This year, the world-famous summit of the man-made fibers industry is celebrating its 50th
anniversary. From Sept. 14 to 16, 2011, the global community of the man-made fibers industry will
gather at the 50th Dornbirn Man-made Fibers Congress (Dornbirn MFC) in Dornbirn, Austria, in the
state of Vorarlberg near the Swiss border to hear news about the latest research and development,
new products and applications for man-made fibers and related industry sectors.

The Future Of Man-made Fibers

The main subject of the congress concerns communicating the future of man-made fibers. And
the future of this industry sector, mainly in the West, is quite questionable because the
production sites of the global man-made fibers industry have changed drastically:

In the latest edition of Oerlikon Textile GmbH & Co. KG’s “The Fiber Year” report, the
global production of staple and filament man-made fibers is recorded at 65.9 million metric tons,
of which China produced 45.8 million metric tons or 70 percent. India is in second place,
accounting for 6.1 million metric tons, some 9 percent. And even third place is in Asian hands —
namely, Pakistan.

Having this in mind, it is no surprise that the Dornbirn MFC is being held under the umbrella
theme: “Man-made Fibers — the Next 50 Years.” Most of the papers will be dedicated to future trends
and developments.

The past 50 years of the Dornbirn MFC will be highlighted also in a plenary session
presenting different speeches, including one by the former director of the Saxon Textile Research
Institute, Chemnitz, Dr. Hilmar Fuchs, who knows the story of the congress very well.

Other topics will be quite interesting. One panel discussion will cover the reduced
availability of natural fibers and the consequences for man-made and artificial fibers such as
viscose.On the opening day, Friedrich Weninger, Lenzing AG, president of the Austrian Man-made
Fibers Institute, will give a speech, followed by the usual welcome addresses from local
politicians. A presentation by the European Man-made Fibers Association (CIRFS) will cover future
man-made fibers industry developments and the challenges for professional organizations in this
sector of the textile industry. Another interesting paper will be presented by the Hamburg
University of Technology, Institute of Environmental Technology and Energy Economics, Germany,
discussing possibilities and challenges of biomass for nourishment, raw materials and energy.

100 Presentations

Around 100 individual lectures will be given in all. Main issues in the different panels
include:

• new fiber developments;
• functional fabrics including sports and leisurewear, and medical textiles;
• fibers for industrial/technical fabrics;
• sustainability;
• finishing; and
• European Union research projects.

Furthermore, leaders from various institutes, associations and businesses will discuss future
developments and research projects in their respective organizations.

From September 12 to 16, viscose producer Lenzing will present a workshop in Vorarlberg which
will attract some 900 major customers worldwide.

Close To ITMA Europe In Barcelona

Unfortunately, as has happened before, the Dornbirn congress is one week prior to ITMA
Europe, which will open September 22. Various interested parties and individuals have expressed
their disappointment about this timing. However, the congress organizer, the Austrian Man-made
Fibers Institute, is quite optimistic that more than 700 visitors from more than 30 countries will
attend the jubilee edition of the man-made fiber industry summit. Let’s hope they’re right.

July 19, 2011

Vancouver, Canada-based Naturally Advanced Technologies Inc. (NAT) — provider of CRAiLAR® enzymatic
technology for processing bast fibers — is making progress in its quest to expand its flax
cultivation capabilities in South Carolina.

The company has contracted Pamplico, S.C.-based Carolina Eastern Precision Ag to help it
recruit growers and contractors and provide advice related to NAT’s flax cultivation. First-year
plans call for contracting cultivation of more than 15,000 acres of flax as a winter crop — with
the harvested flax used first to supply Crailar Flax to Winston-Salem, N.C.-based HanesBrands Inc.
under a purchasing agreement announced earlier this year. NAT expects to have a production capacity
of 300,000 pounds of Crailar Flax weekly at a facility it plans to build by first-quarter 2012 in
Williamsburg County in the Pee Dee area of South Carolina.

“This announcement is a culmination of a two-year process that took a significant amount of
effort from South Carolina’s Department of Commerce, the USDA-ARS  [U.S. Department of
Agriculture’s Agricultural Research Service], Williamsburg County, and HanesBrands,” said Jason
Finnis, founder and COO, NAT. “We are confident in the experience and relationships that Carolina
Eastern brings to our team, and we anticipate that their team’s knowledge of the region, from both
the agronomic and economic standpoints, will allow us to quickly and smoothly ramp up production
demand to bring Crailar Flax to market.”

“Crailar Flax fiber is one of the most well-researched agronomic opportunities we’ve seen in
South Carolina in my entire career,” said Charles “Russell” Duncan, a former agricultural extension
agent with Clemson University and current chair of the International Certified Crop Adviser board,
who will head up Carolina Eastern’s activities covered by the agreement. “We are excited about the
opportunity we will be presenting in coming months and hope for a long-term opportunity to be
established among farmers looking for winter crop alternatives.”

In the course of a pilot program in which NAT worked with the USDA-ARS and HanesBrands, the
company identified flax varietals that provide optimal fiber yields for winter cultivation.

“As a winter crop, we found that South Carolina offers significant upsides to growing
varietals of flax that are needed to produce Crailar fiber,” said Dr. Jonn Foulk, a USDA-ARS
research scientist, who worked with NAT in the pilot program. “The climate is ideal, the
fertilization and weed control are minimal and the winter rainfall provides adequate irrigation.
Additionally, production in the southeastern U.S. has the potential to enhance rural economic
growth and to supply a natural domestic source of fiber to industries.”

July 19, 2011

Last week, the Senate Finance Committee and the House Ways and Means Committee held mock markup
sessions for free trade agreements (FTAs) between the United States and Colombia, South Korea and
Panama. Both committees approved the pacts, which were signed in 2006 and 2007 and are expected to
be submitted by the Obama administration for congressional approval in the near future, but there
is partisan disagreement regarding the issue of whether or not to include within the U.S.-Korea FTA
(KORUS) extension of Trade Adjustment Assistance (TAA) for workers, businesses and farmers impacted
by increased trade.

TAA was created in 1962 and subsequently amended in 1974 and 2002. In 2009, the program was
further expanded as part of the Recovery Act, and the 2009 provisions expired in February of this
year. In negotiations involving the Obama administration and House and Senate leaders to extend
TAA, provisions have been reduced to 2002 levels and in some areas have been reduced even below
those levels, with complete expiration of the program slated at the end of 2014. Democrats in
Congress want to tie the extension to KORUS, while Republicans want TAA to be treated in separate
legislation.

At the same time, there is widespread bipartisan support for the three FTAs, which are seen
as instruments to increase U.S. export trade, and leaders of both committees have warned that while
the United States delays implementation of these agreements, the U.S. jobs they purportedly will
create will go instead to workers in other countries and regions that have signed FTAs with these
countries — most notably, the European Union, which has just implemented a FTA with South Korea;
and Canada, whose FTA with Colombia will be implemented in August.

The Senate Finance Committee, with its Democratic majority, approved the agreements with the
inclusion of the TAA extension in KORUS; while the House Ways and Means Committee, with its
Republican majority, approved them without the TAA extension, and there was no provision made for
moving TAA forward. Votes in both committees were divided along partisan lines. At present, it is
not clear whether the House will ultimately support the Obama administration’s objective of
presenting a package for approval that includes both the FTAs and TAA.

The U.S. textile industry has issues with KORUS but supports the Colombia and Panama pacts.
The National Council of Textile Organizations (NCTO) has been quite vocal in its opposition to
KORUS, charging that rather than creating jobs in the textile and apparel industry, that FTA will
destroy jobs — as many as 40,000 jobs directly and indirectly tied to textiles and apparel, but
also 159,000 jobs overall — because U.S. and Korean textile products are not treated equally under
the agreement and the removal of certain textile enforcement measures will enable significant
illegal transshipments of Chinese-made goods.

“It is disconcerting that at a time of economic uncertainty that the U.S. Congress is
choosing to move forward on the Korea FTA which is a flawed trade agreement that will cause
significant jobs losses in the U.S. textile and apparel sectors,” said NCTO President Cass Johnson.
“Our industry is one of the few that has continued to add jobs over the last year. The Korea FTA
puts these jobs and future jobs in serious jeopardy,” he said, referring to the 2,500 direct and
7,500 indirect jobs created in the sector in the last year.

“We urge members of Congress who are concerned about textile jobs in their districts to vote
‘No’ on this agreement,” Johnson added.

U.S. retailers and importers have a slightly different viewpoint regarding KORUS, and both
the National Retail Federation (NRF) and the American Apparel & Footwear Association issued
statements supporting all three FTAs and urging quick passage of legislation that would implement
them.

“Making it easier for U.S. companies to export their goods overseas creates U.S. jobs,” said
NRF President and CEO Matthew Shay. “That puts more spending power into the hands of American
families and increases consumer demand in a way that is a win-win for both the United States and
our trading partners. Congress needs to complete work on this legislation and allow these
agreements to take effect as soon as possible to let our business and workers begin to benefit from
their provisions.”

Shay further noted that approval of these FTAs “will break a logjam on trade legislation in
Congress that has blocked a number of other important trade bills from moving forward,” mentioning
in particular renewal of the Generalized System of Preferences program. “We are hopeful that
Congress is ready to become fully engaged on trade and will work aggressively to further expand
trade opportunities and make it easier for retailers to import merchandise to meet U.S. consumer
demand,” he continued.

“The U.S. apparel and footwear industry is able to maintain its competitive edge in the
global marketplace when we reduce barriers to trade,” said AAFA President and CEO Kevin M. Burke.
“Along with the passage of the pending free trade agreements, we look forward to immediate and
retroactive renewal of the Andean Trade Preferences Act (ATA), the Generalized System of
Preferences (GSP), and Trade Adjustment Assistance (TAA). Creating certainty and opportunities for
growth will enable our industry, and the more than one million U.S. workers we employ, to continue
delivering quality, safe, and affordable clothing and shoes to hardworking American families.”

July 19, 2011

Faribault, Minn.-based Faribault Woolen Mill Co. — a vertically integrated manufacturer of woolen,
cashmere, Ingeo™ and other woven goods for the retail, hospitality and healthcare industries as
well as private-label manufacturing — has been purchased by former Dairy Queen International Inc.
CEO Chuck Mooty and his cousin and business partner Paul Mooty.

Established in 1865, Faribault Woolen Mill is Minnesota’s oldest manufacturing company and at
one time was the largest manufacturer of wool blankets in the United States. The Mootys have
acquired the mill, which was shuttered in July 2009, with the hope of re-establishing viable
production of wool products in the United States, and particularly Minnesota.

“This is a story about the revival of American excellence,” said Chuck Mooty. “The art of
manufacturing textiles should be retained by our country, particularly during a time when our
economy is so challenged with unemployment.”

Chuck Mooty will serve as president and CEO of Faribault Woolen Mill, and Paul Mooty will
become CFO. Chuck Mooty’s son, John Mooty, will head the company’s marketing department, and
additional family members are expected to take on other company responsibilities. The company also
plans to add more employees, including former Faribault Woolen Mill workers.

Production at the mill is expected to resume in August. The Mootys are currently assembling
their in-store and online retail services, and will market and sell product through hospitality,
health care, government and specialty design channels.

“We have a challenge in front of us to make this company relevant and economically viable,
but that is the beauty of this undertaking,” Mooty said. “What a fun challenge to rejuvenate a
community, a piece of history, a slice of a domestic industry and execute in a way which brings
pride, employment and fulfillment back into the lives of so many.”

July 19, 2011

The Institute of Environmental and Human Health (TIEHH) at Lubbock, Texas-based Texas Tech
University (TTU) has received a $1.1 million research award from the U.S. Army Research,
Development and Engineering Command to continue funding the Admiral Elmo R. Zumwalt Jr. National
Program for Countermeasures to Biological and Chemical Threats. The funding enables researchers at
TIEHH, TTU and the TTU Health Sciences Center to further enhance and leverage technologies that
Zumwalt researchers have developed, including the Fibertect® nonwoven decontamination wipe, which
has received $90,000 for one year.

Fibertect was developed in 2005 by Dr. Seshadri Ramkumar, manager of the Nonwoven and
Advanced Materials Laboratory at TIEHH, and a team of research scientists to meet the Department of
Defense’s need for a wipe that would absorb and neutralize gases and liquids that might be used in
chemical warfare. The process to make Fibertect has since received a U.S. patent and is now used by
the U.S. military to manufacture a low-cost decontamination wipe. Last year, the TIEHH team
re-engineered the wipe — which is made from raw cotton and carbon — to soak up oil in the Gulf of
Mexico following the explosion and sinking of BP’s Deepwater Horizon oil rig off the coast of
Louisiana in April 2010.

The continued support will help researchers develop more applications for Fibertect. “One of
the objectives that the Army’s Research, Development and Engineering Command encourages is for us
to take these technologies we develop for military applications and make them commercially viable
where they can transfer to the civilian population for responders on the domestic side,” said Steve
Presley, research coordinator for the Zumwalt program. “The post-9/11 world has kind of matured,
and there are always newer threats. It’s always evolving. One role that the Zumwalt program plays
is to help the military adapt to the changing threat landscape.”

July 19, 2011

Researchers at Raleigh, N.C.-based North Carolina State University’s (NCSU’s) Textile Protection
and Comfort Center (T-PACC) have received a $1 million, two-year grant from the Assistance to
Firefighters Grants (AFG) Program to develop new testing technologies for evaluating the thermal
protective performance and comfort of materials used in wildland firefighter gear. AFG — a program
administered by the U.S. Department of Homeland Security’s Federal Emergency Management Agency —
provides funding for firefighter safety research and development.

According to Dr. Roger Barker, T-PACC director and lead researcher on the project, new
flame-resistant fibers and fabrics are providing more thermal protection in firefighting gear than
older materials, but also sometimes have made clothing more uncomfortable, especially if added
fabric layers make the suit thicker and less breathable. One concern is that wildland firefighters
experience heat stress from wearing suits that trap body heat possibly for extended periods of time
and under extreme weather conditions.

“With wildfires, we’re not just talking about direct exposure to the flame, but also the
radiant heat coming off flames,” Barker said. “It’s a different kind of exposure — we’re exchanging
less heat intensity for longer periods of exposure — so using PyroMan™ wouldn’t help us in
addressing the particular problems wildland firefighters face,” he added, referring to the
state-of-the-art mannequin T-PACC currently uses to study garment and body reaction to intense heat
and flames.

As part of their R&D effort, NCSU researchers are working to develop RadMan™, an
instrumented mannequin specifically designed to evaluate radiant heat exposure. The mannequin will
be exposed to indirect radiant heat for up to several minutes, whereas PyroMan is only exposed to
direct flames for three to 10 seconds.

The NCSU team also will utilize T-PACC’s comfort research capabilities, including an advanced
sweating mannequin that measures the heat stress potential of wildland firefighter protective
clothing. In addition, wildland firefighters will participate in wear trials of gear in T-PACC’s
climate-controlled chamber to measure the comfort level of various outfits. The new testing methods
and knowledge will then be used to help the National Fire Protection Association revise its
standards for wildland firefighter ensembles.

July 19, 2011

ANKARA, Turkey — July 15, 2011 — This week, Assistant United States Trade Representative for Europe
and the Middle East L. Daniel Mullaney and Turkish Deputy Undersecretary of the Ministry of Economy
Cemalettin Damlaci co-chaired the eighth annual meeting of the U.S.-Turkey Trade and Investment
Council.  The Council meets under the auspices of the 1999 bilateral Trade and Investment
Framework Agreement (TIFA). 

“The United States greatly values its economic relationship with Turkey, which is a key
strategic partner in this region of the world,” said Mullaney. “These annual meetings allow us to
work together to overcome obstacles to increased trade and investment and to pursue actions to
improve economic integration. We are working hard to fulfill President Obama’s commitment to
enhance our bilateral trade and investment ties and to seek out new ways to pursue with Turkey our
mutual goals in the Middle East and North Africa.”

During the Council meeting, held on July 13 in Ankara, Turkey, the United States and Turkey
pursued various mechanisms for expanding their growing trade and investment relationship, including
joint support for small and medium sized exporters, regulatory and intellectual property support
for innovative industries, shared priorities in third countries, and deepened ties between the U.S.
and Turkish private sectors.  They also agreed to a fall inaugural meeting of the U.S.-Turkey
Business Council, an important mechanism for ensuring private sector input into increasing trade
and investment. 

The TIFA Council is also a key step in preparations for the second formal meeting, envisioned
for later this year, of the U.S.-Turkey Strategic Economic and Commercial Cooperation (FSECC)
dialogue.  The FSECC was inaugurated in December 2009 by U.S. Trade Representative Ron Kirk
and Secretary of Commerce Gary Locke with their Turkish co-chairs, Deputy Prime Minister Ali
Babacan and Minister for Economy Zafer Caglayan.

Mullaney was accompanied by Deputy Assistant Secretary of Commerce for Europe and Eurasia
Juan Verde and other officials from the Office of the United States Trade Representative (USTR) and
the Departments of Commerce, Agriculture and State.  At the meeting, senior government
officials discussed a full range of trade-related issues, including intellectual property rights,
steps to enhance the investment climate, biotechnology, pharmaceuticals, and government
procurement.

BACKGROUND

Two-way trade (exports plus imports) between the United States and Turkey was valued at
$14.8  billion during 2010, representing the U.S.’s 35th largest goods trading relationship.
While U.S.-Turkish trade was sharply impacted by the economic downturn in 2009, U.S. exports to
Turkey increased by 51.5% to $4 billion in 2010.  U.S. imports from Turkey in 2010 were $4.2
billion, up 14.8%. Leading U.S. exports to Turkey include aircraft, iron, steel, machinery and
fabric, in addition to a wide range of agricultural products. Turkey predominantly exports
vehicles, machinery, cement, and tobacco to the United States.

U.S. foreign direct investment (FDI) in Turkey amounted to $6.3 billion in 2009, mostly
concentrated in the wholesale trade and manufacturing sectors, while Turkish FDI in the United
States was $218 million in 2007 (latest figures available).

Posted on July 19, 2011

Source: USTR