ZURICH, Switzerland — November 16, 2011 — Only as a result of higher output in Asia in general and China in
particular global yarn production increased in the 2nd quarter of 2011 in comparison to the
previous quarter. Also global fabric production rose in the 2nd quarter due to higher output in
Asia and South America while production in Europe and North America fell. It is important to note
that production in the 1
^st quarter in China is traditionally lower as a result of fewer working days due to the
Chinese New Year holidays. Compared with the previous year, global yarn production increased
somewhat due to higher output in Asia and North America and despite lower production in South
America and Europe while global fabric production dropped with all regions suffering declines
except for South America. Global yarn stocks soared in the 2nd quarter of 2011 compared with the
previous quarter especially due to higher stocks in South America and Asia, while those in Europe
and North America remained practically unchanged. Year-on-year yarn inventories jumped, especially
in Asia and South America. Fabric stocks were up in North and South America in the 2nd quarter of
2011 as compared to the previous one, while those in Europe and Asia fell slightly. On an annual
basis fabric stocks jumped in North and South America, irrespective of slight falls in Europe and
Asia. Global yarn and fabric orders fell in Europe and Brazil both in comparison with the previous
quarter and with the 2nd quarter of 2010.

Estimates for yarn and fabric production in the 3rd quarter of
2011 in most countries is either negative or unchanged. In the 4th quarter the outlook for yarn and
fabric production improves with most countries seeing higher or unchanged output levels.

In comparison with the previous quarter, world yarn production
increased in the 2nd quarter of 2011 by +12.1%. While Asia recorded an increase of +13.9%, all
other regions recorded decreases (South America -7.3%, Europe -6.5% and North America -3.1%).
Year-on-year global yarn production rose slightly by+1.0% due to higher output in Asia and North
America by +1.8% and +0.4%, respectively, and despite lower levels in Europe (-8.3%) and in South
America (-16.3%).

Compared with the previous quarter global fabric production
increased in the 2nd quarter of 2011 by +4.4%. Fabric production rose by +5.1% in Asia and by +3.6%
in South America, but fell in Europe and North America (-1.3% and -0.4%, respectively). In
comparison to last year’s 2nd quarter global fabric production was down by -6.0%. Looking at the
various regions only South America recorded an increase (+7.7%), while North America, Asia and
Europe fabric production was reduced by -8.8%, -7.3% and -3.4%, respectively.

Yarn inventories soared worldwide by +16.4% in the 2nd quarter of
2011 compared to the previous one. In South America and Asia they jumped by +39.9% and +21.8%, but
remained almost unchanged in Europe and North America. On an annual basis global yarn stocks were
up by +21.2%. Especially in South America and Asia yarn inventories soared by +82.8% and +26.1%,
respectively, while in Europe and North America they were unchanged.

Global fabric inventories rose in the 2nd quarter of 2011 by
+8.1% as compared to the previous one. In South America and North America they jumped by +56.8% and
+9.2%, respectively, but fell in Asia (-3.5%) and Europe (-0.6%). In comparison to last year’s 2nd
quarter global fabric inventories increased by +8.1%. In South America they were up by +44.6% and
in North America by +12.9%, whereas they fell in Asia by -1.6% and in Europe by

-0.4%.

Yarn and fabric orders in Europe were slightly down by -0.4% and
-1.2%, respectively in the 2nd quarter of 2011 compared to the previous one; in Brazil they
plummeted by -30.4% and -10.5%, respectively. On an annual basis yarn and fabric orders were
unchanged in Europe but dropped in Brazil by -40.0% and -18.7%, respectively.

Posted on November 22, 2011

Source: International Textile Manufacturers Federation (ITMF)

Germany-based BASF AG has announced plans to relocate its Dispersions & Pigments division
headquarters (HQ) in Ludwigshafen to a new location in Hong Kong. The division produces pigments,
resins dispersions and additives — such as photoinitiators, light stabilizers and formulation
additives — used in the coatings and paint, adhesive, printing and packaging industries; and
realized sales of 3.2 billion euros in 2010.

The division head along with approximately 50 global personnel will transition to Hong Kong
over the year beginning January 2012. Employees not offered a position in Hong Kong will be offered
positions elsewhere with BASF. Regional business and production units based in Europe and Asia are
not affected by this change.

“Asia already is the largest market for our division today,” said Dr. Markus Kramer,
president, Dispersions & Pigments, BASF. “We want to further participate in the dynamic growth
in that region and beyond. To this end, we want to change the perspective from which we view our
customer industries. By forming a global team at an international location, we will also further
increase attractiveness of BASF as a global employer.”

November 15, 2011

Warp knitting and technical textiles equipment supplier Karl Mayer Textilmaschinenfabrik GmbH and
textile finishing machinery supplier Brückner Textile Technologies GmbH & Co. KG, both based in
Germany, report they have developed a method for continuous finishing of seamless, warp-knitted
fabric in open-width form.

Using Karl Mayer’s RDPJ and DJ machines, seamless goods can be knitted with a built-in
selvage. This selvage can then be used to hold the open-width fabric in place during heat-setting
in the tenter. Karl Mayer reports the two-bar raschel RDPJ and DJ machines can produce
variable-diameter tubular goods; goods with functional zones knit into specific areas and knit-in
seams; and decorative effects with different patterns on the front and back of the fabric or
open-work jacquard designs.

During recent trials, a Karl Mayer RDPJ 4/2 machine produced three long-sleeved shirts in a
fabric panel featuring two knit-in selvages. The fabric was comprised of 81-percent nylon and
19-percent elastane.

The new processing method offers a pre-heat-setting stage directly linked to the
warp-knitting process. According to the companies, this pre-heat-setting reduces tears, creases or
snags in the fabric; and also reduces color and elasticity variations, and fluctuating widths.

In typical relaxing and heat-setting of seamless goods, the separate tubes or stockings are
attached to a special frame prior to processsing. Brückner’s Power-Frame VNB tenter features a
perforated belt carrier that supports and transports the fabric vertically through the machine with
a gentle vibrating effect to relax the fabric and promote shrinkage in the steamer zone. According
to Karl Mayer, the VNB tenter also features: an intensive steamer with fabric relaxation on the
belt before the drying section for low residual shrinkage values; a precisely adjustable dryer with
uniform air and temperature distribution over the length and width of the fabric; short fabric
paths to reduce stitch distortion and fabric stretching; pyrometric fabric temperature control for
accurate monitoring and future reproducibility of heat-setting time and temperature; and a cooling
zone at the machine’s exit to instantly cool and condition the fabric.

The companies report the trials performed on the long-sleeved shirts showed minimal
differences between the inner and outer fabric panels with maximum variations of +/- 1 centimeter.
Maximum residual shrinkage after washing at 60°C was between 0 and 5 percent.

According to Karl Mayer, this new knitting and finishing technique offers cost savings, and
is particularly well-suited to fishnet stockings, lingerie, outerwear, sportswear and medical
textiles.

November 15, 2011