Looking back over the past year, one must say, it was amazing. After the nightmares of 2008 and
2009, the world markets recovered in general and the textile and the textile machinery industry in
particular.

As the Rupp Report has already reported in the past weeks, there is hope for 2011: Many
companies are reporting an upswing, even in so-called high-labor-cost countries.

Higher Demand …

For the Swiss textile machinery suppliers, Asia is still in the foreground of an increased
demand. They also are noticing a trend toward improved quality, mainly in the spinning sector. This
trend has been confirmed especially by people from Uster Technologies AG and Loepfe Brothers Ltd.
Werner Schlaepfer, Loepfe’s head of marketing, said sales for yarn clearers — that is to say,
products for quality control — are soaring. The problem, as mentioned in a previous report, is
still the supply of raw materials. But, say the manufacturers, it’s not that easy to get better
prices. Yet, everybody is certain that 2011 will be an even better year, thanks also to the
forthcoming ITMA 2011 in Barcelona.

Dr. Lukas Sigrist, secretary general of the Textile Machinery Division of SWISSMEM, has
noticed a considerable upswing of the Swiss textile machinery industry too. From January to
September 2010, textile machinery exports from Switzerland increased by 46.4 percent, compared with
the same period last year. The general situation is as follows:

These figures don’t include the sales from the manufacturers’ own production plants in Asia.

… And In Particular From Asia

It is no surprise that the Swiss manufacturers are also enjoying the biggest increase from
Asia. China, up by 14.2 percent; India, by 12.6 percent; and, astonishingly, Japan, by 4.5 percent,
show the largest increasing export figures, followed by Taiwan, Thailand and South Korea.

The figures also reflect the upswing by some countries in Europe: Germany, with an increase
of 7.1 percent; and Italy, with a 6.0-percent increase, demonstrate a more favorable market
environment.

But also in the Americas, there is an improvement in the markets: In spite of strict import
regulations, the booming country of Brazil shows an increase of 4.8 percent; and the United States
is also recovering, with a 3.8-percent increase.

Sigrist is convinced that the positive trend will go on. And the forthcoming ITMA in
Barcelona will give the market a further kick. The only clouds for the moment are the volatile
situation among the major currencies such as the U.S. dollar, the euro and the renminbi. Of course,
the current cotton prices play some role in this context.

Weaving

Not only for spinning, but also for weaving, the suppliers are noticing increased demand from
the markets. Stäubli Sargans AG, producer of dobby and jacquard machines for virtually every
weaving machinery producer, is reporting increasing demand from certain market areas such as Asia
for the latest dobby and jacquard machines as well as for carpet machinery. And this demand was
confirmed by the management of the Switzerland-based European headquarters of Toyota Textile
Machinery Division. “We are back to regular sales turnover,” said COO Robert Bieri and Sales
Manager Rudolf Feucht.

Traceability

Narrow fabric machinery producer Jakob Müller Ltd. confirmed an increasing number of orders
around the world too, but mainly in Asia. Today, digital printings on narrow fabrics are enjoying
larger interest to differentiate products. Eduard Strebel, manager, marketing services, said there
is another increasing quality control issue, namely, product piracy and the demand for equipment
that is able to identify a product and trace its life along the whole production chain. The Rupp
Report will come back to this issue in the future.

December 14, 2010

The European Committee of Textile Machinery Manufacturers (CEMATEX) – owner of the ITMA textile
machinery exhibition – and the Brussels-based European Apparel and Textile Federation (EURATEX)
have signed a memorandum of understanding for closer collaboration in research, technological
development innovation and industry promotion.

At the signing, CEMATEX President Steve Combes and EURATEX President Dr. Peter Pfneisl noted
that research and technological innovation are of increasing importance if the European textile,
clothing and machinery industries are to maintain a global competitive advantage. They also
outlined plans for upcoming joint activities, the first of which will be a European Textile
Research Pavilion at ITMA 2011, which will take place in Barcelona, Spain, Sept. 22-29, 2011. At
the pavilion, the organizations will host a European Commission delegation, among other visitors.
CEMATEX also will offer a 60th anniversary grant to exhibitors from research and education
establishments.

“I would like to ensure our colleagues from CEMATEX that the European textile and clothing
industry will not stop in its relentless efforts to innovate in its products and processes to
always remain one step ahead of our global competition,” Pfneisl said. “These innovations are
unthinkable without the right machines and equipment with the right functionalities and capacities,
available at the right time. We don’t see anybody better placed to provide us with these innovation
tools than our colleagues from the European textile machinery industry and we look forward to fill
this collaboration agreement at European level with a wealth of mutually beneficial activities for
many years to come.”

“We are keen to participate in EURATEX initiatives such as the European Technology Platform
for the Future of Textiles and Clothing,” Combes said. “We are all familiar with the idea of the
whole being greater than the sum of the parts. We believe that EURATEX and CEMATEX, pooling our
talents and abilities towards a common purpose, will accomplish more than continuing to work
independently. A united textile-making and textile machinery cluster will consolidate our position
in the global market, and help increase our market share.”

December 14, 2010

Pittsburgh-based Biosafe Inc., a producer of antimicrobial products, recently was awarded a
composition of matter patent by the U.S. Patent Office for its antimicrobial siloxane polymer.
Biosafe reports the polymer resists leaching and migration by bonding on a molecular level to the
treated surface of nonwovens, films, sheets, molded plastics, metals, wood and other substrates.
Once applied, the polymer provides protection against bacteria, mildew, mold and fungi; and, by
puncturing and rupturing the cell walls of the microbes it is targeting, can stop the microbes from
mutating and adapting to the antimicrobial environment. According to Biosafe, this behavior can
prevent the so-called “super bugs” that currently are causing cross-infection problems in hospitals
and clinics from developing.

The company reports its polymer is less expensive than silver ion-based antimicrobial
products because it can be applied at lower concentration levels. Biosafe’s antimicrobial is
suitable for apparel, sporting goods, building products, medical devices and portable electronics,
among other end-uses.

“The effectiveness of Biosafe antimicrobial can be gauged by its truly remarkable spectrum of
activity and diversity of applications,” said Max Fedor, president and CEO, Biosafe. “In medical
products, Biosafe polymer is being used to combat harmful bacteria and viruses commonly encountered
in clinical settings. Medical textiles treated with the polymer have demonstrated a 99.999-percent
[5 log] reduction of certain microorganisms within five minutes. Among the microbes involved in
tests required for submission to the FDA were [methicillin-resistant
Staphylococcus aureus], [vancomycin-resistant
Enterococcus], Influenza A and
Staphylococcus aureus.”



December 14, 2010

Switzerland-based Sanitized AG — a producer of antimicrobial hygiene products and material
protection for textiles and plastics — has introduced Sanitized® T20-19 antimicrobial fabric finish
to the North American market. The finish is designed for cotton and cotton-blend items requiring
high-wash durability including apparel such as underwear, outerwear, workwear, sportswear and
outdoor wear; home textiles such as upholstery, bath towels, terrycloth and table linens; bedding
textiles such as mattresses, mattress protectors and bed linens; and technical textiles for filter
systems and nonwovens applications.

The active ingredient in Sanitized T20-19 is quaternary ammonium salt, which not only
prevents bacteria growth and reproduction but also acts as a chemical anchor through an organic
silicium function, which forms a stable and highly wash-resistant bond with all cellulosic fibers.
According to Sanitized, application of the finish requires less solvent to be used than for other
antimicrobial finishes, offering benefits including reduced cost, decreased flammability, improved
work with textile effects such as thermomigration and colorfastness, and reduced product remaining
in the wastewater. Sanitized T20-19 also is bluesign® approved and meets Oeko-Tex® Standard 100,
Class I-IV, requirements.

“We developed Sanitized T20-19 not only as a more economical but also a more ecological
choice,” said Darrell Burnette, North American business development manager, Sanitized AG. “Because
it is easy to apply during either the pad or exhaust processes, textile manufacturers will find it
a less expensive way of providing their customers with more high-wash durability. Meanwhile, the
customers feel the freshness and comfort in wearing cotton or cotton blend clothing treated with
the Sanitized T20-19 antimicrobial finish while benefiting from its ability to reduce bacterial
odors and to withstand frequent washings.”

December 14, 2010

The Australian Wool Production Forecasting Committee today released its latest forecast for the
2010/11 season at 335 mkg greasy, making a small downward revision of its previous forecast. 

Committee Chairman Russell Pattinson said that “the small reduction is due largely to
worsening seasonal conditions in Western Australia resulting in lower fleece weights. There has
also been a  substantial turn-off of sheep from that state, including significant numbers
being transported to the eastern states.  It is estimated that up to one million sheep (mostly
“off-shears”) have been transferred from Western Australia to the eastern states in the 2010
calendar year.”

“The latest forecast is 5 mkg greasy lower than the Committee’s estimate of 340 mkg for the
2010/11 clip in August and is a decline of 2.3 per cent on the 2009/10 shorn wool production level.
The number of sheep shorn in 2010/11 is forecast to be 72.4 million head, 900,000 head fewer than
the forecast four months ago
(See Table 1).”

Despite the further downward revision, the forecast is seen as consistent with a slowing in
the decline in wool production in Australia.

“Not only is wool production tending to stabilise nationally, but producer intent to retain
or increase sheep numbers is apparent from the October producer survey. There are, however,
dramatic differences between States as a result of the varied seasonal conditions across
Australia.”

“Excellent seasonal conditions in New South Wales, Victoria, South Australia and Tasmania are
offsetting the impact of continuing dry seasonal conditions in Western Australia.” In arriving at
its latest forecast the Committee noted the strong year-on-year decline in sheep slaughter and live
export figures in all States except Western Australia.

“This has reinforced the view from State Committees that producers are very keen to retain
older ewes and ewe lambs for breeding purposes, however, the positive impact of these decisions on
wool production is not expected until 2011/12 and beyond.”

The Committee has also forecast a change in the micron profile of the Australian wool clip
with a reduction in the production of superfine and ultra-fine wool (18.5 microns and finer)
together with an increase in broader merino and non-merino wools.  The average fibre diameter
of the Australian wool clip is now forecast to increase by 0.2 microns to 21.4 microns this season,
given the excellent seasonal conditions in south-eastern Australia and the changing structure of
the national flock.

The December 2010 Australian Wool Production Forecast Report involves increased data sharing
between Meat and Livestock Australia and Australian Wool Innovation as part of a new
streamlined  forecasting model.  It also draws on advice and data from the AWTA Ltd,
ABARE, AWEX and ABS, together with the significant input from producers, wool buyers and brokers,
and State agency staff through AWPFC State Forecasting Committees.

Posted December 14, 2010

Source: Australian Wool Innovation