chinese invasion,” the mayor claimed. But why has no action yet been
taken?

The Chinese Way

Local government problems are said to include the lack not only of enough police officers,
but also of legal tools. The control of the Chinese is not only due to some language barriers; it
is about the Chinese starting new businesses every year or two and taking old companies out of
service, basically to escape paying taxes. According to the Chamber of Commerce of Prato, the
annual registration of new Chinese companies is close to 50 percent of all registered companies.

Hope Of Deliverance

On the other side, the repeatedly used image by Italian media of the Chinese destroying the
traditional indigenous textile industry is said to be wrong. This is also the belief of the
president of the industrialists, Cavicchi, and the local secretary of the trade union.

According to Cavicchi, a textile entrepreneur, the situation has now stabilized. Many of the
remaining 2,800 Italian textile companies with some 20,000 employees achieved an annual turnover
last year of more than 3 billion euros, which has considerably improved their capital situation and
competitiveness. Cavicchi said that those companies are dedicated to quality and innovative
fabrics, which are in high demand in Asia. He hopes that the local and the Chinese companies in
Prato will cooperate in the future and combine their respective strengths. Previous attempts at
cooperation have mostly failed. However, Cavicchi is confident “because already two Chinese
companies became members of the Industrialists association.” The last word in this Sino-Italian
melodrama is not yet spoken.

December 10, 2013

Gulf Coast Spinning To Build Cotton Spinning Plant In Louisiana

Gulf Coast Spinning Co. LLC (GCS), a new venture undertaken by the management group of Lacassine,
La.-based Zagis USA LLC, will invest $130 million to build a cotton spinning facility in Bunkie,
La. The investment will result in the creation of an estimated 290 jobs.

The facility is the second of two mills that Zagis USA announced in 2008 it would build in
Louisiana
(See ”
Zagis
USA To Build Cotton Processing Facilities In Louisiana
,”
TextileWorld.com, June 24, 2008)
. The company commissioned the first mill —
which represented a $20 million capital investment — in Lacassine in late 2009. The two mills now
represent a combined capital investment of approximately $150 million and together will generate
386 direct and 1,040 indirect jobs, according to Louisiana Economic Developoment (LED).

Following the completion of engineering and design work, GCS will begin construction in
mid-2014 of the 600,000-square-foot Bunkie facility comprising two mills — including a
ring-spinning mill equipped with 43,200 Zinser spindles that will be able to spin up to 450,000
pounds per week of value-added premium cotton and cotton/synthetic carded and combed yarns for knit
and woven apparel, and specialty denim yarns; and an open-end mill equipped with 17,280 rotors
supplied by five blending lines and 52 cards, with a weekly capacity of up to 2.5 million pounds of
cotton/synthetic and synthetic yarns.

GCS’s Bunkie facility will be four times larger than Zagis USA’s Lacassine mill, which
manufactures 100-percent cotton open-end yarns.

GCS plans to export most of its yarn, similarly to the Lacassine mill, which exports 85
percent of its spun yarn. Once the Bunkie mill is up and running, the two mills together will make
use of some 15 to 20 percent of Louisiana’s total cotton crop.

GCS plans to hire more than 200 employees by the end of 2015 and the remainder in 2016.

“Today’s announcement proves what the extensive agricultural resources of Louisiana can
produce, when combined with our state’s incomparable workforce and the investment of technology in
state-of-the-art facilities,” said Louisiana Governor Bobby Jindal. “The Zagis project in Lacassine
has shown the value of Louisiana’s cotton resources and our ability to add tremendous value to
those resources through agribusiness investments. This new cotton spinning facility in Bunkie will
bring hundreds of jobs to Avoyelles Parish and the Central Louisiana economy, providing great
career opportunities for Louisiana families for many years to come.”

December 10, 2013

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