The year 2012 was historical in many ways: First of all, the common people in the street discovered
that the crisis in 2008 and 2009 didn’t impact the financial world at all. Furthermore, the euro
crisis revealed the true face of the European Union — that “the shirt of each country is closer
than the jacket.” The selfishness of some member countries culminated in severe problems, as they
warned countries that had better control over their economies “to leave us alone with our
problems.” All this shuffled the global finance markets heavily. Brave new world!

Cooperations

The textile machinery supplier market changed its face drastically. For the first time ever,
experienced people in the industry are saying that the only certain thing for the time being is the
uncertainty. It will be interesting to compare the ITMA catalogue of 2011 with the forthcoming ITMA
2015 catalogue in Milan. Some examples? In June 2012, at ITMA Asia + CITME 2012 in Shanghai, Toyota
Industries Corp., Japan, and Trützschler GmbH & Co. KG, Germany, announced their partnership to
develop, manufacture, and market combing machines.

Chinese Shopping Tour

After several takeovers by Chinese manufacturers, the announced acquisition of Germany-based
A. Monforts Textilmaschinen GmbH & Co. KG by Fong’s Industries Co. Ltd., Hong Kong, was a true
sensation. However, when the Rupp Report recently spoke to involved people, they didn’t seem to be
frightened about this new ownership.

Just one month earlier, textile community heads turned when the news arrived that Toyota
made a tender offer to acquire Switzerland-based Uster Technologies. The acquisition eventually was
carried out successfully. Also here, from talking to Uster staff, it was recognizable that the
Swiss feel very good with the new owners.

Asian Power

Another indication that the global textile map has changed was seen in Hall W1 at ITMA Asia:
For the first time in the existence of any ITMA, one company occupied one full hall alone: the
China Hi-Tech Group Corp. (CHTC). In contrast to the ITMA rules that every section of the industry
must be grouped in separate halls, CHTC assembled all its companies in Hall W1, without any
problem.

China is still the number-one country in the textile industry, but for how long? According
to the 2011 International Textile Machinery Shipment Statistics report released by the
Switzerland-based International Textile Manufacturers Federation (ITMF), worldwide shipments of
shuttleless weaving machines continued soaring in 2011 to 153,750 machines, an increase of 44
percent from the previous year’s record of 107,000. China received 128,100 looms — 83 percent of
the total; followed by India with 9,100 machines, or 6 percent; Indonesia with 2,900, or 1.9
percent; and Korea with 2,500, or 1.6 percent.

Oerlikon Becomes Saurer Again

But the sensation of 2012 was yet to come, and it happened some days before Christmas: The
Oerlikon Group sold its Natural Fibers and Textile Components business units and signed an
agreement with the Jinsheng Group of China. After a long trail, Oerlikon Textile will retake its
traditional name, Saurer. The surprise of the deal was the fact that Heinrich Fischer, the former
CEO of Saurer, is back on duty: He will be the chairman of the new group.

Positive Signs

However, in spite of the “Ponzi scheme” under which the global debts are rising
tremendously, and the fragile situation, caused — again — by financial jugglers, there are some
positive signals: As ever, the textile industry was the first to crash but also the first to spread
its wings again in the wind. And, dear readers, believe it or not, the U.S. spinning industry is
investing heavily in new equipment and even new mills.

And Edda Walraf, marketing director, Rieter Ltd., Switzerland, said last year after ITMA
Asia: “Rieter believes in Asia. This is the reason why we invested in new factories and better
market access in India and China. Volatility of raw material prices and increasing demand in
sustainability will continue to be important. Fast reaction times to market needs and new
technologies will be the key issues to stay competitive in the future. We must provide valuable
solutions, which offer a fast return on investment, ensure technological leadership from fiber to
yarn, support customers with a high level of services from making investment decisions to running
entire installations.” These words are valuable for all.

Thank You

The Rupp Report would like to express its gratitude to all its readers during the last year.
It will strive to continue to be your window into the textile industry. May all of you around the
globe continue to be active and supporting contributors to a lively and informative dialogue. Happy
New Year and thank you all.

January 8, 2013

Ventura, Calif.-based outdoor apparel retailer Patagonia Inc. has selected Sweden-based Polygiene
AB’s Polygiene® antimicrobial fabric finish for use in its Fall 2013 Capilene® base layers and
trail running base layers.

Polygiene technology is based on silver salt derived from recycled silver and offers
permanent odor control. The bluesign®-approved treatment can be applied at any stage of production
to a variety of textiles and surfaces, and can reduce the need for frequent laundering, Polygiene
reports.

“Patagonia will not sacrifice performance yet we strive to minimize our environmental
impact,” said Todd Copeland, Environmental Product Specialist, Patagonia. “Effective, long-lasting
odor control extends the useful life of our Capilene® Performance Baselayers. Polygiene meets our
strictest laboratory requirements and performs excellent[ly] in field use. As Patagonia scrutinized
odor control technology against all environmental concerns, bluesign® approval and recycled silver
were key attributes that led us to select Polygiene.”

January 8, 2013

Eastman Machine Co. — a Buffalo, N.Y.-based designer and manufacturer of manually operated cutting
machines and automated cutting systems as well as complementary software technologies — is
celebrating its 125th anniversary.

The company was founded in 1888 by Canadian inventor George Eastman, who developed the first
electric fabric cutting machine — the Eastman — by mounting a fractional electric motor to a
platform attached to a reciprocating knife mechanism. The Eastman radically changed the apparel
industry by eliminating the need for manual labor in the cutting room.

In 1898, the Stevenson family acquired Eastman Machine Co., which has remained a
family-owned and -operated business for five generations. In addition to its Buffalo headquarters,
the company operates a sales office in Hong Kong and a factory in China, and has 50 dealers
globally. Eastman currently has more than 100 machines in its product line.

“We are excited that the company has reached this milestone,” said Robert L. Stevenson,
president and CEO, Eastman Machine Co. “The company is proud to honor the outstanding contributions
of the people who have been a part of our history, and the current employees that are inspiring our
future. The continued focus on providing innovative answers to modern manufacturing needs, has
positioned the company well for the future; we plan to continue to provide reliable products,
services and solutions that benefit our customers.”

January 8, 2013

New York City-based private equity firm SK Capital Partners, in partnership with global investment
firm First Reserve Corp., has acquired TPC Group Inc. — a Houston-based producer of value-added
products derived from niche petrochemical raw materials, and a provider of critical infrastructure
and logistics services to the Gulf Coast region.

TPC Group sells its products to performance, specialty and intermediate markets such as
synthetic rubber, fuels, lubricant additives, plastics and surfactants. The company is the largest
U.S. producer of finished butadiene, which is used in Wichita, Kan.-based Invista’s nylon 6,6
production process.

TPC Group operates manufacturing facilities in Texas in Houston, Port Neches and Baytown; and
in Lake Charles, La.

SK Capital, which focuses its investments on the specialty materials, chemicals, and
healthcare sectors, has stated that “the acquisition is consistent with [our] strategy of focusing
on sectors we know well, leveraging our knowledge and relationships to identify attractive
opportunities that have complexity and underperformance relative to their potential, and employing
impactful resources to support the successful execution of our investment strategies.”

January 8, 2013

Switzerland-based specialty chemicals manufacturer Clariant International Ltd. has agreed to sell
its Textile Chemicals, Paper Specialties and Emulsions businesses for approximately $545 million to
SK Capital Partners, a New York City-based private equity firm focused on the specialty materials,
chemicals, and healthcare sectors. The sale is expected to be completed by the end of the second
quarter 2013.

The transaction includes brands and technologies in dyes, pigments, emulsions and surface
active chemicals used in textile, paper, coatings, construction and adhesive applications. In 2012,
the businesses generated combined revenues of approximately $1.3 billion, or approximately 15
percent of Clariant’s total group sales, and employed some 3,000 people in 35 countries around the
world.

Clariant is selling the businesses as part of a portfolio repositioning following its
acquisition of Germany-based specialty chemicals company Süd-Chemie AG in 2011. The strategy
includes a plan to sell five divisions by the end of 2013. Clariant reports it also is in the
process of divesting its Leather Services and Line Detergents & Intermediates business units.

“For Clariant the transaction marks a significant milestone in the execution of its
profitable growth strategy, after the acquisition of Süd-Chemie in 2011,” said Hariolf Kottmann,
CEO, Clariant. “I am pleased that we are able to execute this divestment faster than originally
expected. By the end of 2013, Clariant will be an even more profitable company than today,
generating a majority of sales in non-cyclical growth businesses.”

“We are delighted to partner with the management and employees of these businesses to build
upon their strong technology, brand, and leading market positions to more efficiently serve their
large and growing global markets and customers,” said Barry Siadat, managing director, SK Capital.
“We believe these businesses provide an attractive platform to capitalize on their overlaps in
technology, manufacturing, supply chain and logistics.

“Our goal for the businesses is to continue to innovate, deliver the highest quality
products and delight our customers globally,” Siadat continued. “Given that Clariant will continue
as a separate entity, we will change the names of the businesses. We have not decided on the new
name yet.”

January 8, 2013

Singapore-based Huntsman Textile Effects now offers two alternative softeners free of
amino-ethyl-ethanol-amine (AEEA) for use in apparel and home textile applications.

AEEA-free MEGASOFT® JET-LF-01 and Megasoft CEC-01 comply with updated Registration,
Evaluation and Authorization of Chemicals (REACH) standards and can be substituted for Huntsman’s
original Megasoft JET-LF and CEC formulations to provide the same level of performance. The new
softeners also are compatible with other chemicals used with the original softeners.

The two AEEA-free Megasoft products join SAPAMINE® CSN on Huntsman’s roster of AEEA-free
textile softeners. Sapamine CSN, introduced in late 2012, replaces Sapamine CWS.

“We have taken a proactive approach to develop these two AEEA-free alternatives to enhance
the safety of our products and are working with customers to help them make the transition,” said
Jay Naidu, global marketing director for Apparel, Huntsman Textile Effects.

January 8, 2013

Germany-based nonwovens machinery manufacturer DiloGroup reports that the year 2012 was the most
successful in its 110-year history.

Following the engineering of the 10,000th machine by Oskar Dilo Maschinenfabrik KG by the
end of 2011, the group delivered several wide-working-width production lines for geotextiles
applications. It also reported activity in other application areas including floor covering,
automotive and filtration; and delivered fiber preparation and web-forming lines to be used in the
production of hydroentangled nonwovens.

The group produced and shipped Di-Loom PMF lines weighing more than 900 metric tons, noting
that the machines are the largest in the world.

January 8, 2013

Gulistan Carpet — an Aberdeen, N.C.-based manufacturer of residential and commercial tufted carpets
— has filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code
for the Middle District of North Carolina. The company says the filing will allow it to investigate
options to sell the business to a third party or to complete an orderly wind down of its
operations.

The company has been producing carpet under the Gulistan name since 1924, although it traces
its roots back to 1818, when an Armenian textile importer established a business in Turkey. The
company began manufacturing carpet in Aberdeen in 1957, and was acquired by J.P. Stevens & Co.
Inc. in 1964. Over the last 25 years, Gulistan Carpet has undergone several ownership changes. In
addition to its headquarters and manufacturing operations in Aberdeen, the company has a plant in
Wagram, N.C.

Gulistan has been impacted by a slowdown in the residential carpet market resulting from an
extended downturn in the housing industry. According to company management, Gulistan “has been
making substantial efforts over the past few years to restructure its debts or to restructure its
business and continue to operate. The company has engaged in discussions and negotiations with a
private equity group and other companies in the industry in an attempt to sell Gulistan’s assets as
a going concern. None of these efforts have proved successful to date.”

Bank of America will provide Gulistan with a debtor-in-possession credit facility to improve
liquidity and provide working capital, and Gulistan has stated it believes it has sufficient
liquidity to operate during Chapter 11 and to continue providing goods and services to its
customers.

“Chapter 11 gives us the best opportunities to maximize the value of the Gulistan business
and its assets,” said Phillip Essig, CEO, Gulistan. “The Board of Directors, the senior management
team and I would like to express our appreciation for the hard work and loyalty of our employees.
We also want to thank our customers for their continued support and loyalty.”

If Gulistan is unable to find a buyer, approximately 395 full-time employees will be
terminated over the next four months. Specific closure dates have yet to be determined, as
different company operations would cease at different times, management said.

January 8, 2013