As mentioned last week, the Rupp Report’s intention has been to inform

Textile World
readers about the upswing of the textile industry in general and the textile machinery
sector in particular. This week,

TW
can start with some good news. The only odd thing for all the manufacturers who will be
covered is certain short supply caused by a strong downturn among the subcontractors. The first
stop is Belgium.

At Belgium-based Picanol N.V., Marketing Manager Erwin Devloo mentioned a general upswing and
that the weaving machinery supplier is already recording “an above-average order income” than
before the global financial crisis.

Improved Market Situation

Devloo confirmed that the economical situation for Picanol is far better than at the same
time last year. The only financial concern is that the exchange rate of the U.S. dollar compared to
the euro is unfavorable for both sides. And just like the cotton, it is not only the value of the
currencies, but also the volatility of the financial situation that makes the markets irregular and
shaky.

However, there is more good news than bad news: It was obvious to ask the question about the
upcoming regions where Picanol is having stronger sales. In general, the whole world is showing
increased interest and order activities. On top of the list is Asia, particularly China and —
surprisingly — India. In spite of all the millions of handlooms in India, Devloo said Indian mills
are heavily investing in modern weaving machines and that Picanol is enjoying close to 100-percent
market share. The reason for these Indian investments in weaving machines is that the Indian mills
are becoming more and more involved in garment manufacturing, and therefore need a lot of quality
fabrics and, consequently, up-to-date production equipment.



ITMA In Focus

The rhythm of three ITMAs three years in a row — Asia-Europe-Asia -— is an ongoing big issue
within the textile industry and, in particular, for the machinery manufacturers. To have a clearer
picture about the next ITMA shows, Devloo mentioned that the industry has to wait for the results
of ITMA Europe next year in Barcelona, Spain. The important question for him is whether the Chinese
visitors will be coming to Europe. Nevertheless, Picanol’s booth size will be about the same as it
was in Munich, Germany, in 2007.

Is Devloo expecting very much from the forthcoming ITMA 2011 in Barcelona? “Oh yes, I’m
expecting a lot,” he says. “There are many advantages to running an exhibition in Barcelona: First
of all, it’s a beautiful city, the infrastructure is good, the exhibition center is very modern and
up-do-date and there is an easy access to Barcelona, and the flight connections are not too
expensive.”

So will ITMA Europe survive in the long run? “I am sure,” Devloo says, “as long as there are
European textile machinery manufacturers.” Let’s see.



November 23, 2010

NEW YORK CITY — November 17, 2010 — Capital Business Credit LLC (CBC), a commercial finance
company specializing in providing supply chain financing and customer credit risk management
solutions, announced the formation of a new division, CBC Trade Finance, headquartered in New York
with offices in Hong Kong and Shanghai, China.

CBC Trade Finance will provide trade finance solutions to enhance and expand the trading
relationship between U.S.-based importers and Asia-based exporters. According to The United States
Trade Representative, the U.S. imported nearly $300 billion worth of goods from China in 2009
alone. Through CBC Trade Finance’s Supplier Early Payment (SEP) Program, the company will provide
up to 120 days of open account terms to U.S.-based importers, while paying Asia-based manufacturers
100 percent of their receivables, without recourse, upon shipment of goods. CBC Trade Finance is
independent and is not affiliated with any U.S. commercial bank.

In the U.S., CBC’s CEO Andrew Tananbaum will lead the division and Patrick Ho, CBC’s
executive vice president and regional manager, Asia, will oversee CBC Trade Finance in Asia. All of
CBC’s offices will offer the SEP Program.

Over the past 15 to 20 years, as China has become the U.S.’s largest trading partner, there
have been significant systemic changes in the apparel, furniture and soft good manufacturing
landscape. Where once there were thousands of manufacturers and hundreds of importers, today,
consolidation has shrunk the market dramatically and created credit risk issues for both buyers and
suppliers.

“CBC Trade Finance allows for a more efficient and profitable exchange of goods. Our SEP
Program will enable manufacturers in Asia to mitigate risk by receiving 100 percent payment upon
shipment; and we will provide importers with the ability to secure open account terms for up to 120
days. In short, suppliers will get paid faster and importers will be able to pay for their goods
later in the process,” said Andrew Tananbaum.

Patrick Ho stated, “In some cases, importers will receive their goods and provide them to
their retail customers even before payment is due to the manufacturer – which is truly unique in
the industry – allowing shelves to be stocked in an expedited fashion, enabling consumers to buy
goods quicker. Effectively we are providing the capital lubrication to the international trade
finance process.”

For more than 20 years, CBC has provided companies with access to credit and working capital
asset management solutions that include: factoring, customer credit protection, accounts receivable
financing and asset based lending, to help them manage supply chain-related finance issues. The
Company has a long and successful track record of working with hundreds of importers from start-ups
to established, public companies, across a wide range of industries, helping them grow by providing
quick and reliable access to working capital as well as hands-on assistance in managing customer
credit risk.

Tananbaum concluded, “CBC has decades of international trade experience and recognizes the
paradigm shift that has taken place over the last decade as importers and exporters moved away from
using letters of credit to using open accounts. As such, we created our SEP Program. Because of the
complexities involved with open account trading, a need exists in the marketplace for an offering
that helps the exporter/manufacturer mitigate risk, provides efficient transaction processing and
protects the receivables and inventories they finance. By creating CBC Trade Finance, U.S.
importers and Asia manufacturers/exporters now have the ability to access financial credit
facilities for the entire post shipment supply chain.”

Posted on November 23, 2010

Source: Capital Business Credit LLC

COLOGNE, Germany — November 11, 2010 — After a two-day fair, the first IMB Select closed its
doors on Wednesday with good results. The new trade show format, developed in collaboration with
the industry, provided the ideal conditions for the presentation and discussion of new developments
and advancements in process control and data exchange along the textile value chain. “We’re very
satisfied with the response. We would be delighted if Koelnmesse continues to pursue this concept.
This could be the starting signal for a very successful series of IMB fairs in future,” said one
major exhibitor, summing up the good mood that pervaded the hall. “All things considered, the
event’s new approach proved convincing. The results and experiences from the IMB Select 2010 give
us every reason to be optimistic about 2012,” said Gerald Böse, CEO of Koelnmesse. “The combination
of the IMB Select with its high degree of specialisation in information and communications
technology and the IMB – World of Textile Processing here in Cologne represents an international
platform for the global garment industry and textile supply chain that is unique the world over,”
added Böse.

Virtually all the exhibitors were equally impressed by the high quality of the IMB Select
visitors. “Lots of contacts – international ones too,” was the general tenor amongst the exhibiting
companies. In total, 568 trade visitors from 21countries informed themselves about the product
portfolios of the 53 exhibiting companies from 8 countries. Both garment manufacturers like
S.Oliver, Esprit,Hugo Boss, Puma, Wolford, Brax, van Laack and Marc O’Polo – to name just afew –
and retailers like Galeria Kaufhof and Sinn Leffers journeyed to the IMB Select in Cologne. The
exhibitors were particularly satisfied with the quality and decision-making authority of the
visitors.

The IMB Select 2010 encouraged direct dialogue between users and providers within the sector
in ideal fashion. The trade fair’s interdisciplinary approach was also reflected in the first-rate
congress programme. Under the motto “Heading for the future: enhancing global collaboration”, the
agenda covered the entire spectrum, from sourcing to retail and from order placement back to
procurement. On both days of the event, lecture blocks alternated with Speakers Corner
presentations, culminating in Future Talk, the concluding highlight of the fair, on the afternoon
of the second day. Entitled “Dialogue Marketing and CRM: gather, evaluate and entice”, the Future
Talk brought the extremely well attended congress programme to a fitting close.

The IMB 2012 will take place in Cologne from 8 to 11 May.

For further information go to:
www.imb.de.

Posted on November 23, 2010

Source: Koelnmesse GmbH

Textile organizations in the United States, European Union, Mexico and Turkey have sent a joint
letter to their respective governments urging immediate action to halt cotton trade restrictions by
the government of India. The organizations include the National Council of Textile Organizations
(NCTO), European Federation of Cotton and Allied Textiles Industries (Eurocoton), Cámara Nacional
de la Industria Textil (CANAINTEX), Istanbul Textile and Apparel Exporter Associations (ITKIB) and
Turkish Textile Employers Association (TTEA).

Together, the organizations represent more than 1 million textile workers, whose jobs could
be threatened by what the groups contend are discriminatory and illegal actions by India — the
world’s second-largest cotton exporter — to restrict or ban cotton exports in an effort to protect
its domestic textile industry. The groups note that the actions, imposed in April 2010, caused
global cotton prices to more than double by late October, while India has guaranteed low prices for
cotton consumed by its own textile mills. They further note that resulting price inequities are
skewing competition in favor of not only Indian textile and apparel producers – which are able to
offer their products at subsidized prices — but also Chinese state-owned textile mills — which are
purchasing the remaining global supply at the high prices demanded while also enjoying government
subsidies that allow  “enormous price flexibility.”

The letter states: “If the current scenario of India curtailing and delaying export of its
cotton crop continues to play out, European, Mexican, U.S. and Turkish textile mills will face the
prospect of prolonged high prices for cotton or having no supply of cotton at all. Either way, our
mills cannot survive such a scenario for an extended period of time.” It further asks “that our
governments immediately send the strongest message to India that it must not restrict or delay
export of its cotton to world markets and must abide by international trade rules.”

November/December 2010