The Rupp Report: Monforts Reshaped – And Successful

After 127 years of being at the same address in Mönchengladbach, Germany, traditional textile
machinery manufacturer A. Monforts Textilmaschinen GmbH & Co. KG will leave its headquarters
and move to new premises at the so-called “Schlafhorst Businesspark” in Mönchengladbach. One may
say, and especially for its tenter frames, that Monforts is an internationally recognized label of
quality for finishing machinery. The company employs 148 people at its site in Germany and some
1,000 worldwide. And the results for 2010 are very positive.

Shorter Ways

Monforts is one of the global market leaders in textile finishing machinery, with an export
share of more than 90 percent and a newly rented office space of some 2,200 square meters and
production area of about 3,700 square meters. The Rupp Report asked Klaus A. Heinrichs, vice
president, marketing, about the reasons for the move: “Well, of course,” he said, “there is some
melancholy over leaving the old site. However, we can’t win anything with melancholy. With the new
premises at the business park, we will improve a lot. The internal channels are much shorter; the
organization is much leaner and more compact.”

Nothing In Common With Other Group Members

The people who know Monforts’ old premises are aware of the fact that all the divisions and
productions sites were spread all over a huge area at the Schwalmstrasse. The company was acquired
in March 2006 by the holding company L. Possehl & Co. mbH, but the other companies of the
Possehl Group have nothing in common with Monforts’ textile machinery activities. “This is another
reason to concentrate Monforts’ textile core business in one place,” Heinrichs said.The Possehl
textile finishing business unit — including the Monforts production centers in Mönchengladbach; St.
Stefan, Austria; and Monforts Fong’s Textile Machinery Co. Ltd., a joint venture (JV) with Fong’s
Industries Co. Ltd. in Shenzhen, China — is gaining ground. “On the Chinese market alone, we could
sell almost 1,200 finishing lines from the joint venture production,” Heinrichs explained. JV
project management, however, is in the hands of the people in Mönchengladbach.

Parent Company’s Best Result Ever

The Possehl Group is a diversified group that comprises nine independently operating
divisions organized within a decentralized structure. The group includes L. Possehl & Co. mbH
and its 130-plus subsidiaries in more than 30 countries. Net group sales totaled some 1.72 billion
euros for fiscal year (FY) 2010. The company has approximately 8,600 employees worldwide, with more
than half based in Germany. This represents an increase of 2,300 employees, or 36 percent, over the
previous year, and reflects mainly acquisition activities concentrated in the domestic market.

Heinrichs said that for FY 2010, Possehl realized the best operating result in its 163-year
history, leaving the crisis year of 2009 far behind. FY 2010 preliminary earnings before taxes
(EBIT) are reported to be approximately 81 million euros and exceeding the record earnings reported
in FY 2007 by some 8 percent. All corporate divisions realized profits last year.

The Rupp Report also asked about Monforts’ share in terms of turnover and benefit. Heinrichs
replied that “A. Monforts Textilmaschinen GmbH & Co. KG, together with the joint venture
Monforts Fong’s, contributed a considerable amount worth millions to the pleasing results of the
Possehl Group.” Even in 2009, when the markets were quite shaky, Monforts achieved a positive
result.

It was reported that many of the group’s companies posted record profits, and emerged from
the crisis stronger than before. Possehl also benefited from the global economic recovery.

Solid Cash Flow

Consolidated net sales totaled a record 1.72 billion euros, returning Possehl to a track for
long-term growth after only one year of decline. The company reported sales increases were
strongest in the domestic market, which now accounts for well over 50 percent of total sales.
Excluding acquisitions, sales rose by some 33 percent, much greater than most industries in
Germany. In addition to rising orders reported by nearly all group divisions, increased commodities
and precious metals prices — particularly for gold — boosted sales.

The group’s net cash position improved despite the strong organic and acquisition-related
growth in FY 2010, although Possehl financed all acquisitions entirely using its existing cash
holdings. Year-end net cash totaled 48.7 million euros, compared with 28.1 million euros at the end
of FY 2009, and Possehl continues to remain debt-free on a net basis.

Promising Future

Possehl reported that the excellent capitalization and liquidity also creates sustained
growth opportunities — including additional acquisitions — going forward. Heinrichs’ look toward
the future is positive: “After the consequences of the economic crisis, the atmosphere has
brightened up further thanks to an increasing demand for our machines. We at Monforts want to
further enhance the good result from the previous year. The markets in general and particularly in
Latin America, but also in Asia, are further showing a stable upswing.”

And how does Heinrichs judge the impact of Possehl’s acquisition in the last five years? “The
Possehl philosophy of a long-term commitment secures and tightens further the strong position of
Monforts as a premium supplier of German high-tech textile machinery,” he said.



March 1, 2011

Bluestar Silicones To Open Plant In Charlotte

China-based Bluestar Silicones — a global manufacturer of specialty silicone products including
coatings, elastomers, fluids, emulsions and resins for the textile coatings, personal care,
healthcare, paper and packaging, automotive, aerospace, tire and rubber, mold making and energy
industries, among others, and a subsidiary of China National Bluestar (Group) Corp. — will invest
$19.8 million to open a facility in Charlotte, creating 125 jobs in the process. The company will
consolidate its U.S. manufacturing operations into one facility and has received a $340,000 grant
from the One North Carolina Fund to help finance the opening of the plant. 

“We are excited about this move to Mecklenburg County and appreciate the efforts of North
Carolina to make this a win-win for both North Carolina and Bluestar Silicones,” said J.
Christopher York, president, Bluestar Silicones North America, East Brunswick, N.J. “For Bluestar
Silicones, this move is an important step in implementing an aggressive growth strategy to become a
world leading supplier of silicones in the coming five years.”

Bluestar Silicones operates 11 production sites in China, Europe, Latin America and the
United States, has sales offices in 140 countries and employs 3,000 people. The company’s sales in
2008 totaled 600 million euros.

March 1, 2011

Hamrick Mills Honored By Cherokee County Chamber Of Commerce

Hamrick Mills, Gaffney, S.C., was among several companies and individuals to be honored at the
Cherokee County Chamber of Commerce’s recent annual awards banquet. The fifth-generation
family-owned textile manufacturer, winner of the chamber’s Business of the Year award, was
recognized for its long-standing success and for its contributions and service to the local
community.

Hamrick Mills, established in Gaffney in 1900 by Dr. Wylie C. Hamrick and other investors
under the name Limestone Mills, originally manufactured window shade cloth and today operates two
vertical spinning and weaving mills that produce light- to medium-weight fabrics for apparel, home
furnishings and industrial applications. The company currently is led by members of the third,
fourth and fifth generations of the Hamrick family; and its workforce including manufacturing,
supervisory and corporate personnel totals approximately 370 people.

“Hamrick Mills is one of the most important companies in Cherokee County,” said Kayla Robbs,
executive director, Cherokee County Chamber of Commerce. “It is still a strong and very vibrant
company within the textile industry, and a very well-loved company in this community. A lot of
people have ties to the company — their parents and grandparents worked for Hamrick Mills over the
years — and people have very warm, strong, positive feelings about the company. We were really
happy to be able to recognize Hamrick Mills.”

“Hamrick Mills is a long-time member of the Cherokee County and the South Carolina Chambers
of Commerce. Members of the Hamrick family and employees of the company are very active in the
various activities and functions within the county, the city of Gaffney and the state,” said Jim
Hopkins, sales and marketing manager, Hamrick Mills. “The company plans to continue to provide a
source of employment to the people of Cherokee County and surrounding communities and
maintain/sustain textile operations for the generations to come.”

March 1, 2011

CAFTA-DR Partners Agree To Fix Technical Flaws In Agreement

The Dominican Republic-Central America-United States Free Trade Commission held its first meeting
last week in El Salvador. The commission celebrated the fifth anniversary of the implementation of
the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) by the United States and El
Salvador, and noted that the agreement has resulted in growth in two-way trade between the United
States and its partners in the agreement, from $35 billion in 2005 to $48 billion in 2010.

Textiles and apparel have been important components of this trade, and the commission
approved several changes to related CAFTA-DR rules of origin that are expected to benefit the
Western Hemisphere textile/apparel supply chain. These changes include, among others, a correction
to the definition of sewing thread that adds single multifilament yarns used as sewing thread to
the category – a move supported by both the National Textile Association (NTA) and the American
Manufacturing Trade Action Coalition (AMTAC) – and an increase in cumulation limits that the
commission says will “encourage greater integration of regional production through limited
reciprocal duty-free access with Mexico and Canada to be used in Central American and Dominican
Republic apparel.

“AMTAC hailed the move to correct technical errors in the agreement. “On behalf of all U.S.
thread producers, we want to thank the Obama administration, especially Assistant U.S. Trade
Representative for Textiles Gail Strickler and the U.W. Commerce Department’s Deputy Assistant
Secretary for Textiles and Apparel Kim Glas, for their tireless commitment to fix this longstanding
problem,” said Auggie Tantillo, executive director, AMTAC.

“Today’s fix is a job-creating win-win for U.S. sewing thread producers and their DR-CAFTA
counterparts,” he added. “With the closing of this unintended loophole, we believe that U.S. thread
producers can begin to recapture market share in the important DR-CAFTA market, leading to more
jobs.”Under the original agreement, regionally produced sewing thread must be used for all
products, including apparel and home furnishings, that would qualify for duty-free treatment.
However, under the original definition of sewing thread, single multifilament yarns used as sewing
thread are not included in that requirement, allowing such yarns to be sourced from thread
suppliers from outside the CAFTA-DR region.

In order for the changes to take effect, the U.S. Congress as well as legislative bodies in
the other CAFTA-DR partners now must pass legislation implementing them.



March 1, 2011

ASTM International Selected As Third Party Certifier For USDA’s New Biobased Label

W. CONSHOHOCKEN, Pa. — February 23, 2011 — ASTM International has been selected to provide
certification for the U.S. Department of Agriculture biobased labeling program, a voluntary
initiative to identify biobased products and to promote their sale among consumers seeking to
purchase goods using renewable resources. 

As the selected provider, ASTM International will manage the Certification Program for
Biobased Products, which will determine the product and package biobased content for manufacturers
and vendors that choose to participate. The products will be tested by an outside accredited
laboratory according to ASTM standard D6866, Test Methods for Determining the Biobased Content of
Solid, Liquid and Gaseous Samples Using Radiocarbon Analysis.

Kenneth Pearson, ASTM International senior vice president who oversees certification
programs, notes the benefits of ASTM’s involvement, “ASTM’s role in the biobased labeling program
puts our strengths to work on behalf of manufacturers who want to demonstrate their commitment to
renewable resources, the labs that will provide the testing and the consumers interested in buying
such goods.” 

ASTM standard D6866, which is the responsibility of ASTM Committee D20 on Plastics, can be
used for products containing carbon-based components that can be combusted in the presence of
oxygen to produce carbon dioxide gas. According to the USDA, tested biobased products with the
appropriate content from renewable sources should reduce petroleum consumption, reduce adverse
environmental and health impacts, and improve economic development by creating new jobs and
providing new markets.

In 2002, USDA launched the BioPreferred program to identify biobased products, those with
renewable plant, animal, marine or forestry materials as their main ingredients. The Biobased
Labeling initiative, launched in February 2011, demonstrates that an individual product has been
tested and certified to have the minimum biobased content determined for a particular USDA
identified product category or be at least 25 percent biobased for those products where a product
category has not yet been established. According to USDA Deputy Secretary Kathleen A. Merrigan,
“With a plethora of labeling claims in the marketplace, consumers want to know that what they are
investing their dollars in is meaningful, that it is backed by some sort of certification. ASTM,
working with USDA, will provide that certification.”

To begin the process to have a product or packaging certified for the biobased program, go to
www.biopreferred.gov. Once accepted into the program,
manufacturers will be directed to the ASTM Certification Program for Biobased Products at
www.astm.org/certification.

Posted on March 1, 2011

Source: ASTM International

Sciessent LLC Acquires Agion Technologies

Wakefield, Mass.-based Agion Technologies Inc. — a provider of antimicrobial and odor-control
technologies for textile, medical and industrial applications — has been acquired by Sciessent LLC,
a startup established and headed by Agion’s senior management team. Sciessent has acquired Agion’s
intellectual property assets, including the company’s portfolio of 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.  “In addition to the
established brands Agion and Agion Active, we are committed to innovation and expanded application
of existing solutions and integration of other complementary technologies. More importantly,
building upon the strengths and expertise of our leadership and technological teams, we are also
committed to the discovery, development and implementation of next generation environmentally
responsible technologies.”

Sciessent expects the transition will not affect Agion’s customers.

March 1, 2011

Land ‘N Sea Chooses NGC For PLM And Global Sourcing

MIAMI — February 22, 2011 — NGC Software today announced that Land ‘N Sea, a private-label women
and children’s apparel manufacturer, has selected NGC’s PLM and Global Sourcing software. NGC will
help Land ‘N Sea respond even faster to fashion trends, improve collaboration and efficiency
throughout the product development and production process, and deliver extraordinary service to
retailers, such as Walmart, J.C. Penney, T.J.Maxx and Kmart.

NGC’s end-to-end solution for PLM and Global Sourcing goes far beyond the scope of standalone
PLM solutions, encompassing every facet of the design and production process, including: Line
Planning and Tech Pack Management; Material and Component Development; Artwork and Sample
Management; Product Costing and Sourcing; Production and Logistics Management; Quality; and Product
Testing and Compliance. Comprehensive, easy-to-use workflow calendars, alerts and exception
management will help Land ‘N Sea improve productivity and efficiency, which will reduce lead times,
improve speed to market and increase full-price sales and profitability.

NGC’s software also includes raw materials management, which will allow Land ‘N Sea to
closely manage the purchase and usage of all raw material inventories located around the world.
With NGC’s raw materials management capabilities, Land ‘N Sea will be able to instantly access
detailed information on raw materials in all locations worldwide at all times – a key to improving
efficiency and controlling costs.

“NGC’s PLM and Global Sourcing software will enable us to significantly improve real-time
collaboration with our retailers about production orders, while enabling us to quickly deliver high
quality goods at controlled costs,” said Robert Sobel, Co-President, Land ‘N Sea, Inc. “We believe
that NGC’s software will be a strategic investment in improving customer service.”

“NGC is excited to help bring higher levels of success and profitability to Land ‘N Sea
through our PLM and Global Sourcing tool,” said Mark Burstein, president of sales and marketing,
NGC. “We look forward to helping Land ‘N Sea roll out their new product lifecycle management system
and will ensure that the company takes advantage of the many benefits of NGC’s software.”

Posted on March 1, 2011

Source: NGC Software

Women’s Luxury Brand Magaschoni To Implement FashionManager ERP/PLM

LYNDHURST, N.J. — February 25, 2011 — RLM Apparel Software Systems Inc. announces that women’s
luxury fashion brand Magaschoni has begun implementation of the FashionManager™ enterprise software
solution at its Manhattan headquarters. The 40-user system will replace multiple legacy financial,
product lifecycle management (PLM), and enterprise resource planning (ERP) systems with a single,
fully-integrated business solution. Magaschoni expects this streamlined and updated computing
platform to support better informed, more timely business decisions by improving accessibility and
visibility of information across the design, production, sales, retail, accounting, and management
teams.

“Our existing systems were added independently over a period of 10-15 years,” explained
Executive Vice President and Chief Financial Officer, Kevin Mogyoros. “The current lack of
integration limits our ability to share information and track performance in a timely and accurate
manner. In RLM, we found a technologically advanced system and company that meets and exceeds all
our needs with a single, comprehensive solution. With FashionManager, we look forward to gaining
more control and visibility across our entire company.”

In addition to an on-premise installation at its New York offices, Magaschoni will deploy
FashionManager at its New Jersey warehouse operations. Global vendor partners will also gain access
to the system, while integration with existing sales and e-commerce systems will extend benefits to
the company’s retail channel.

“In a project that touches every aspect of the business, we knew that we needed a partner
that we could trust and depend on well into the future,” added Mogyoros. “We have this level of
comfort with the RLM team and the technology that they deliver.”

“We are pleased with the opportunity to work with Magaschoni”, noted RLM Vice President of
Development, Andy Lynn. “We applaud the work they have done to define their system requirements and
business needs. We are confident that they will leverage the full power of FashionManager to
support their impressive and growing operations.”

Posted on March 1, 2011

Source: RLM Apparel Software Systems

WGSN Moves Their LA Headquarters To CMC

LOS ANGELES — February 25,  2011 — WGSN, the leading online source of creative intelligence
for the  apparel, design and retail industries, has relocated their West Coast 
headquarters to the California Market Center (CMC). The company will  take a 1500 square foot
space in suite C1137, headed by Sally Lohan, Head  of Content, Americas.  

“With our recent acquisition of  LA based Denimhead, the launch of our dedicated
interiors product  WGSN-HomeBuildLife, and our heightened commitment to the Juniors
market,  now is the right time for WGSN to move to an office that is in the heart  of Los
Angeles’  fashion district,” stated Steve Markov, President of  WGSN. “The California
Market Center was the obvious choice to house our  West Coast team.” 

WGSN is a leading online  trend-analysis and research service providing creative and
business  intelligence for the apparel, style, design and retail industries. The company is
also a frequent trend-partner with the CMC for The Los  Angeles International Textile Show (LA
Textile) and presents free,  trend-oriented retailer seminars at the CMC throughout the year.
Their 150-strong editorial and design staff continually travels the globe  to deliver insight
and creative inspiration, real-time retail coverage,  seasonal trend analysis, consumer
research and business  information. 

 “We are thrilled to have WGSN as  a new tenant in the building,” said Sue
Bhanubandh, Senior Vice President  of Leasing for the CMC.  “This will be a great new
resource for our  fashion, gift & home tenants. We look forward to future
collaborations  together.”

Posted on March 1, 2011

Source: California Market Center

DEFLEXION™ Technology From Dow Corning Featured In New Equipment By Scott Sports

MIDLAND, Mich. — Feb. 28, 2011 — Dow Corning today announced that DEFLEXION™ material, a
patent-pending protective textile, is featured by Scott Sports in its new line of winter sports
gear. Deflexion technology, a silicone-based material that shields the body from the force of
external impact, was showcased in new Scott Flex back protectors that were featured this month in
Munich at the International Trade Fair for Sporting Goods and Sport Fashion (ISPO).

The new back protectors are designed to provide professional skiers and winter sports
enthusiasts a comfortable protective solution that performs even in sub-zero temperatures.
Deflexion technology adds a breathable protective layer to Scott Flex back protectors without
sacrificing comfort or flexibility, both of which are essential to skiers. In addition to the
high-impact protection layer made from Deflexion material, the Scott Flex features adjustable chest
straps, removable and adjustable leg loops, and hip belts with Velcro closures. Scott Flex back
protectors will continue to feature protective plates made from d3o™, but the addition of Deflexion
technology is expected to optimize the protective qualities of the product and ensure breathability
and protection and flexibility at low temperatures.

“We’re thrilled to have Deflexion technology featured in Scott Flex,” said Liz Mallen,
business development manager for Dow Corning. “Winter sports are an ideal application for Deflexion
material. The skier will experience the breathable nature of Deflexion technology and the
performance and suppleness it brings at below freezing temperatures.”

Deflexion technology has become a protective textile of choice for leading active apparel
designers. Scott Flex is the fourth piece of active sporting apparel to feature Deflexion
technology. In November of 2010, Dow Corning announced that Deflexion technology is being featured
in sailing gear made by marine apparel brand Henri Lloyd for use by competitive sailors and
nautical enthusiasts. Deflexion technology is also featured in vests made by RodeoTech for use by
rodeo professionals who need freedom of movement, but powerful protection during rodeo
competitions. Deflexion technology has also been featured in jackets and other protective equipment
made by Rukka for use by Motorcycle riders.

Posted on March 1, 2011

Source: Dow Corning/PR Newswire

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