Since before the history of mankind was written down, people have moved from one place to another.
It is also often the case that companies open branches all over the world. But it rarely happens
that a company changes its owner — and, therefore, its name — many times, while keeping its
experience and know-how. That company has come a long way from the beginning to the current
ownership, and it seems that this trail has come to a happy ending, as the Rupp Report observed
during a visit to its premises in France.

System Provider

SwissTex Winterthur AG is a Switzerland-based textile machinery manufacturer and a system
provider with a deep expertise in bulked continuous filament (BCF) and technical and industrial
(T&I) extrusion processes for the filament yarn markets. The filament business unit formerly
was part of the Switzerland-based Rieter Group. For years, SwissTex has offered complete extrusion
systems and now is expanding its product range. The company has 75 employees and also runs a
technical trial center that includes pilot plants for BCF as well as T&I yarns.

A Multitude Of Names

The multiple name changes happened to SwissTex’s French subsidiary in Valence, France. Brands
such as Verdol and ARCT are well-known in the older community of textile people. Then it became
ICBT, owned by Bernard Terrat, former president of CEMATEX. When Rieter started its activities in
man-made fibers and nonwovens, it bought ICBT from Terrat, and the new name was Rieter. However, a
few years ago, Rieter decided to move away from the filament business, and the company again
changed its ownership and became RITM.

In spite of growing success in the man-made fibers markets, and particularly filaments, RITM
suffered as did many companies in the crisis of 2008 and 2009. Rumors in the markets predicted the
end of the company. But in April 2010, SwissTex acquired RITM and it became SwissTex France S.a.s.,
a 100-percent affiliate of SwissTex Winterthur AG. The French company is specialized and has
process expertise in machinery in twisting, assembling, cabling, covering and winding of yarns made
of man-made, natural as well as mineral fibers. It also designs and manufacturers machines for
technical yarn markets such as carpets, industrial and tire applications and glass; but also for
the textile yarn markets.

Today’s production of carpet yarns is a challenge requiring flexibility, creativity and
market knowledge. Thanks to this acquisition, SwissTex says it now offers complete filament yarn
processing solutions to its customers.

Activities

SwissTex’s activities include process technology, key components, process design engineering,
manufacturing and sourcing as well as after-sales service.

The company provides a full range of BCF components, upgrades and integrated systems in two-
or four-end configurations for the processing of polypropylene, polyamide and polyethylene
terephthalate yarns for rugs, carpets and tufted floor coverings; upholstery applications; as well
as automotive applications. For T&I yarn processes, SwissTex has a broad system called symTTec
that is said to meet the requirements of a wide range of end-uses. The company also provides
individual components such as extruders, spin beams, draw rollers and winders. The necessary
process expertise can also be provided.

Expansion

Thanks to its new setup, SwissTex is looking into the most promising markets such as Asia,
and China in particular, and has opened a sales and support office in Shanghai. CEO André Lienert
has said that this move allowed his company to set new milestones, noting, “The combination of
strong international experience and a keen understanding of local market conditions guarantees
improved service for the customers.”

The Rupp Report prefers to report more about good news than about failed companies. One can
say that the future looks sound for the newly formed SwissTex group. It has a solid financial
background and a lot of experienced and professional people. “We master the filament yarn
technology,” Lienert said in his opening speech during the presentation at SwissTex France. Is the
long trail now over, and can the company also master its future? Time will soon tell — earliest at
the next ITMA in Barcelona, Spain.



February 1, 2011

Scorpio Acquisition Corp. — an affiliate of Blackstone Capital Partners V LP, New York City — has
acquired Charlotte-based nonwovens producer Polymer Group Inc. (PGI). PGI announced last October
that it had agreed to be purchased by Blackstone
(See ”
Blackstone To
Acquire PGI,” www.TextileWorld.com, Oct. 5, 2010). The acquisition was funded through a
combination of new senior secured notes and a substantial equity contribution by affiliates of
Blackstone.

“The sale to Blackstone is the culmination of our strategic review process and we believe
that this transaction represents the best value alternative available to our stockholders,” said
Veronica “Ronee” M. Hagen, CEO, PGI. “Blackstone is committed to supporting our strategy of
continued growth and investment in proprietary capabilities in our markets around the globe. The
leadership team and all of the employees of PGI are excited to begin the next chapter at PGI and to
maintain our position as a global industry leader.”

“Blackstone is excited to close on the acquisition of Polymer Group,” said Anjan Mukherjee,
a senior managing director of Blackstone. “We look forward to working with the management team to
further enhance the company’s already strong global position and reputation and to extend its reach
into new products and markets.”



February 1, 2011

Mount Pleasant, N.C.-based specialty yarn spinner Tuscarora Yarns Inc. has announced it will invest
$6.3 million to relocate its China Grove, N.C., plant to a larger, more modern facility. The
company has received a $146,000 grant from the One North Carolina fund to help fund the expansion.
Tuscarora plans to add 124 jobs at the plant, which currently employs 57 people.

“The town of China Grove, Rowan County, the county [Economic Development Council], and the
State of North Carolina have all been very supportive of our efforts to expand here,” said Martin
B. Foil Jr., CEO, Tuscarora Yarns. “It’s relationships such as these and Duke Power that optimize
our opportunities for success in these challenging business conditions. Our China Grove location
has served well for the past 25 years. Increasing our investment through new equipment, machinery
along with new jobs will allow exciting opportunities at this new location.”

Tuscarora recently announced it is investing $3.5 million to expand its Clover, S.C., plant,
with the expectation of creating 40 jobs over the next three years
(See ”
Tuscarora
To Expand Clover, S.C., Plant,” www.TextileWorld.com, Dec. 21, 2010).

February 1, 2011

Five organizations representing interests of the U.S. textile industry have sent a letter to
members of Congress urging defeat of the pending U.S.-Korea Free Trade Agreement (KORUS), and a
campaign has begun to include the voices of the wider community in a grassroots expression of
opposition to the treaty.

Last month, officers of the American Fiber Manufacturers Association (AFMA), American
Manufacturing Trade Action Coalition (AMTAC), National Council of Textile Organizations (NCTO),
National Textile Association (NTA) and U.S. Industrial Fabrics Institute (USIFI) signed the letter,
which charges that the agreement “is seriously flawed and will result in the continued outsourcing
of valuable textile, apparel and other manufacturing jobs.”

Negotiations between the United States and South Korea concluded in December 2010, and the
final language included in the pact is slated for release to the public this month. Last week, the
House Ways and Means Committee held a hearing on KORUS as well as the pending Panama and Colombia
free trade agreements (FTAs), and all three treaties are expected to be debated and voted on by
both houses of Congress soon.

According to the Obama administration, the agreement is expected to boost U.S. exports by $10
billion to $11 billion and support 70,000 U.S. jobs. While U.S. auto makers have been singled out
among the beneficiaries of the pact, the manufacturing sector as a whole purportedly stands to
benefit from the elimination of tariffs on more than 95 percent of industrial and consumer products
within five years of ratification of the agreement. Customs enforcement and rules of origin —
points that have been of major concern to the U.S. textile industry — are also addressed. However,
according to the letter, specific fixes requested by the industry have not been addressed. Industry
concerns center around loopholes in enforcement provisions that favor China, a tariff schedule that
favors Korean exporters over U.S. exporters and the exclusion of textile components under
rules-of-origin provisions that give an advantage to non-signatory nations such as China.

The letter also disputes the job creation claims by the administration, citing an Economic
Policy Institute analysis that estimates 159,000 U.S. jobs will be lost if KORUS in its current
form is enacted — with 9,300 to 12,300 of those jobs attributed directly to the textile industry
and a total of 40,000 jobs both directly and indirectly related to textile and apparel activities.

In an effort to gain grassroots textile industry support for the defeat of KORUS, NCTO has
organized a petition campaign to gather signatures from individuals opposed to the pact. More
information is available at
www.ncto.org.

February 1, 2011

Providência USA Inc., the U.S. subsidiary of Brazil-based nonwovens manufacturer Companhia
Providência Indústria e Comércio, last week celebrated the opening of its $80 million manufacturing
facility in Statesville, N.C., and announced that it would invest an additional $60 million on a
facility expansion, with construction expected to begin this month. The current and planned
investments combined represent the largest manufacturing investment announced in Statesville in
nearly a quarter century.

In addition to company executives, state and local government officials including North
Carolina Governor Beverly Perdue participated in the official ribbon-cutting ceremony at the
facility.

“This marks a new era in the company’s history: the international expansion of its
operations, will initially serve US clients currently exporting from Brazil,” said Providência
President Hermínio de Freitas. “This will account for approximately 50% of the new plant’s
production capacity. Furthermore, we will have the ability to supply new customers in the
disposable hygienic segment and focus in the healthcare segment. Not to mention we will supply
other regions in which we were not competitive, such as Mexico.”

“Providência is an example of how our textiles industry is transforming, and the company’s
leaders know that North Carolina will provide a highly-skilled workforce and top-rated business
climate that will fuel Providência’s innovation and growth,” Perdue said.

In phase one of the project, Providência built a 90,000-square-foot state-of-the-art facility
and installed a Reicofil spunbond line to manufacture nonwoven fabrics for use in disposable
hygiene products such as diapers, sanitary pads and medical/surgical drapes and gowns. The plant
currently employs 53 workers, with three more to be hired in the next month, has an annual
production capacity of 20,000 tons and already has a backlog of orders from customers. In phase
two, which is expected to be completed in the second half of 2012, the company will install a
second spunbond line, add 28 more employees and double production capacity to 40,000 tons.

February 1, 2011