Woven Artificial Turf With Pile Height Of 5.5 Inches Or 14 Centimeters

Woven artificial turf is being used more and more, both in sport fields and in landscaping.

The process of weaving brings advantages that are critical to the future growth of this
market
(See Figure 1):

  • upright pile position and reduced pile cost;
  • excellent pile fixation owing to the W-weave structures;
  • good water infiltration rate;
  • ecological advantages and easy recycling; and
  • reduced installation costs.

In the normal double-face weaving process for woven artificial grass, two fabrics are woven
simultaneously and cut in the middle to obtain two equal products.

Fig1VandeWiele


Figure 1: Van de Wiele notes that the W-weave structure of woven artificial grass provides
excellent pile fixation.


Belgium-based NV Michel Van de Wiele’s SRi02 weaving machines weave with lancets up to 5.5
inches or 14 centimeters (cm) so that two artificial grass mats each with 2.75-inch or 7-cm pile
height are obtained
(See Figure 2).

However, cutting off-center can result in one fabric with extra-long pile length, for
example, 5.5 inches or 14 cm
(See Figure 3). This woven, extra-long-pile turf can be strongly stabilized with
artificial filling such as sand and rubber pellets.

Woven long artificial turf is better adapted to heavy use for a football field than shorter
artificial turf. Less maintenance will be required. Maintenance costs will also be reduced compared
to tufted turf.

The combination of woven long artificial grass and natural grass is finding its way into the
market. The artificial grass reinforces and protects the natural grass. The smooth feel of the
natural grass and the resistance added by the woven artificial grass are combined.

Fig2VandeWiele

Figure 2: Long-pile woven artificial grass of 2 x 7-centimeter pile height is woven on Van
de Wiele’s SRi02 face-to-face weaving machine.


Until now, the only commercial solution was to insert the artificial grass tufts into an
existing natural grass field.

Weaving long artificial grass offers a new and interesting opportunity for this kind of
hybrid grass surface. The combination of natural and artificial grass can be obtained with some
additional advantages:

The excellent fixation of the artificial grass is realized from the start by the W-weave
structure.

As no coating is needed to obtain the desired pile fixation, the base structure remains
permeable and open to water infiltration and root growth through the fabric.

The Van de Wiele SRi02 weaving machines produce woven artificial grass with up to 5.5 inches
or 14 cm pile height when cutting off-center. This woven turf can be combined with natural grass by
adding 4 to 5 inches (10 to 12 cm) soil or ground substrate and sowing natural grass among the
artificial turf.

Fig3VandeWiele

Figure 3: Cutting off-center on the SRi02 enables weaving of extra-long pile of 5.5 inches
or 14 centimeters.


This range of products opens up new possibilities in the market of combined artificial and
natural grass. Van de Wiele has developed a strong relationship in this field with the Textile
Department of the University of Ghent, Belgium, which has an accredited lab, the European Research
Centre for Artificial Turf (ERCAT), for testing of artificial grass.



Source: NV Michel Van de Wiele

April 17, 2012

Another Profitable Year

All signs point to improving 2012 bottom-line performance for the U.S. textile and apparel sectors.
Credit the anticipated earnings gains to a combination of factors — including some modest
improvement in consumer demand, sharply lower cotton costs, and prices that are now running
significantly higher than a year ago. A just-released forecast by Global Insight pretty much
reflects this brightening outlook. On the basic textile mill front — mainly, fibers and fabrics —
for example, analysts at this prestigious economic consulting firm see 2012 earnings jumping an
impressive 36 percent. And by 2013, another good gain is projected — with earnings rising above
levels prevailing in 2010, just before cotton quotes went through the roof. Even more significant,
this expected profit increase actually represents an improvement over the one Global Insight
presented just three months ago. At that time, a somewhat smaller 30-percent profit pickup was
being forecast for the current year. And the picture is equally upbeat for more highly fabricated
mill products like home furnishings and carpets — with solid gains anticipated for 2012 and 2013.
That’s again enough to push profits above pre-cotton-run-up 2010 levels. There’s even some good
news for the United States’ hard-pressed domestic apparel industry — with increases once again
expected to bring earning totals back above 2010 levels. In short, things are beginning to look up.
Or, put another way: There’s finally some light at the end of the tunnel.

BFgraph


Costs And Prices


As suggested above, much of the brighter profit picture just outlined can be attributed to
lower costs and firmer prices — a combination that is resulting in a diminishing cost-price
squeeze. The squeeze reached its height a year ago, when cotton, which accounts for as much as 40
percent of many clothing makers’ costs, spiraled to more than $2 per pound — more than double that
of a few months earlier. True, prices moved up in response, but not nearly enough to redress the
balance. The result: last year’s substantial profit declines. But now, the situation has improved
substantially. Cotton has returned to near its pre-run-up levels, and both textile and apparel
prices are currently running better than 5 percent above year-ago levels. More importantly, odds
are this improved scenario will continue for some time. On the cost front, for example, early 2012
cotton production reports would seem to suggest an ample supply of this key fiber. And as for
prices, while some discounting could well crop up as the year progresses, overall 2012 tags should
manage to pick up some additional small gains. Right now, for example, basic textile mill product
prices could move up another 2 to 3 percent. Factors behind this relatively upbeat price forecast
include: somewhat less competition from imports, where high costs continue to plague overseas
producers — especially in China, where double-digit pay hikes are often the norm; and better
overall demand. On the latter score, U.S. textile mill activity this year, after correcting for
inflation, looks to be up about 1 to 2 percent — making for the third straight year of small gains.


A Longer Look Ahead


Go out a few more years, and again, the outlook doesn’t seem all that bad. To be sure,
today’s basically small mill and apparel output gains may eventually peter out. On the other hand,
there’s little to suggest any further major shrinkage — certainly nothing like some of the
double-digit declines of the past decade. Global Insight’s further-out 2014-16 projections, for
example, point to only small annual production falloffs for both basic textile mill products — 3
percent — and apparel — 4 to 5 percent. And there could be some fractional gains for more highly
fabricated textile mill products over this extended period — primarily because of an expected
housing pickup at that time. All of the above are numbers the industry could live with, given both
an improved cost-price structure, and the continuing development of new, improved and more
profitable niche products that should be coming on stream over the next few years. All this shows
up in Global Insight’s newly revised profit projections for this period. In all three subsectors,
earnings are expected to remain the same or even move slightly ahead of those projected for 2012
and 2013. True, such more-distant forecasts are always more iffy than those made for the next year
or two. But statistically speaking, based on all of today’s available information, they point to
the most likely results. And no matter how you slice it, that’s a positive sign.

April 2012

Textile Printing In A More Sustainable Way

Like any industrial process, textile printing requires raw materials, consumes energy and produces
waste. Nonetheless, there is considerable scope for reducing the impact of the process and helping
ensure it is carried out in a more responsible and sustainable way.

At Stork Prints BV, the Netherlands, activities to reduce the impact of the printing process
fall generally into five distinct categories: more sustainable consumables such as screens; greater
process efficiency; longer equipment lifespan; adherence to strict legislation; and fundamental
research and development (R&D) into sustainability-related issues. Following is a look at each
of these categories.


Cleaner Consumables


Any advances Stork Prints makes in the production and use of its screens can have a
significant impact because of the screens’ widespread use. There are three main areas in which
these screens differentiate themselves.

First of all, the lacquer used to coat the screens is chrome-free, so there’s no
contamination possible from this potentially hazardous material. Secondly, the holes in the
company’s NovaScreen®, which is made out of nickel because of its hardness, are also of a special
shape and size, so there’s less mechanical force required to push the printing paste through onto
the substrate. A major advantage of this unique feature is that considerably less nickel is
deposited on the textile being printed because there is less wear and tear. The screens also last
longer as a result.

In addition, the company has installed sophisticated wastewater treatment systems in its
screen production facilities throughout the world. In this way, regardless of whether the screens
are manufactured in countries such as the Netherlands, China, India, Brazil or the United States,
the water required during the process is carefully collected, purified and then used again.


More Efficient Printing Processes


Stork Prints has taken a number of measures in the design of both its conventional and its
digital printing machines to ensure reduced usage of energy, water and paste or ink.

  • Energy: An average printing line has a nominal power rating of approximately 75
    kilowatts, most of which is required for the drying process. A relatively high temperature has to
    be maintained inside the drying chamber, and the various vapors emitted as the textile dries have
    to be extracted. The company’s drying systems use a radial extraction technique that removes
    moisture while leaving more warmth in the chamber. This technique uses approximately 25-percent
    less energy than conventional systems, and also means customers can produce more quickly because
    the process is faster.
  • Water: The company uses recycled water to rinse the pumps and the printing
    blankets in its systems. In this way, water use is reduced by 65 percent – typically, to only 1.5
    cubic meters per hour (m3/hr) at 50-percent efficiency, compared to the 4 or 5 m3/hr consumed using
    certain other machines.
  • Paste: At the end of a printing run, there are still approximately 6 liters of
    printing paste in the system, predominantly in the tubes that run between the paste reservoirs and
    the screens. With most non-Stork Prints systems, this paste is simply rinsed out and flushed down
    the drain. But Stork Prints makes sure that around 80 percent of the printing paste is fed back
    into the reservoir.


Urea-free Printing


Reactive printing techniques are often used during the production of fashion textiles to
obtain more vivid colors. These techniques necessitate the use of urea for pre-treating the fabric
and in the printing paste. Urea produces carbon dioxide (CO2) during the steaming process, and also
has to be washed out of the fabric.

With Stork Prints’ Eco Foam Unit, there is no need for urea. Instead, special foam is used
to impregnate the fabric. This process maintains – and in some cases even improves – the fabric
color characteristics, produces less CO2 and requires a minimum amount of water. Because the fabric
doesn’t get so wet, the drying time and amount of energy required are reduced by approximately
half. Even the time required for steaming is 30- to 40-percent shorter, which also results in
energy savings.

StorkPrints

NovaScreen®: Stork Prints’ NovaScreen® rotary screens are made from nickel and combine a high
mesh count with minimum spacing between holes that are wider than holes on conventional screens,
resulting in lower paste usage and higher printing speeds as well as lower squeegee pressure, which
minimizes wear and provides sharper print results.



Using Water Instead Of Chemicals


To give another example, very aggressive acids typically are used to remove the lacquer from
screens after use, particularly in the Far East. This practice isn’t good for the environment, nor
is it good for workers exposed to these chemicals. Stork Prints’ processes, in comparison, use
high-pressure water.


Substantial Savings Through Digital Engraving


There are also several sustainability-related advantages of direct laser (digital)
engraving. The turnaround time for screens is much shorter – typically only 15 minutes for the
company’s bestLEN, which means less energy is required. It also saves water; when using traditional
wet processes like digital wax or ink, screens have to be developed immediately after exposure,
which requires approximately 250 liters of water per screen. This is no longer necessary with Stork
Prints’ direct laser engraving.


Longer Equipment Lifespan


One of the most crucial contributions you can make as a capital equipment manufacturer is to
ensure that your products remain productive for as long as possible. Stork Prints provides
maintenance and spare parts for its printing machines for at least 20 years, and there are numerous
examples from around the world of its RD4 and RD3HD machines that are more than 35 years old and
still going strong – and still receive the company’s ongoing support and service.


Conforming To Strict Legislation


With Europe renowned for its strict environmental legislation, the company is subjected to
stringent and regular checks. In the Netherlands, for example, its screen production processes are
regularly audited by various organizations such as the fire brigade, the regional environmental
bureau, and health and safety. Worldwide, Stork Prints always makes a point of conforming to the
local regulations or its own internal standards, whichever are higher.


Ongoing Research To Further Reduce The Impact


The company also carries out fundamental R&D in a number of areas. For instance, even
though the levels of nickel and chrome in its screens are well below the permitted concentration
levels, alternatives are nonetheless under investigation so as to eliminate these potentially
hazardous substances altogether. The company is also working on screen-stripping concepts that
don’t require any chemicals. And, in addition to seeking constant improvement in its own
activities, Stork Prints also encourages its customers to adopt more socially responsible
manufacturing practices.


Joost Smits is managing director, Textile, and Geert Klaassen is consumables manager at Stork
Prints BV, the Netherlands.


April 17, 2012

Spinners Search For Business; Pricing Pressures Remain

The first quarter of 2012 was well below the hopes and expectations of many spinners.

“We’ve been really disappointed in the activity for the first part of the year,” said one
Carolinas spinner. “There was a spike earlier in the year — a very brief one — that gave us hope
that things were turning back around. But it was very short. Since then, orders have been very slow
and very small.”

Another spinner said: “At first, we thought the whole industry was going through an inventory
adjustment. Last year was so wild, and many customers took positions well beyond their needs just
to make sure they would have product when they needed it. I think many of us expected a time when
everything would adjust. There would be a slow period while all of this excess inventory was
cleared, and then business would get back to normal. But, it still hasn’t recovered, and we are
past the time I would have thought it would take for an inventory adjustment.”

A yarn broker who buys and sells in the United States and Central America said he has noticed
increasing competition from Asian suppliers. “Last year, companies from China, India, Pakistan and
other eastern nations were caught up in the same raw material shortages that affected us here in
the Western Hemisphere,” he said. “As a result, they focused more on making sure they could meet
the needs of their domestic markets. Now, with raw material prices and availability back to about
where they were before the spike, these companies can be more aggressive in pursuing business over
here.”

As bad as demand is in the United States at the moment, it’s even worse in Central America,
said one multinational spinner. “There really isn’t anything coming in right now. We went from
running flat out and losing ground in our production schedules to the point now where we are
scurrying around for any business we can find.” Customer credit remains a big issue in Central
America, he said. “A number of customers are in need of product and would buy it, but they cannot
get the financing.”


Said another spinner: “We’ve been in the fortunate position in the past of being able to
extend credit ourselves to some of our customers that could not obtain traditional financing.
However, when retail sales fall flat and there is tremendous pressure on margins, you have to be a
lot more careful. Any number of companies have fallen by the wayside by overextending in this
fashion. So we are trying to make sure we err on the side of caution.”


Cotton Prices Continue To Plummet


Price continues to be an issue and, as one yarn broker noted, will continue to be “as long as
some spinners have an inventory of raw cotton that was purchased at a cost significantly above the
current market price.” As a gauge of how fast and far prices have fallen, the U.S. Department of
Agriculture reported for the week ending April 12, 2012, that spot market quotations for the base
quality of cotton in seven designated markets had fallen to 83.88 cents per pound. That price is
more than 110 cents per pound less than the corresponding week of 2011.

“We keep trying to balance our prices with what we think the market will bear,” said one
spinner. “But things have been all over the place for the past nine months, so it’s a constant
struggle right now.”

Added another: “We have been able to pass through some of our costs, but we just haven’t been
able to do it as consistently as we would like. Customers look at what you are asking and then look
at the current cotton prices. It’s just a battle.”

“It’s easier when you’re pricing a new product for a customer,” said one spinner. “But, when
you try keep prices up with existing customers, who have ridden out the volatility with you, there
tends to be a lot of resistance. We tell them that our prices didn’t go up as quickly as the price
of cotton last year, and that it is now going to take a while for them to come back down.
Eventually, we will reach that equilibrium point. But we are not there yet.”

Dow Unveils New Lab-Scale Equipment At The Performance Plastics Innovation Center

HORGEN, Switzerland — April 5, 2012 — In line with the Company’s commitment to innovation, Dow
Europe GmbH (“Dow”) has announced today enhanced formulation and testing capabilities at the
Performance Plastics Innovation Center at Dow’s European Headquarters in Horgen, Switzerland. 
Responding to extensive growth in the use of elastomers for adhesives and flexible membranes, Dow
has invested in new lab-scale equipment at the Center which will help accelerate technical
developments in these key market segments. Among the new lab capabilities is the installation of a
hot melt adhesive coating and lamination unit and a direct extrusion line for flexible
membranes.   “The Performance Plastics Innovation Center will now house some of the
industry’s most advanced testing facilities for our products in adhesive and flexible membranes,”
said Pierre Burelli, EMEA Commercial Director, Dow Elastomers. “We see our lab as an extension of
our customers’ technical capabilities. We have the ability to develop and test products
simultaneously with them, and, in some cases, we can offer our lab to customers who may not have
these testing capabilities in-house.”

Dow Elastomers will host an Open House event at the Innovation Center in Horgen on April 12,
giving customers, suppliers and other key industry stakeholders a chance to see the new technology
first hand.  Specialists from across Dow will showcase the advanced capabilities of the site
and representatives from Nordson Engineering, Eastman Chemical Company, BASF, Albemarle and
KraussMaffei Berstorff will give presentations on their technologies for these applications. The
new equipment includes:

    * Nordson Coating and Lamination line designed to help evaluate the
processing performance of hot melt adhesives and to prepare samples for adhesion testing.  Key
applications are in health and hygiene, such as non-woven top sheet and back sheet lamination, roll
goods and pressure sensitive adhesives.

    * Co-rotating twin-screw extruder (25mm) combined with a flat-slit die and
three-roll calender for direct extrusion of flexible membranes. Key applications include roofing
and waterproofing membranes, flooring, automotive skins, noise vibration dampening and artificial
leather.

“This application-dedicated equipment offers capabilities that will help us develop solutions
faster based on Dow polymers which address specific market criteria and industry demands. For
membrane applications, we now have the ability to produce real life structures, to demonstrate the
highly flexible performance of solutions based on VERSIFY™, ENGAGE™ or INFUSE™ Elastomers from Dow
and test against some of the most stringent of industry standards like fire performance,” said Kurt
Kronawittleithner, EMEA R&D Leader, Dow Elastomers. “In addition, for hot melt adhesive
applications our new testing equipment can be used to determine overall performance on a variety of
substrates with multiple application modes, demonstrating the powerful bonds you can achieve with
AFFINITY™ GA and INFUSE™ Elastomers.”

Dow offers a broad portfolio of Elastomer resins that address some of the specific
performance requirements and industry standards for adhesives and flexible membranes.  Hot
melt adhesives based on AFFINITY™ GA Polyolefin Elastomers and INFUSE™ Olefin Block Copolymers
(OBCS) can offer powerful bonds, increased sealing mileage, broad temperature range performance,
exceptional color stability and virtually char- and odor-free processing.  For producers of
flexible membranes, VERSIFY™ Plastomers and Elastomers, ENGAGE™ Polyolefin Elastomers and INFUSE™
OBCS can offer ease of processing, high flexibility and remarkable welding properties in addition
to meeting critical fire performance in roofing and other building applications.

Posted on April 17, 2012

Source: Dow Europe GmbH

Lectra And WGSN Sign Global Partnership Agreement

PARIS and LONDON — April 3, 2012 — Lectra, the world leader in integrated technology solutions
dedicated to industries using soft materials — textiles, leather, industrial fabrics and composite
materials — and WGSN — the world’s leading trend forecaster — are pleased to announce a new global
partnership.

Several events to unveil the partnership are planned over the next few months, starting with
London in May.

For many apparel and fashion companies, trend research and design development often don’t
work together as closely as they should, nor are they fully integrated with the rest of the product
development process. A process gap occurs as a result, meaning teams can’t leverage coherent
creative, technical, and production knowledge across the development cycle.

Lectra and WGSN stress that the best way to bridge this gap is with more open and efficient
information sharing made possible by a strong foundation of technology and expertise. Together, the
two companies will offer best practices to build a more streamlined and collaborative workflow
between trends, design, and development.

“As market-leading brands in our respective sectors, WGSN and Lectra are natural partners. As
the many customers we share know, WGSN and Lectra have a common mission-to improve efficiency
through innovative technology systems and inspiration-right across the product development cycle.
But this partnership isn’t just about shared values. Together it will enable WGSN and Lectra to
deliver uniquely powerful and exclusive new content and technology tools that will add value for
current and future customers of both businesses worldwide,” says Julie Harris, WGSN Global Managing
Director.

Engaging the production knowledge found within most teams to tighten concept and design
development means leaner design, fewer production issues, and an overall faster time to market.



Lectra-WGSN Starter Pack: straight from trend to actionable design

WGSN and Lectra customers can look forward to an Autumn Winter 2013/2014 Womenswear Starter
Pack to be released in May. WGSN will edit macro trends from their AW 13/14 selection to use as the
basis for key looks.

Lectra will develop WGSN’s color and textile inspirations into a complete design package,
including mood and presentation boards; printed, woven, and knitted fabrics; colorway suggestions;
seasonal palettes and production-ready spec information. To really give designers an advantage,
Lectra will also develop flat pattern blocks and 3D prototypes for key looks.

“Design and development have to be efficient from step one,” says Anastasia Charbin,
Marketing Director, Fashion at Lectra. “A production-ready trend and design pack, complete with
patterns and virtual 3D prototypes, gives designers and product developers an enormous advantage.
The ability to visualize style, patterns, color, and texture in 3D cuts their workload enormously.
Having all the technical information behind the creative work means fewer errors when it comes to
production,” she adds.

Starter packs will be a combination of anything from jackets to trousers to dresses.

WGSN subscribers and Lectra customers will then have access to the style-packs, which are
ready for use in Lectra Solutions right away. All designs and 3D virtual prototypes can then be
adapted to express a unique brand identity. With these essentials in hand, design and trend teams
will be able to hit the ground running immediately.

Womenswear trend packs are already available, with a menswear pack in development, and
subsequent seasons as the calendar rolls on.

After the London event on May 2, a second event will take place in New York in July, followed
by Shanghai in the autumn to reveal new trends and their corresponding WGSN/Lectra Starter Packs.
The partnership events are by invitation only.

Posted on April 17, 2012

Source: Lectra

Manufacturers Chemicals LLC Adds EcoWet To EcoCare Products

CLEVELAND, Tenn. — April 9, 2012 — Kevin Hrebenar, Executive Vice President of Manufacturers
Chemicals, announced the introduction of EcoWet 65 as an addition to the EcoCare Family of Products
introduced last year.

EcoWet 65 is a new type of “Hybrid Surfactant” that can replace traditional
Dioctylsulfosucconate chemistry, or ethoxolated alcohols using dramatically lower solids.  The
material has lower BOD and COD, lower foam, and lower VOC than the products it replaces. 

Kevin stated, “because we are exchanging performance for solids, the environmental impact is
comparable to cutting the chemical use in half.  We have the ability to tailor this product to
specific uses and improve the environmental profile in many cases.”



Posted on April 17, 2012

Source: Manufacturers Chemicals

Picanol Group Announces The Passing Of Emmanuel Steverlynck

YPRES, Belgium — April 16, 2012 — The Board of Directors, the Management Committee and all of the
employees of the Picanol Group would like to express their deep sadness following the passing away
of Mr. Emmanuel Steverlynck.

Emmanuel Steverlynck was born in 1922. He was the second son of Charles Steverlynck
(1888-1984), who founded Picañol in 1936. In 1952, Emmanuel took over the commercial management of
the company and the sales of Picañol weaving machines. Under his leadership and with the help of
his father Charles and his brother Bernard Steverlynck (1920-1976), the company overcame all of the
difficulties of the early years and became a world player. Familiar with the world of textiles
thanks to the family weaving mills in Vichte, and blessed with an enormous commercial talent,
Emmanuel succeeded in building up a worldwide sales organization and thus truly putting Picañol on
the world map.

As an Honorary President of our group he remained connected to the company, its employees and
its customers until the very end.

steverlynck

Emmanuel Steverlynck

Emmanuel Steverlynck passed away on Saturday morning at the age of 89. The private funeral
service will take place this week. On Saturday 28 April at 10.30 am, there will be a memorial
service in the cathedral of St. Martin and St. Nicholas in Ypres.

The Board of Directors, the Management Committee and all employees of the Picanol Group in
Belgium and abroad offer their sincere condolences to the Steverlynck family.



Posted on April 17, 2012

Source: Picanol Group

The Rupp Report: Compliance – The Underestimated Necessity

The term “compliance” is associated with the U.S. financial sector and affected areas of high risk
with reference to insider trading and conflicts of interest. In Germany, compliance structures have
been developed since the 1990s due to legislative requirements that apply to all the banks and
insurance companies.

In Accordance With Established Guidelines

Compliance has been defined as “either a state of being in accordance with established
guidelines, specifications, or legislation or the process of [implementation].” As a legal concern,
compliance generally refers to behavior as it conforms to legislative provisions, such as those of
the Sarbanes-Oxley Act (SOX) of 2002.

Compliance in a regulatory context is an important issue for businesses, perhaps because the
number of regulations is increasing and companies often do not understand what they must do to be
in compliance with new laws. For example, SOX was passed to protect shareholders and the general
public from accounting errors and fraudulent practices such as those carried out by Enron and
WorldCom. As corporate managers have become more and more concerned with compliance issues,
businesses have begun using specialized software, consulting with compliance experts, and even
instituting a new corporate position of chief compliance officer (CCO).

Meanwhile, compliance structures and processes, developed in response to increasing
regulatory requirements for listed companies, are helping industrial companies prevent specific
business risks. The Compliance Department also covers the ethical conduct of a company’s own
compliance and other non-statutory regulations. On financial markets, compliance can build
confidence for the capital markets and their participants. Insider trading should be prevented.
Should be!

A Must For Stock Listed Companies

Large corporations take compliance issues very seriously — especially since some of them
were involved in costly corruption issues. In 2006, it was revealed that Siemens AG was keeping
black accounts — that is, an alternate set of books under the table. Employees of the industrial
group corrupted business partners in order to win contracts. When this news emerged to the public,
Siemens had to pay a high price: The forfeits in the United States and Germany amounted to 1.2
billion euros. The damage to the company’s image was huge, too. Siemens learned its lesson:
Hundreds of employees are now working in the compliance department.

Big Textile Companies Involved

In the meantime, compliance standards also have reached the textile machinery manufacturers.
For example, both big Swiss textile machinery producers — Rieter Management AG and OC Oerlikon AG —
are working strictly according to compliance rules or to the so-called “code of conduct.” In
Rieter’s annual report, it is mentioned that “Rieter revised its Code of Conduct in the year under
review (2011), taking into account customers’ current requirements and the OECD [Organisation for
Economic Co-operation and Development] guidelines for companies operating internationally. The code
of conduct remains an integral part of the contract of employment. Members of top management were
again examined in the year under review. In this way Rieter ensures that all those in positions of
leadership are also familiar with the principles of conduct and communicate them to their
employees.”

On the other hand, the Oerlikon Group mentions in its annual report for 2011 that “the basis
of the Group’s compliance program is the Oerlikon Code of Conduct introduced in 2009. The code
serves as the compass for our employees, pointing the way to responsible, ethically and legally
proper behavior in their everyday business dealings.

“Oerlikon undertook extensive steps in 2011 to further integrate compliance into its
corporate culture and business processes. An important addition to our current policy is the new
whistle blowing hotline — which was set up early in the year to serve as an additional reporting
channel for potential irregularities. … [Four hundred] managers received comprehensive ethics
training as part of a Group-wide program, the main goal of which was to increase awareness and to
teach the correct approach when facing this compliance risk. The training was focused on
international and regional anti-corruption regulations and on Oerlikon’s own anti-corruption
policy.”

Suppliers Are Involved

The compliance rules of the big companies extend increasingly to their suppliers. As
Oerlikon states in its 2011 report: “To further increase the transparency of Oerlikon’s working
relationships and minimize potential third-party compliance risks, a process for business partner
due diligence was introduced in 2011. Under this process, an exhaustive integrity review is
conducted before Oerlikon enters into business relationships with third parties. The results of
these comprehensive background checks are carefully reviewed and form the basis of Oerlikon’s
decision to enter any working relationship.”

More Efforts Necessary?

It is understandable that company executives don’t like the issue of compliance. Too much
work, they say. However, compliance specialists warn strongly not to underestimate the risk of
violations of law. Thus, for example, the risk to get into a bribery scandal has increased
tremendously. Especially the United States and the United Kingdom have issued sharp anti-corruption
laws.

Consequences

Coming back to textiles, Oerlikon further writes: “All alerts [undertaken by Oerlikon] are
carefully examined. Should any allegations be substantiated, a thorough investigation will be
launched. The focus of such an investigation is twofold: first, to identify and correct wrong doing
and, second, to uncover possible weaknesses in processes or organization and to introduce
improvements.”

As a consequence, in 2011, the company reported taking disciplinary steps in five compliance
violation cases: “[Seventeen] alerts to potential compliance cases were received through the
various reporting channels in 2011 — five more than in the previous year. … These actions
included letters of reprimand, dismissals and, in one case, charges against a former employee.”

To summarize these entire costly activities, one could say what many fathers have told their
young children: “Behave!”

April 10, 2012

NAT Signs CRAiLAR® Development Agreement With PVH Corp.

Vancouver, Canada-based Naturally Advanced Technologies Inc. (NAT) — a developer of sustainable
biomass resources from flax and hemp, and provider of CRAiLAR® enzymatic technology for processing
bast fibers — reports it has entered into a short-term Crailar Flax fiber development agreement
with New York City-based apparel company PVH Corp. under which PVH will evaluate the fiber for use
in dress and sports shirt lines including Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW and
Bass.

PVH has stated in its corporate environmental policy that it is working to minimize the
environmental impact of its business units and operational activities — specifically in regards to
waste management, energy reduction, water usage and elimination of harmful substances — and is
looking to partner with vendors that have the same sustainability commitments.

The Crailar process converts bast fibers into materials that are as soft as cotton but more
durable and eco-friendly, according to NAT. These bast fibers can be blended with cotton and other
fibers; and can be processed using existing spinning, weaving, knitting or other fabric-forming
processes. NAT states that Crailar’s manufacturing process typically enables partner brands to
significantly reduce water and chemical usage at both the agriculture and manufacturing stages, and
it also reduces shrinkage.

“We are excited about the prospect of integrating this new all-natural fiber into our
products,” said Emanuel Chirico, chairman and CEO, PVH Corp. “We enter this agreement with the
belief that Crailar can move us closer to our goals of progressive environmental standards,
including responsible water usage overall, and significant reduction in hazardous chemical waste in
water, air and inputs from farmland to finished products.”

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