Mesdan Offers Three New Testers For Quality Control

Italy-based laboratory equipment and splicer manufacturer Mesdan S.p.A.’s Mesdan-Lab division
introduced several new products at the recent ITMA Asia + CITME 2010.

The Elmatic Automatic Digital Elmendorf Tearing tester for both fine and heavy-duty textiles
and other materials features a measuring range from 200 centiNewtons (cN) to 30,000 cN; automated
test execution including specimen cut, pendulum release, specimen tear, tear force measurement,
pendulum stop and pendulum reposition in the starting position; total safety cover with safety lock
during testing; large liquid crystal display, personal computer (PC) and printer connection;
ability to post results in newtons, kilograms and pounds; Elmatic software for data storage, and
graphic and statistical report of results; high acuracy and repeatability; conformance with
international testing standards; and high productivity.

The MT-5 Evenness tester analyzes periodic mass variations produced during sliver, roving and
yarn manufacturing. The tester utilizes state-of-the-art capacitive sensors to measure evenness,
flaws and yarn count. Features include a measuring range between 80 grams per meter of sliver to Nm
250 yarns; an MT-5 software system that evaluates mass variations, provides spectrogram and
statistical data, and gives coefficient of variation and other percentages; an imperfection
indicator; a measuring device for  thin and thick places and neps in spun yarns; SPC
spectrograph; 306-nanometer maximum wavelength; and PC including monitor and printer.

The company also offers a modular nine-station model of the Martindale Abrasion and Pilling
tester for woven, knitted and nonwoven fabrics as well as leather and other materials. Its modular
design allows it to be equipped with four positions and upgraded to include six, eight or nine
positions. Mesdan reports the tester is very quiet and vibration-free and offers a very precise
Lissajous figure. It conforms to a number of international abrasion and pilling testing standards
and has been approved by United Kingdom-based Marks & Spencer for six of its test methods.
Features include touch screen keyboard, independent digital counting of each testing head, easy
access to tested specimens, key and safety device to stop operation in case of emergency, and
numerous other features.

July 27, 2010

Buckman Introduces VOC-Free Flamebloc® GS Fire Retardants

Memphis, Tenn.-based Buckman Laboratories International Inc., a specialty chemical company, reports
it has developed a line of green fire retardant (FR) products that contain no volatile organic
compounds (VOCs). The complete Flamebloc® GS (Green Series) line comprises 13 substrate-specific
chemistries compatible with a variety of materials from paper and wood to plastics and
fabric. 

The line is based on a water-based polymeric amino-polyphosphate chemistry that provides char
forming protection against flame and heat and is manufactured by Houston-based Flame Seal Products
Inc. According to Buckman, the GS products are made using generally-recognized-as-safe (GRAS) raw
materials and do not need halogen to activate their FR capabilities, making them more
environmentally friendly than traditional FR products.

“The market has been looking for a green FR chemistry, and we are pleased to provide the
solution,” said Jim Hachtmann, business manager for Coatings & Plastics, Buckman. “We are
excited about the current and future possibilities of this chemistry and look forward to working
with Flame Seal on the next generation products.”

Products will be available through both Buckman’s and Flame Seal’s sales networks, and a
Solutions Team comprised of associates from both companies will work with customers to provide the
code assistance, testing, support and project management skills.

July 27, 2010

EDANA, CNITA, ANFA Support IFAI Expo Asia 2011

The Industrial Fabrics Association International (IFAI), Roseville, Minn., has announced that three
nonwovens groups — Brussels-based EDANA, the International Association Serving the Nonwovens and
Related Industries, the Beijing-based China Nonwovens and Industrial Textiles Association (CNITA),
and the Japan-based Asia Nonwovens Fabrics Association (ANFA) — will support IFAI Expo Asia 2011,
to be held March 22-25, 2011, at the Marina Bay Sands Resort and Conference Centre in Singapore.

The inaugural event designed to serve the Asia Pacific region is expected to attract more
than 100 international and regional exhibitors and approximately 2,000 trade visitors from Asia,
the Pacific and the United States. IFAI reports 29 major corporations have committed to exhibiting
and 21 regional organizations are teaming with the organization to promote the technical textiles
trade show.

“While current trade shows in India and China focus primarily on the disposable nonwoven
industry, IFAI Expo Asia 2011 is the first major event in the region that specifically targets as
visitors the end-product fabricators who use all types of durable materials — woven, nonwoven,
knit and composite textiles,” said Stephen Warner, president and CEO, IFAI.

IFAI’s recently published 2010 State of the Industry Report states the United States
continues to be the largest user market for technical textiles, consuming 23 percent of global
production, followed by Europe, which consumes 22 percent. “There is a tremendous opportunity for
export business in the technical textiles market,” Warner said. “Globally, ours is one of the
fastest growing sectors in the technical textiles industry.”

The four-day event will feature the trade exposition and educational symposiums for nine
technical textile niche end-markets. Dr. Behnam Pourdeyhimi will be the opening speaker for the
Technical Nonwoven Applications session. Pourdeyhimi is the William A. Klopman Distinguished
Chaired Professor of Materials in the College of Textiles at North Carolina State University;
associate dean for Industry Research and Extension; and executive director of the Nonwovens
Institute and the Nonwovens Cooperative Research Center.

July 27, 2010

Huntsman Introduces Novasol® Vat Dyes

Singapore-based Huntsman Textile Effects — a manufacturer of chemicals and dyes for finished
textiles and materials, and a division of Huntsman Corp. — has redesigned its Novasol® vat dyes
for dyeing and printing cellulosic fibers to improve their durability in harsh conditions. The dyes
are compatible with a variety of finishes including protective finishes, retardants and repellents,
and are suitable for a range of end-uses including military, protectivewear, career apparel,
business shirts and toweling.

According to Huntsman, Novasol vat dyes are produced using a modern standardization unit with
high-performing wet mills that are controlled by state-of-the-art particle size measurement
equipment. Upstream raw materials are tested, and finished goods are certified to comply with the
company’s strict product specifications for applying Novasol vat dyes.

July 27, 2010

P2i Acquires Surface Innovations

Abingdon, United Kingdom — July 13, 2010 — P2i Limited, the world leader in liquid repellent
nano-coating technology, has acquired 100 per cent of the share capital of Surface Innovations Ltd,
a UK-based technology company with a wide range of functional nano-coating patents. The terms of
the deal were not disclosed.

The acquisition expands P2i’s product portfolio beyond its market-leading technologies for
liquid repellency, adding “functional” coating technologies with applications including
anti-bacterial resistance, liquid attracting (super wettable), and many others.

Surface Innovations is a research and development company with 17 patent families that focus
on functional nano-coatings obtained using plasma enhanced chemical vapor deposition. It was
founded in 2001 by Professor Jas Pal Badyal as a spin-out of Durham University. Professor Badyal
will sit on a new Technical Advisory Panel to provide ongoing scientific advice to P2i, as well as
developing new patents and applications for the company.

The acquisition of Surface Innovations comes as P2i gains commercial traction in all five of
its core markets: Electronics, Lifestyle, Energy and Filtration, Life Sciences and
Military/Institutional. In the past year, P2i has tripled its employees to 75 and scaled up its
operations, which are now located across Europe, North America and Asia (China, Singapore, Thailand
and Indonesia).

Carl Francis, Chief Executive of P2i, said: “P2i has excelled in commercializing its liquid
repellent nano-coating technology, proving beyond doubt that plasma processing is a viable, cost
effective industrial process. As our customer base expands and their requirements broaden, the
technology we have acquired will enable us to commercialize new functional coatings that further
enhance the performance of products ranging from consumer electronics to military clothing.

Dr Stephen Coulson, P2i’s Chief Technical Officer, said: “Bringing Surface Innovations into
P2i accelerates our expansion into functional nano-coatings beyond liquid repellency. Its clear
lead in areas such as anti-microbial, super wettable fabrics and protein resistance gives us a
great springboard into the world of functional nano-coatings and allows us to respond timely to
numerous customer requirements.

Prof Jas Pal Badyal, previously majority shareholder of Surface Innovations, commented: “I’m
delighted that my research and patents are now with P2i, which has a proven capability in
commercializing plasma technology. It is the perfect vehicle to deploy these various technologies
into global markets. We have highly complementary skills sets and this acquisition will see many
exciting new inventions launched into P2i’s primary markets.”

Posted on July 27, 2010

Press Release Courtesy of P2i Ltd.

Ahlers And Assyst Close Out Innovation Partnership Deal

MUNICH, Germany — July, 20, 2010 — Effective immediately, assyst and Ahlers AG, one of Europe’s
leading men’s fashion manufacturers are to cooperate closely with one another in the development of
technological innovations. The companies’ focus will be on process and product development in the
apparel industry.

“In order to achieve our strategic, vertically-oriented objectives – and these include short
time-to-market, high quality-to-market and costs savings – we intend to expand and further optimize
our use of technology. In this respect, assyst gives us a real edge on the market and customized
solutions”, says Uwe Dubbert, Managing Director of the Ahlers Zentralverwaltung GmbH (Central
Administration). “This innovation partnership means a high level of commitment for us. We laid the
groundwork for our agreement during intensive discussions – and now we’re looking forward to a
mutually trusting and rewarding business relationship.”

One of Ahler’s partnership aims is the seamless continuity of processes, from development
right up to production – and to achieve this, the company is equipping all its CAD workplaces with
cad.assyst 2010, the new release. Ahlers is also testing the automarker.com platform for structured
laying and order optimization.

Another cornerstone of this cooperation agreement is the development of an expanded, vertical
framework collection planning program, including complete integration with the Ahlers area
management and ERP software systems.

The collection development will be harmonized throughout the entire range of Ahler’s brands.
The next few months will also see the company’s various PDM systems standardized, based on
plm.assyst. Here particular attention will be paid to the functional system expansion of the PLM
system, which will be optimally supported by the verticalization of the Ahlers Group.

The software company and the apparel manufacturer intend to use these products to realize a
seamless process. To help achieve this objective, Ahlers will participate in the further
development of the software. In return, Ahlers will receive new functions some time before they are
introduced to the market.

In the workwear sector, Ahlers will also test the use of Human Solutions products for the
Pionier Workwear brand name. The use of 3D body scanners and XFit, the mass customization software
will increase the future efficiency of employee measurement in corporate fashion customer projects.

This close cooperation with Ahlers means a huge market advantage for assyst and Human
Solutions as far as knowledge is concerned. “Close cooperation with our customers in the form of
innovation partnerships enables us to accurately gauge the requirements of the market”, explained
Dr. Andreas Seidl, Managing Director of assyst and Human Solutions. “This means we can develop the
right technologies to enable our customers to surmount the challenges in their own markets.
Innovation partnerships are therefore an important integral part of our ‘Your business first’
strategy.”

Ahlers AG

Ahlers AG dates back to the year 1919, when Adolf Ahlers established a cloth wholesaling
business in Jever, Friesland. Today Ahlers is one of the leading manufacturers of menswear in
Europe. An innovative, financially strong company, Ahlers has continually proven during its
90-years in business that it can react flexibly and fast to current market requirements. The
company has been listed on the stock exchange since 1987.

Ahlers has a multitude of brands, covering the requirements of the men’s fashion and apparel
markets. The company’s core competence is the manufacture and sale of contemporary collections,
made-to-measure for strictly-defined target groups. For decades now, Ahlers has been a reliable
partner for medium-sized, trade retailers and is one of the large European players in its sales
channels as well as in its brands and products, which fulfill the highest standards of quality.

assyst GmbH

assyst develops integrated CAD and PLM solutions for the Fashion and Interiors industries. As
the German market leader, assyst offers first-class products. The company operates on a worldwide
basis with other leading companies. The approach to success is: “Your business first”. For assyst,
the customer’s business takes top priority. This is why assyst software targets specific processes,
creating verifiable value added in product development.

The flagship products of this prestigious technology company include:
cad-assyst/smart.pattern; 3D visualization with real body dimensions; PLM for product data and
collaboration management, as well as OnDemand and local solutions for contract optimization and
laying. The assyst GmbH is now a subsidiary of the Human Solutions GmbH. The company’s registered
offices are in Dornach near Munich.

HUMAN SOLUTIONS GmbH

Human Solutions GmbH is a global software and system house with around 70 employees in
Kaiserslautern, Germany and Detroit, USA. The company develops and sells hardware and software
solutions for body scanning, ergonomics and simulation applications. Human Solution’s current
customer list contains more than 300 names, including well-known companies like Daimler, BMW,
Volkswagen, Airbus Industries and the US and Swiss Armies, plus retailers like the chain stores
Karstadt and Kaufhof, fashion houses like Hirmer und Engelhorn, apparel manufacturers such as
Odermark, Scabal, van Laack and many, many more.

Posted on July 27, 2010

Press Release Courtesy of HUMAN SOLUTIONS GmbH

In Memoriam: Roger Gant Jr.

GLEN RAVEN, N.C. — July 27, 2010 — Roger Gant, Jr., who served as President of Glen Raven, Inc.
from 1972 to 1989, has died at the age of 86. Mr. Gant served the company in a variety of
management positions and as President and Board Member for 55 years. He also led the Glen Raven
team that created Glen Raven’s Sunbrella® brand of performance fabrics in the early 1960s.

“It was my good fortune to have Roger as a wise and patient mentor,” said Glen Raven
President and CEO Allen E. Gant, Jr. “As is true for many Glen Raven associates, Roger not only
taught me the principles of good business, but also the value of family, community and people. He
was a good and faithful steward of our company and set us on a solid course that is sustaining even
today.

“Our family and all Glen Raven associates are greatly saddened by Roger’s death. He was an
inspiring leader, a dedicated husband and father and one of the brightest and most compassionate
individuals you could ever care to meet. The world is a better place because Roger was here, and we
will miss him greatly.”

Roger Gant, Jr. was born on May 9, 1924 in Alamance County, a second generation descendent of
John Q. Gant, the founder of Glen Raven, Inc., where Mr. Gant devoted his professional career.

Mr. Gant attended public schools in Alamance County and served with the U.S. Army during
World War II, receiving decorations for meritorious service. After the War, Mr. Gant returned to
North Carolina where he graduated from the University of North Carolina at Chapel Hill. He met his
wife, Rose Anne, while attending college and they returned to Alamance County where they raised
three children, Anne, Alice, and Roger III.

Following graduation from UNC, Mr. Gant joined Glen Raven on October 1, 1948 and held a
variety of positions culminating in president in 1972, a position he held until his retirement from
management in 1989. Mr. Gant also served as a Glen Raven director, beginning with his first
appointment on May 1, 1946. He continued to serve as a director for 55 years until his retirement
from the board on June 7, 2001 and became Director Emeritus.

Mr. Gant was an innovative leader during his many years of service as a manager and director
with Glen Raven. He fostered countless technical, financial and process improvements throughout the
company while also encouraging the professional development of Glen Raven associates through
continuing education.

Under Mr. Gant’s leadership, Glen Raven’s sales more than quintupled and sales per employee
more than doubled. One of Mr. Gant’s most important achievements for Glen Raven was the
introduction of synthetic awning fabrics and creation of the Sunbrella® brand beginning in 1961.
Sunbrella is today one of the world’s leading performance fabrics brands, recognized as the market
leader for awnings, boating and furniture.

Not only did Mr. Gant foster innovation within Glen Raven, he also championed progressive
thinking throughout the textile industry. Under his leadership, the company provided support for
educational programs at N.C. State University, University of North Carolina-Chapel Hill and
Institute of Textile Technology. In recognition of his support for the performance fabrics
industry, Mr. Gant received a lifetime achievement award from the Industrial Fabrics Association
International.

Mr. Gant was also a community leader, involved in numerous nonprofit organizations including
Boy Scouts, Alamance Arts Council, his church and diocese, YMCA, United Way and Salvation Army. He
also served as a trustee for Elon College, now Elon University and community advisor for Wachovia
Bank.

Posted on July 27, 2010

Press Release Courtesy of Glen Raven Inc.

Economical Rope Finishing


D
uring the last few years, Mageba Textilmaschinen GmbH & Co. KG — a Germany-based
manufacturer of dyeing, finishing and other machinery for processing narrow fabrics — has
developed innovative and easy-to-operate finishing ranges for the coating, finishing and stretching
of ropes, cords and tows. These ranges, with their state-of-the-art modular designs, meet the high
quality standards of the rope and cord industry.

The RopeCoater and RopeLiner rope finishing ranges, controlled by a programmable logic
controller, allow for the exact reproduction according to the parameters specified as well as
energy-efficient and smooth processing of high-modulus polyethylene (HMPE), polyester and polyamide
ropes.

A most efficient and smooth drying process for rope is achieved through the benefit of
microwave technology. Microwave drying combined with infrared and warm-air drying allows for
significant increases in production output, energy savings and advantages in process engineering,
resulting in high-quality standards.

Owing to fiber orientation or fiber stretching by means of a controlled stretching process
for ropes made of HMPE or polyester, the break load can be increased, thus leading to an optimum
usage of the raw material.

mageba
Mageba’s RopeLiner rope finishing range includes PLC control, a coating unit, microwave
dryer, infrared dryer, hold mangle, warm-air dryer and pull mangle.

Basically, Mageba distinguishes between two continous rope finishing processes:

  • impregnation/coating and drying/fixation, using the RopeCoater range; and
  • impregnation/coating, predrying, stretching and drying/fixation, using RopeLiner.


Impregnation/Coating


The impregnation process requires an optimal penetration of the chemicals — mostly
water-solubable polyurethane — into the rope core. During this process, the ropes are dipped into
a teflonized lowerable bath, subsequently run through a stripping unit and optionally through a
two-roller squeeze padder. The stripping unit is equipped with a pneumatically driven rope-forming
device, which can be adjusted according to the rope diameter, thus ensuring a controlled and even
pick-up of the chemicals.

ropecoater
The RopeCoater range comprises a coating unit, microwave dryer and warm-air dryer.


Drying/Fixation


During the drying process, it is most crucial not only to remove the water on the surface of
the rope, but also to remove it from the rope core. Moreover, the chemicals need a certain dwell
time to allow the fixation of the ropes and the reaction of the chemicals under a certain
temperature, determined according to the type and material of the rope that is under fixation.

There are three methods for the drying of ropes: microwave drying; infrared drying; and
warm-air drying.

For the predrying of ropes, microwave drying has proven the most efficient method as a
result of the microwaves penetrating immediately into the rope core, thus initiating the drying
process from the inside to the outside of the rope. Depending on the rope diameter and the type of
coating combined with a final drying process, the microwave predrying method allows for a 40- to
80-percent increase in production output.

Furthermore, microwave drying is considered an energy-efficient and smooth method because
the microwaves do not primarily heat the rope material, but do vaporize the moisture directly in
the rope. In contrast with other drying procedures, it enables effective drying at low
temperatures. This advantage allows for gentle drying even of sensitive material like HMPE and
prevents bubbling on the rope surface.

Microwave drying takes place from the middle of the rope to the outer side, and the unit is
positioned straight behind the stripping unit. Therefore, the chemicals picked up start drying
inside the rope, and owing to the rope feed tension, they escape to a smaller extent from the rope
core. This ensures smooth drying and results in an even penetration of the entire rope profile.

Combined with the microwave drying procedure, infrared drying also is an effective and
space-saving drying method, used in particular for predrying before the stretching process. The
infrared drying process provides the most efficient rope drying from the outside to the inside. The
combination of both methods — microwave and infrared drying — results in a high-performance
process. In order to provide a smooth infrared drying process, especially for ropes made of HMPE,
the infrared drying cabinet is equipped with three adjustable heating zones, and the infrared
radiators are installed in special positions — both ensuring optimal intervals between heating and
dwelling zones, thus guaranteeing even exposure to radiation.

Continous warm-air drying is considered a very smooth drying procedure and can be used for
predrying, final drying and thermofixation. The rope is run spirally through the drying cabinet. If
used for thick ropes, warm-air drying can be time-consuming because the inner humidity moves slowly
to the rope surface. Therefore, the drying cabinet allows for a large rope content. To shorten the
warm-air drying process during coating, microwave predrying is recommended. The temperature in the
warm-air drying cabinet is adjusted by means of a sensor in the cabinet or by measuring the rope
temperature at the exit of the cabinet, which allows a controlled and constant drying or fixation
process. During the warm-air drying process, temperatures up to 220°C can be reached. Always
committed to energy-saving operation methods, the air circulation dryer is equipped with valves to
control the ratio between recirculated air and fresh air supply.


Stretching Of Ropes


The thermal and mechanical orientation and stretching of the ropes is required for the
mechanical length orientation of the braids and for the orientation of the molecular structures at
the melting point of man-made materials like polyester and HMPE. Both processes have a significant
impact on the break load and elongation of the rope.

The stretching of the rope is done by means of hold and pull mangles with a set tensile
load. The drying cabinet or heating zone is positioned between the hold mangle and the pull mangle.
The rope stretches itself toward the melting point under a set temperature and tensile force.

During the stretching process, the tensile load required amounts to approximately 10 percent
of the break load. Depending on the material used and on the dwell time in the dryer, the
temperatures vary. They range from 130°C to 140°C for HMPE and from 190°C to 220 °C for polyester.
A cell load keeps the tensile load of the rope stable, setting either the tensile load value or the
percentage of the rope stretching.

For a 3-millimeter (mm)-diameter rope made of polyester, the break load can be increased by
around 40 percent by applying a tensile load of around 100 kilograms.

In order to avoid deformation of the rope during the stretching process, the hold and pull
mangle for rope diameters up to 60 mm is equipped with a two-groove-roller system. Alternatively,
the two-groove system can be designed according to the customer’s specifications.

Finishing ranges up to a rope diameter of 25 mm have overhung hold and pull mangles allowing
for easy exchange of the groove pulley if required according to the size of the rope diameter.


Machine Concept


The demand for ideal adjustment of the machine design to the rope diameter to be processed
requires the availability of two basic machine types:

  • for a rope diameter up to 25 mm: RopeCoater I and RopeLiner I with break load up to 3 metric
    tons; or
  • for a rope diameter up to 60 mm: RopeCoater II and RopeLiner II with break load up to 5 metric
    tons.

Optionally, the ranges are available for larger rope diameters and higher break loads.

Depending on the application and space, the stretching process can be done either with a
vertical or a horizontal warm-air dryer. The production speed in the infrared and warm-air dryer
depends on the rope content and is determined according to the production output required.

The computer control with modem for remote diagnostics ensures the recording of processing
data related to the product. For every type of rope, the complete processing data — such as
temperatures, speeds, tensile loads, pressures and other data — are saved and can be deposited,
thus allowing for precisely reproducible processes.

Editor’s Note: This article was provided to Textile World by Mageba Textilmaschinen GmbH &
Co. KG.

Universal Fibers® Celebrates Four Decades Of Progress

BRISTOLl, VA — July 13, 2010 — Universal Fibers, Inc. hosted more than 550 of their associates,
and their families at a special 40th anniversary event at the corporate headquarters in Bristol,
VA.  The celebration was split between two days, Thursday, July 8 and Saturday, July 10. 
Total attendance for the two days was more than a thousand people on the company’s grounds at the
Washington County Industrial Park.

Universal Fibers celebrates a long history of excellence since production began at the
company’s Bristol headquarters in 1970, known at the time as CAMAC. The name was changed to
Universal Fibers in 1999 and in the past decade the company has lived up to it’s name by opening
plants in both Thailand and China and being a world leader in the solution dyed fiber industry.

“I’m honored to have shared the last decade with Universal Fibers,” says Marc Ammen, CEO of
Universal Fibers, Inc. “I have learned that machines, although important, don’t make a company.
People make a company and make products. That’s why we are still in business and still growing, and
that’s what this celebration is about: our associates.”

Universal Fibers Associates and guests were treated to a cook out reception complete with ice
cream and snow cones for the kids. Family friendly activities included train-rides, inflatables and
games.  Family members were given a tour of the plant including the new Customer Care Center
showcase and lobby and received a commemorative 40th anniversary picture and gifts.

“We wanted this to be a memorable event for not only the associates, but their families,”
says Howard Bartholomay, Director of Human Resources at Universal. “With our recent expansion we
have more than 175 new associates hired in the past five months. All of our associates have done a
tremendous job meeting the demands of our customers and we want to show them we appreciate their
hard work”

Also at the event, long-time associates were honored with 10, 15, 20 and 25 years of service
awards.

About Universal: Universal Fibers® is headquartered in Bristol, Virginia, USA with
manufacturing operations in Thailand and China. Universal Fibers® a multi-platform producer of
solution-dyed synthetic yarns for the commercial, residential, transportation and textile market
and is ISO 14001 certified.  Universal Fibers is a pioneer in sustainable efforts in the fiber
industry and was the first in the industry to produce post-consumer Nylon 6,6 fiber For more
information, please call customer service at 800-457-4759 or visit our website at
www.universalfibers.net.

Posted on July 27, 2010

Press Release Courtesy of Universal Fibers Inc.

The Rupp Report: Marketing And R&D Vital For Survival

For some decades now, when problems occur or the turnover is dropping, most companies have been
following the same procedure: to reduce costs at any price. From the beginning of 2008 up to the
first quarter of 2010, global industry was suffering deeply for several reasons that everybody
knows today. And, of course, the textile and the textile machinery industry were heavily affected
as well.

Cost Reduction

Over the past 18 months, the Rupp Report has reported many times about the problems and
worries of the global textile machinery industry in particular. Obviously, almost all machinery
manufacturers acted the same way: reducing costs at any price. Just to name a few consequences,
this means fewer people employed, reduced production output and marketing budgets cut virtually to
zero. In many, sometimes discreet, discussions, R&D people have confirmed the fact that even
research and development has been cut down to marginal levels.

These words are hard to understand: In good times, it’s easy to sell, but in times of
trouble, efforts to survive should be increased, to work in a so-called “anti-cyclical” manner.
This word is probably the most hated by all CFOs in the world. Some companies have done their
homework. Here is the latest example of a company doing its homework: however, it’s from the
pharmaceutical industry.

R&D Pays Off

Switzerland-based Novartis International AG provides healthcare solutions. In 2009, net sales
from the group’s continuing operations totaled $44.3 billion, while approximately $7.5 billion were
invested in R&D activities throughout the group. Now, the group has delivered its
second-quarter results: double-digit growth with excellent contributions from all divisions. Net
sales were up 11 percent — or 12 percent in constant currencies (cc) — to $11.7 billion; and
first-half sales were up 18 percent — 15 percent in cc — to $23.8 billion. Operating income grew
by 25 percent — 24 percent in cc — to $3.0 billion; the core operating income was up 23 percent
— also 23 percent in cc — to $3.3 billion.

The figures in this report are not that important; what is important is the fact that
Novartis says the “strong performance was driven by continued portfolio rejuvenation and
innovation.” The company is convinced that its market success in the second quarter of 2010 is
based on three strategic priorities:

•    to extend its lead in innovation;

•    to accelerate growth across all divisions through tailored commercial
models that leverage the broad portfolio and expansion in emerging markets; and

•    to drive productivity to continue improving margins and reinvesting for
future growth.

Yes, Novartis is a very big company. However, it reports, consistent R&D investment,
differentiated new medicines and an industry-leading number of product approvals have driven
innovation at the company. Its development pipeline is impressive and very competitive; at the
moment, 136 new products are under development. One may say this is not the textile industry:
However, note that Novartis is investing 5.6 percent of net sales in R&D. New products are
vital for sustainable growth of every manufacturer.

Show Your Presence

Novartis reports that “at the core of this success is a sustained commitment to innovation,
which has resulted in breakthrough products across the portfolio. The ability to thrive in a
challenging environment is consistent with the goal of becoming the world’s most successful and
respected healthcare company.”

In November 2009, the Rupp Report reported on a press conference at Stäubli and, to some
extent, the strange reaction of the people prior to the event
(See ”
The
Rupp Report: Show Me Your Flag
,” November 24, 2009)
. The guess was that the company
probably wants to show that it is still around and does its homework: research and development
resulting in new or enhanced products for the industry — and, last, but not least, so it will be
ready when the upswing truly starts.

And, after the presentation, the guess changed into a confirmation: The management welcomed
all attendees and mentioned that they want to show the will and the ability of the company to carry
on work even in a difficult market environment.

Ready For The Future

The successful ITMA Asia CITME 2010 provided positive results of the companies that did their
homework at all levels of their organizations, but also in R&D and marketing. However, some
delivery problems are already occurring on the horizon, but that is another story.

In his comments on the results of the second quarter, Novartis CEO Joseph Jimenez said: “I am
pleased that Novartis once again delivered strong above-market, double-digit growth in the second
quarter of 2010. Our results were driven by our success in innovation across the portfolio, as
recently launched products comprised 21 percent of Group sales. We are making great progress on all
three strategic priorities of innovation, growth and productivity.”

Is there anything to add to this?

July 20, 2010

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