South Korea-based Hyosung Corp., manufacturer of creora® spandex, will invest more than $100
million to open a new plant in Brazil that will manufacture 10,000 metric tons of creora spandex
per year. The facility will be located in the Santa Catarina region and is expected to go online
next year.

“We are investing in Brazil because we recognize the growth potential of the South American
continent and in particular Brazil’s importance in the future of the global textile business,” said
Yun-Eun Whang, president of Hyosung’s Spandex Performance Unit. “This plant will better serve the
needs of regional customers for product innovation, reliable service and delivery.”

According to Whang, once production at the facility begins, Hyosung is expected to be the
largest spandex producer in South America. The company plans an additional future investment to
increase the facility’s production capacity to 20,000 metric tons.

March 30, 2010

Leigh Fibers Inc., a Wellford, S.C.-based supplier of reprocessed and raw fibers, plans to invest
$10.1 million to expand its manufacturing plant, with the expectation of adding 40 new employees to
its workforce over the next five years.

As part of the expansion, the company will invest in new equipment that will enable it to add
to its product line, which includes fibers made from reprocessed textile waste. Markets served
include automotive, construction, erosion control, home furnishings, nonwovens and traditional
textiles. Leigh Fibers operates globally, with import and export activities in 25 countries.

“We continue to see an increase in demand for our products and services, and this expansion
will help us better serve our customers as well as position us for future growth,” said Keith
Taylor, president, Leigh Fibers. “Our plans to invest in the Wellford facility will not only
promote job growth, but will also have a positive environmental impact on our county and state by
minimizing waste going to landfills. We believe these investments will foster an entrance into a
Green Economy less impacted by foreign imports and support the manufacturing base within the
state.”

March 30, 2010

Germany-based warp-knitting machinery manufacturer Karl Mayer Textilmaschinenfabrik GmbH now offers
its customers onsite training courses through its Karl Mayer Academy. The company says the onsite
courses reduce training costs and allows simultaneous training of entire teams of workers. The
first company to receive onsite training was Germany-based Spiga GmbH. The Woolwine, Va.-based
Woolwine division of Winston-Salem, N.C.-based apparel manufacturer Hanesbrands Inc., received the
first international onsite training.

March 30, 2010

Dallas, N.C.-based Gaston College has announced its East Campus and Textile Technology Center in
Belmont, N.C., will be renamed in honor of W. Duke Kimbrell in recognition of a multi-year,
multimillion-dollar unrestricted gift from the W. Duke Kimbrell Foundation to the Gaston College
Foundation Inc. While the exact amount will not be publicized, the commitment is one of the largest
the 46-year-old college has ever received. Kimbrell is chairman of Gastonia, N.C.-based sales yarn
spinner Parkdale Mills Inc., a longtime supporter of the college.

“We’ve supported Gaston College since its inception, and have sent many of our employees for
technical training there,” Kimbrell said. “The college is a wonderful resource for the community
and we are pleased to provide funds for college officials to use for the most pressing needs.”

According to the college, potential uses for the gift include technology infrastructure for
its Belmont as well as Dallas and Lincoln, N.C., campuses; new program start-up; books and
reference materials for the East Campus Library; and replacement of outdated equipment or purchase
of specialized equipment. The East Campus and Textile Technology Center carries out new and sample
product development, product testing, training and consulting for the textile industry.

“We are extremely grateful to Mr. Kimbrell and the board of the foundation for their
generosity and for their willingness to allow us to use the money where it’s needed most,” said Dr.
Patricia Skinner, president, Gaston College. “This gift will supplement our state and county
funding, enabling us to do such things as upgrade online learning systems, keep up with technology,
and have funds to research and begin new programs to meet the needs of the communities we serve.”

March 30, 2010

March 18, 2010 — BOENNIGHEIM (hm) — For the purpose of provided targeted support in the area of
quality assurance to textile and clothing manufacturers as well as buyers and trading companies in
the DR-CAFTA region with respect to the flow of goods into the US, the Hohenstein Institute opened
a new contact office in Santo Domingo (Dominican Republic) at the beginning of March.

Interested companies now have access to a broad range of independent quality assessments and
product certifications, ranging from reviews of statutory requirements to the evaluation of
different product properties such as fit, workmanship or wearing comfort, to the verification of
special functions such as the anti-microbial effect of textiles.  Furthermore, in its role as
the official representative of the International Oeko-Tex® Association, the new Hohenstein contact
office will also be looking after textile harmful substance testing as per the Oeko-Tex® Standard
100.

Oeko-Tex® certifications play a particularly important role in the export of children’s
products to the US, since each Oeko-Tex® certificate confirms that the tested article complies with
the applicable CPSIA legislation with regard to lead.

For additional inquiries regarding Oeko-Tex® Standard 100 and other services offered by the
Hohenstein Institute, please contact the following:

Hohenstein Institute Dominican Republic

Calle Central #3, Torre Laurel II., Apt 9B

Bella Vista

Santo Domingo

REPUBLICA DOMINICANA 

Tel: +1 809-2427595

Fax: +1 809-5087832

Mobile:  +1 809-2845555

e-mail:
dom.rep@hohenstein.org 

Posted on March 30, 2010

Press Release Courtesy of the Hohenstein Institute

As the New Year began, a few markets started to show some signs of recovery after the disastrous
period of 2008 and 2009. After Asia, and particularly China and India, another part of the world
presented some market improvement — Latin America, and especially Brazil, while other South
American markets, such as Argentina, are still struggling with the situation.

Huge Domestic Market

Yet, in some South American countries, local factors have had the same or a larger impact
than has the global financial crisis. One big advantage for Brazil is its enormous domestic market,
when compared to countries like Argentina or Colombia. However, there are always two sides of the
coin. As the Brazilian Textile and Apparel Association (ABIT) states in its most recent Annual
Report:

“The opening of the domestic market to international competitors in the past decade, required
from the sector huge investments to modernize its machines, aimed at reducing costs and improving
the quality of their products in order to face competition from large producers and worldwide
suppliers, particularly some from Asian countries. Between 1990 and 2008 US$13 billion were
invested for the purchase of textile machinery and equipment of the last generation.”

And that’s what the Brazilian textile industry did.



Textiles Of Increasing Importance

Not only in Asia, but also in Brazil, the textile sector is of increasing importance for the
gross domestic product: Globally, Brazil ranks seventh in total textile production from fiber to
fabrics, and holds sixth place in apparel production. From 2004 to 2008, the number of textile
companies increased from 3,847 to 4,518. The number of spinning companies increased from 359 to 419
and weaving companies, from 448 to 601; while the knitting sector declined from 2,546 companies to
2,442. The biggest jump — more than 100 percent — was seen in the finishing sector, which grew
from 494 companies to 1,056. But the importance of apparel also is growing: the number of companies
changed from 16,531 in 2004 to 21,044 in 2008.

Innovation And Integration

ABIT President Aguinaldo Diniz Filho wrote in his opening remarks in ABIT’s 2009 Annual
Report: “The year 2008 was unusually challenging for all of us acting in the sector. To keep a
Brazilian company running with this scenario characterized by lack of confidence, scarcity of
financing, and yet, producing, employing and paying so many taxes in this environment of market
recession was a mission fit to be included among the Labors of Hercules. However, the sector was
able to transform an adverse reality into an opportunity to show creativity.

“Products with increased value added were able to create a differential to face the price war
with more basic products. The key words of this and the next decade are innovation and integration.
We are more than 30,000 companies in the chain, starting with fiber producers till garment making,
including spinning, weaving and knitting. The motivation to renew, to introduce novelties is a
daily must in each one of our companies, which have to evolve following a trend towards the
integration of all segments.”



ITMF Conference 2010

The next platform for the Brazilian textile industry to show its abilities and power is the
forthcoming annual conference of the International Textile Manufacturers Federation (ITMF). The
event will take place Oct. 17 – 19, 2010, in São Paulo. The

Textile Industries Media Group
, publishers of the Rupp Report and the magazines

Textile World
,
Textiles Panamericanos and

Textile World Asia
has again been selected to be the exclusive media partner for the event. More information on
the textile industry and its successes in Latin America in general, and Brazil in particular, is
yet to come. Stay with us!

March 23, 2010

The war of words over China’s currency policies is escalating, as members of Congress step up their
pressure on the U.S. and Chinese governments to address the issue, which they say amounts to an
illegal trade subsidy.

The latest development is the introduction of tough new legislation by 14 senators directing
the Treasury and Commerce secretaries to act if it is determined that China is a currency
manipulator. The key provisions of the Currency Exchange Rate Oversight Reform Act are as follows:

• The bill requires the Department of the Treasury to take “priority action” when it finds an
  undervalued currency.
• Using international guidelines, Treasury is directed to issue a biannual report that states if
  a country is “fundamentally misaligning” its currency.
• If that is determined, Treasury must immediately engage the foreign government to resolve the
  problem, and if the problem is not resolved within 90 days, the bill triggers punitive measures
  such as preventing the federal government from buying goods and services from the offending
  nation.
• If, after a year, the problem is not resolved, the U.S. Trade Representative is directed to
  bring a case to the World Trade Organization against that country.
• The bill requires the Department of Commerce to act when a U.S. company is hurt because of
  undervalued currencies.
• Commerce also is directed to investigate charges and impose penalties for other types of
  subsidies.

One of the new legislation’s sponsors, Sen. Debbie Stabenow, D-Mich., who has sponsored
similar but weaker legislation that has gotten nowhere in the past, said: “Our workers are losing
their jobs because countries like China continue to place artificial discounts of up to 40 percent
on their products and then sell them here at a cheaper price.  This unfair practice puts our
manufacturers and businesses at an extreme disadvantage and costs us jobs.”

The Senate legislation comes on the heels of a letter sent to the secretaries of Treasury and
Commerce last week by 130 House members urging Commerce Secretary Gary Locke to levy countervailing
duties on Chinese imports and calling on Treasury Secretary Timothy Geithner to brand China a
currency manipulator in a report due out April 15 dealing with currency manipulation throughout the
world. Both the Bush administration and the Obama administration have preferred negotiations with
China instead of legislation, and Geithner told the Associated Press last week he has not yet made
up his mind as to what he will do with China in the upcoming currency manipulation report.

The Chinese government has reacted sharply to all of these actions, saying it is not about to
be “bullied” into taking any action on its currency other than what it already has done voluntarily
and in China’s own self interests. The yuan has been pegged to the U.S. dollar since 2008, rather
than being permitted to float.

Chinese Premier Wen Jiabao says the Chinese yuan is not undervalued, and he warned that
politicizing the issue will not help in fighting the world economic crisis. “It would be unfounded
and meaningless for some people in the United States to back their calls for China to be labeled as
a currency manipulator by citing China’s trade surplus and U.S. deficit [and their effect on the
United States and] recovery needs.” He added that calling China to raise its currency rate in order
to help U.S. exports “would be an egotistical practice,” and that he hopes the United States will
be “an advocator of free trade rather than an obstructer.

In a dispatch from Beijing, the Washington Post quoted Chinese Commerce Minister Chen Deming
as saying that the United States will be the loser if it and China engage in a “trade war.” Chen
said: “If some congressmen insist on labeling China a currency manipulator and slap punitive
tariffs on Chinese products, then the Chinese government will find it impossible not to react. If
the United States uses the exchange rate to start a new trade war, China will be hurt, but the
American people and U.S. companies will be hurt even more.”

Charles Blum, executive director of the Fair Currency Coalition, which includes textile
lobbying organizations, said he believes the new Senate legislation will “enhance and reform” the
U.S. government’s oversight of foreign currency practices and “bring us one step closer to leveling
the playing field and … increase domestic production and put millions of Americans back to work.”

March 23, 2010

U.S. Trade Representative (USTR) Ron Kirk reports that what he says was an “extremely productive”
first round of negotiations on an eight-nation Trans-Pacific Partnership (TPP) has been concluded.
The five days of negotiations in Melbourne, Australia, were conducted with representatives of the
United States, Australia, Brunei Darussalam, Chile, New Zealand, Peru, Singapore and Vietnam.

At the conclusion of the negotiations, Kirk said: “TPP members have exchanged views openly
and started thinking creatively about how to best ensure a high-standard, regional agreement.”

President Barack Obama has strongly endorsed the TPP as a key element in his efforts to
double U.S. exports and create two million jobs in the next five years.

Because the agreement is in its earliest stages of formation, trade lobbyists in Washington,
for the most part, have held off on taking positions on it, except that the National Council of
Textile Organizations (NCTO) is strongly opposed to including Vietnam, which NCTO says “will be
another China” because of its non-market government-managed economy. NCTO President Cass Johnson
says it is too early to evaluate the proposed agreement, because key elements have not been
negotiated, but he said his association will seek a yarn-forward rule of origin, as it has in other
agreements. “This rule is important,” he said, “because it ensures that the benefits of the trade
agreement will stay within the region itself and not be given to third party countries.”

The American Apparel & Footwear Association (AAFA) has filed a statement with the USTR
saying it supports the TPP and outlining some advantages the association sees, including the
creation of markets for inputs and finished goods as well as the encouragement of new partnerships
with other countries. AAFA says the agreement should provide for “robust and transparent” short
supply provisions and protect the Berry Amendment that requires the Defense Department to buy
U.S.-made textiles and apparel.

Kirk said he will now be seeking further input from Congress and U.S. stakeholders on
negotiating objectives and approaches to key issues as the TPP members prepare for another round of
negotiations in June.

March 23, 2010

At the end of 2009, Korea-based Hyundai Engineering placed an order with Germany-based Oerlikon
Neumag for a complete staple fiber spinning plant. Oerlikon Neumag will supply two 200 ton-per-day
staple-fiber spinning lines and associated equipment, as well as install and commission the
machinery. The construction and installation is expected to begin this year, with production
beginning mid-2011.

“For this important project, we opted for Oerlikon Neumag as this company offers large
technology know-how and the expertise for our high demands,” said Beom Seob Sim, general manager,
Hyundai Engineering. “In addition, Oerlikon Neumag often showed that this company is a reliable and
competent partner for the development, production and installation of major staple fiber plants.”

March 23, 2010

Winston-Salem, N.C.-based apparel manufacturer Hanesbrands Inc. has received an Energy Star 2010
Partner of the Year award from the U.S. Environmental Protection Agency for its accomplishments in
strategic energy management. The company, which was selected from among 17,000 program
participants, has significantly reduced its energy and water usage as well as carbon dioxide (CO2)
emissions after beginning to track its carbon footprint in 2007.

“Working in partnership with Energy Star to manage our energy use is good business,” said
Richard A. Noll, chairman and CEO, Hanesbrands. “Using sustainable practices and conserving natural
resources to help mitigate our environmental footprint and to reduce costs are strategic ways we
are creating business value.”

Hanesbrands has increased its renewable energy usage to 30 percent and has announced a goal
to reduce CO2 emissions by 15 percent. The company also has reduced water usage per product
produced by 18 percent.

In addition to its comprehensive corporate global energy program, Hanesbrands has made
commitments to responsible manufacturing practices, introducing more eco-friendly products, and
reducing packaging waste. The company is a member of the U.S. Green Building Council and is seeking
certification of its new buildings under the council’s Leadership in Energy and Environmental
Design (LEED), with three facilities already LEED-certified and four additional facilities in the
process of becoming certified.

March 23, 2010