May/June 2011

TÜV Rheinland Group‘s consumer products testing laboratory in Bentonville, Ark.,
has been accredited to ISO/IEC 17025:2005 by the American Association for Laboratory Accreditation,
and approved by the Consumer Products Safety Commission as a third-party testing laboratory to
provide certain chemical and mechanical testing on consumer products such as textiles and
children’s toys.

Hohenstein Institute America Inc. has relocated to 1688 Westbrook Ave.,
Burlington, N.C., 27215. Phone and fax numbers remain the same.

Albany, N.Y.-based
Albany International Corp.‘s PrimaLoft® ONE, SPORT and ECO insulation products
have received bluesign® certification.

EzTextiles LLC, New York City, has added a library of more than 325,000
royalty-free vintage print images to its online digital textile design resource center. The company
also has launched a blog at
www.eztextiles.com/blog.

The
Industrial Fabrics Association International (IFAI), Roseville, Minn., has
released the 2011 edition of “Market Watch: Geosynthetics Market Snapshot,” which may be purchased
at www.ifai.com/store. IFAI’s Marine Fabricators Association (MFA) has launched a new website,
located at
www.marinecanvas.com.



Online Textile Dictionary Inc., Hollywood, Fla., offers versions 2.5 and 3.5 of
Abraham’s Interactive Textile Dictionary, its multilingual online textile dictionary, together on
an 8-gigabyte USB flash drive key.



Kraton Performance Polymers Inc., Houston, has enhanced its website, www.kraton.com,
to showcase the key performance attributes and the latest technological advancements in NEXAR™
polymers sulfonated polymer membrane technology.

Switzerland-based
Santex AG has launched a new homepage, featuring its Cavitec, Santex,
SperottoRimar and Santex Nonwoven brands, located at
http://santex-group.com.

The
Association of the Nonwoven Fabrics Industry (INDA), Cary, N.C., has released The
North America Nonwovens Industry Outlook 2010-2015.

May/June 2011

The
U.S. Association of Importers of Textiles and Apparel, Washington, has elected
Maureen Gray, Polo Ralph Lauren, chairman;
John Clark, Michar LLC, vice-chairman;
Steve Odom, Eddie Bauer, secretary; and
Michael Singer, Macy’s Merchandising Group, treasurer.

FilSpec Inc., Quebec, has named
Peter J. Hegarty vice president, global business development, FilSpec and Richmond
Specialty Yarns.

F. Schumacher & Co., New York City, has named
Gerald W. Puschel chairman of the Board.

Levi Strauss & Co., San Francisco, has named
Laurie Etheridge senior vice president, women’s merchandising & design; and
Rebecca Van Dyck global chief marketing officer; Levi’s® brand.

Spindelfabrik Suessen GmbH, Germany, has appointed
Harald Szczepanek joint managing director.



Concept III Textiles International, Red Bank, N.J., has named
Mark Sardella eastern sales director.

The
American Apparel and Footwear Association (AAFA), Arlington, Va., has named
Rick Darling, LF USA, chairman of the Board of Directors;
Philip Williamson, Williamson-Dickie Manufacturing, vice chairman;
Joseph Gromek, Warnaco Inc., treasurer; and
Rick Helfenbein, TellaS Ltd. and Luen Thai USA, secretary.

The
National Retail Federation, Washington, has named
Beth Provenzano senior director, federal government relations.

Crypton Inc., West Bloomfield, Mich., has named
Alan A. Barr CFO and COO.

Starlinger & Co. GmbH, Austria, has named
Anton Huber managing director.

The
Industrial Fabrics Association International’s (IFAI’s) Tent Rental Division,
Roseville, Minn., has presented the Bruce W. Wodetzki Award to
Todd Dalland, president and cofounder of Future Tents Ltd. (FTL) Design
Engineering Studio and FTL Solar, New York City.

Royal Ten Cate, the Netherlands, has named
Guido Vliegen global group director, TenCate Grass; and
Mark Edwards president, North American operations, TenCate Advanced Armor.

Demand Dips Slightly


U
 ncertainty over prices and inventory control have combined to slow orders for many
spinners over the past month.

“We’re still very busy,” said one spinner, “but we have a little slack here and there for
the first time in a long time. It’s just been in the past several weeks that we’ve noticed a slight
fall-off in orders.”

Said one yarn broker who buys and sells both domestic and imported yarns: “Business is
continuing at a pretty frantic pace, but I believe most people would tell you they are seeing it
ease up a little bit. In the past four weeks, we noticed a drop in business activity in Asia. A
week or so later, we noticed a drop in business on the West Coast, in Los Angeles. Two weeks ago —
the week of April 11 — we started seeing the same thing in Central America. Right now, we’re seeing
a drop everywhere in our order inquiries, although our shipments — which, of course, are from
orders already booked — are very stable.”

He continued: “The question becomes, are people adjusting inventories, which is what we
suspect, or is there actually a significant drop in business demand? We don’t believe this is the
case, but we don’t know for sure at this point.”

Said another spinner: “We’ve seen a bit of drop in order inquiries. I think you can
attribute a lot of this to the fact that people feel a little more secure about product
availability in the last half of the year. Earlier this year, capacity — especially for ring-spun
yarns — was so tight that customers were overbuying to protect themselves. Now, as they feel a
little bit more comfortable that product will be available when they need it, they are slowing
orders to adjust inventories.”


Escalating Pricing Pressures 


Over the past few weeks, cotton prices have dipped substantially for the first time in a
number of months. As of late April, the price of base quality of cotton in the seven designated
markets measured by the U.S. Department of Agriculture averaged $1.7516 per pound, compared with
$1.9511 just two weeks earlier.

“The fact that cotton has come down has suddenly put a lot of pressure on prices,” said one
Carolinas spinner. “This fits with the reduced business activity over the past few weeks, but, in
reality, it does not fit with the costs incurred by U.S. manufacturers. Our cost of manufacturing
is still very high, despite the recent drop in cotton prices. But our customers expect there to be
an immediate drop in our prices in correlation with cotton prices. And, of course, it just doesn’t
work that way. We anticipate pricing pressure to continue, at least until business activity
improves.”


At this point, few spinners expect slight decreases in demand to be long-term or to be the
forerunner of deeper cuts.

“We think that adjustments to inventory will continue through the balance of the second
quarter,” said one spinner. “Inventory is a bad word these days. If you get on the high side and
prices drop dramatically, you can certainly get into trouble.”


Shifting Ordering Recommendations


Earlier this year, when securing manufacturing capacity was a concern for many yarn buyers,
the prevailing wisdom was to book orders well in advance in order to protect against possible
shortfalls in product availability. For the last half of the year, that strategy is changing.

“Right now, I am telling my customers to buy only enough product to fill the orders they
already have,” said one buyer. “From a price standpoint, volatility is a concern for both mills and
customers. Customers do not want to put themselves in a position of having a lot of high-cost
product if prices drop. And mills do not want to be in a position of taking a big hit on margins,
having customers refuse orders or trying to force customers to take product they cannot sell at
prevailing prices.

“He said, “One thing is for certain. The last half of the year is shaping up to be very
interesting.”

May/June 2011

From The Editor: KORUS: Singing A Sad Song

By Jim Borneman, Editor In Chief

There are some interesting themes running through textile industry meetings this spring. There is a sense of opportunity, and a sense that demand for domestic textiles of many varieties may be on the rise. Higher costs and prices are generally understood — not appreciated, but accepted, given the high price of oil and cotton. Manufacturing in general is showing positive signs of increasingactivity.

On the apparel side, U.S. and Western Hemisphere supply chain members are being re-evaluated as a source of supply for U.S. brands and retailers. Rising prices and quality and delivery issues with Chinese imports could be changing importers’ minds. These problems increase risk — risk of stockouts while facing an already fickle consumer, which could reduce same-store sales.

On the other hand, some supply chain members can’t help but feel they have been abused — abused by the importers, abused by trade agreements, and abused by a government that feels no remorse in giving away their industry. And abandoned — left behind in favor of cheap imports, priced in a manipulated currency and subsidized by a government focused on neo-mercantilist policies that accumulate U.S. debt instead of gold as in days gone by.

Unfortunately, the abuse might not be over. Just when you thought it was safe to get back in the water, along comes a resurgence of KORUS — the Korea-United States Free Trade Agreement. Originally signed back in 2007, the agreement lay dormant for years, but it has been revived and, with a few non-textile concessions, it is on the agenda once again.

KORUS appears flawed for several reasons — see Bill Jasper’s Executive Forum in this issue. The concerns are many, but it boils down to complete lack of enforcability, fewer tools for enforcement and a tariff schedule that vanishes rather quickly.

In the past, a country that has a high probability of becoming a place for transshipping goods — for example, passing goods off to the United States as “Made in South Korea”  that really are made someplace else but can benefit illegally from Korea’s agreement — have faced stiffer enforcement policies often referred to as Singapore-style rules. That is not the case with
KORUS, and Korea might just become a transshipping mecca — the Khyber Pass for goods made in North Korea and elsewhere.

There are some fairly high tariffs in place on imports from Korea. Historically, even in hurtful agreements, tariff phaseouts have been done over fairly long periods of time to give domestic suppliers a chance to modify their businesses. This is not the case with KORUS, and some may be hurt quickly and deeply.

Will the government stick it to the textile industry again? And after KORUS, will it pursue the Trans-Pacific Partnership (TPP) with eight countries — including Vietnam, with its government-owned textile powerhouse? It just gets more and more ominous.

This is a bright moment in the industry. Opportunity is in the air, with many sectors improving. Companies are expanding and investing. And there seem to be fewer plant closures. This is not the time for a trade agreement kick in the teeth.

May/June 2011

Alpaca United Formed To Promote Alpaca Fiber

Old Lyme, Conn.-based Alpaca United L3C, formed by a group of North American alpaca farmers and
processors, is gearing up to promote alpaca fiber as a luxury fiber on a par with cashmere, mohair
and vicuña. According to CEO Nicholas Hahn — who served as CEO and president of Cotton Incorporated
in the 1980s and ’90s and oversaw much of its branding and marketing activity leading up to and
during that period — Alpaca United is in the process of designing a logo with a tagline, building a
website and developing a social media strategy to help bring the fiber into the mainstream of the
luxury fiber market.

Some 9,000 to 10,000 farmers across the United States are raising a total of some 210,000
alpacas, Hahn said. “These farmers were behind the initiative in a way very similar to the way
Cotton Incorporated got started in the 1970s, and the industry is anxious to start a brand
identification program to add value to the fiber.

“Most alpaca fiber produced in the United States is processed domestically at what Hahn
described as “mini-mills” that spin hand-knitting yarn. “It’s primarily a cottage industry,” he
said. “A lot of farmers raise the animals, shear them and send the fiber to mills for processing;
and hire knitters to make products to sell out of retail stores on the farm and through websites.”

Alpaca is already used by some commercial manufacturers, including companies such as Gap Inc.
Alpaca United hopes to increase the fiber’s commercial exposure in apparel and home textiles such
as blankets and throws. “There’s not a lot of commercial-level processing going on,” Hahn said.

“Alpaca blends well with wool, cotton, silk and cashmere,” he added. “This side of the
business is very much of interest to us, so we can make über-luxury blends, such as alpaca/Supima®
or alpaca/silk. It also dyes very well, and is flame-resistant and hypoallergenic.”

May/June 2011

Rieter Splits Textile Automotive Divisions

Shareholders of Rieter Holding AG, Switzerland, have approved a proposal to split the company and
establish separate independent listed companies for its Textile Systems and Automotive Systems
divisions. Rieter’s Board of Directors announced the proposed split in March, subject to
shareholder approval at Rieter’s annual meeting on April 13
(See ”
The
Rupp Report: Rieter Is Going Strictly Textile,” www.
TextileWorld.com, March 22, 2011).

Rieter Automotive Systems has been renamed Autoneum Holding Ltd. Rieter shareholders received
a special dividend comprising registered shares in Autoneum, which is expected to be listed on the
SIX Swiss Exchange in May 2011.

Rieter Textile Systems continues to operate within Rieter Holding, which has narrowed its
focus onto its traditional spinning machinery and technology components business.

“You have just set one of the most important milestones in Rieter’s history,” said Rieter
Board Chairman Erwin Stoller to the company shareholders following their approval of the split. “I
am convinced that both our automotive supply and textile machinery businesses are well positioned
for a successful independent future.”

May/June 2011

Gildan To Acquire GoldToeMoretz

Montreal-based Gildan Activewear Inc. has agreed to acquire 100 percent of the common shares of
Gold Toe Moretz Holdings Corp. (GoldToeMoretz), Newton, N.C., for $350 million. The acquisition
includes intangible assets associated with GoldToeMoretz’s Gold Toe®, Silver Toe®, GoldToeGear®,
Auro®, PowerSox® and All Pro® sock brands; and its exclusive U.S. licenses to use the Under Armour®
and New Balance® brands; among other assets.

GoldToeMoretz Chairman and Chief Innovation Officer John Moretz and President and CEO Steve
Lineberger will stay on at Gildan, which plans to further develop GoldToeMoretz’s brands.

“In addition to the introduction of leading consumer brands, the acquisition provides Gildan
with enhanced brand management experience and expertise, best-in-class merchandising and strong
technical innovation and design capabilities to complement Gildan’s existing competitive strengths
for retail,” said Glenn J. Chamandy, president and CEO, Gildan Activewear.

May/June 2011

Sciessent Acquires Agion Technologies

Agion Technologies Inc., Wakefield, Mass. — a provider of antimicrobial and odor-control
technologies for textile, medical and industrial markets — has been acquired by Sciessent LLC,
established and headed by Agion’s senior management team. The acquisition includes Agion’s
intellectual property assets, including its national and international patents and patent-pending
applications, as well as its proprietary expertise pertaining to anti-odor agents including Agion®
silver-based antimicrobial technology and Agion Active™ dual-action anti-odor technology.

“With this acquisition, Sciessent assumes Agion Technologies’ role as a global leader in
providing sustainable technologies that benefit and enhance people’s lives through medical devices,
potable water and textile applications,” said Paul Ford, CEO, Sciessent. “We are committed to
innovation and expanded application of existing solutions and integration of other complementary
technologies. … We are also committed to the discovery, development and implementation of next
generation environmentally responsible technologies.”

May/June 2011

Solvay Submits Bid To Acquire Rhodia

Brussels-based plastics and chemicals conglomerate Solvay S.A. and Paris-based Rhodia — a chemical
conglomerate comprising 11 business units including Polyamide & Intermediates, Fibras, and
Engineering Plastics based on polyamide 6,6, among other businesses — have signed an agreement for
Solvay to acquire 100 percent of Rhodia at 31.60 euros per share ex-dividend of 0.5 euros, a cash
offer valuing Rhodia’s equity at 3.4 billion euros and the enterprise at 6.6 billion euros. The
transaction, which is subject to regulatory approvals in the European Union and in the United
States, is expected to create a new group with complementary businesses and synergies, and with
annual sales of 12 billion euros, and earnings before interest, taxes, depreciation and
amortization minus non-recurring elements totaling 1.9 billion euros.

According to the joint announcement made by the two companies, “the creation of a new group
will accelerate the shared ambition to create a large global chemical company committed to
sustainable development. The new group will capitalize on its large geographic footprint, the
quality and balance of its portfolio, its industrial excellence and the solidity of its financial
base to fully capture new growth opportunities, especially in high-growth markets.”

May/June 2011

Shaw Plant Named 2010 Facility Of The Year By CWEA

The California Water Environment Association (CWEA) has named Dalton, Ga.-based Shaw Industries
Group Inc.’s Tuftex carpet manufacturing plant in Santa Fe Springs, Calif., the 2010 Facility of
the Year. The award recognizes the plant’s innovative wastewater, stormwater and air quality
conservation efforts and waste management practices.

Sustainability initiatives at the plant include diverting residual waste from landfills to a
waste-to-energy plant in Commerce, Calif.; recycling its entire carpet production waste into
pre-consumer recycled content; and using low mono-nitrogen oxide burners on two ship-scale boilers
to reduce nitrogen oxide emissions. The facility previously has received CalRecycle’s Waste
Reduction Awards Program award for six years running, as well as the Central Basin Municipal Water
District’s Visionary Stewardship Award.

“As a local manufacturer, it was important to Shaw to implement environmentally responsible
practices, especially those that drastically conserve water at the facility, being that the
Colorado River – which provides water for our county – has remained in a drought for the past 11
years,” said Bill Woyshner, Shaw’s Tuftex Divisional Environmental/Safety Manager.

“Shaw’s Santa Fe Springs facility stands out in California for its commitment to
environmentally conscious practices across all aspects of its operations,” said Paul D.
Schmidtbauer, CWEA P3S Awards Committee Chair — South. “From recycling and saving millions of
gallons of water to its ‘Zero Waste to Landfill’ status, the facility is a model of best
environmental practices for our state.”

May/June 2011

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