Hanesbrands To Acquire Gear For Sports

Winston-Salem, N.C.-based apparel manufacturer Hanesbrands Inc. has agreed to acquire Lenexa,
Kan.-based GearCo. Inc., also known as Gear For Sports — a seller of embellished licensed logo
apparel to college bookstores under several brand names including Hanesbrands’ Champion label —
for $55 million. The purchase is expected to be completed in the fourth quarter of 2010.

“This acquisition will create great value and immediately add to our growth momentum,” said
Richard A. Noll, chairman and CEO, Hanesbrands. “We have significant growth synergies in both the
collegiate bookstore channel and our existing retail channels and can take advantage of our
low-cost global supply chain. This acquisition is an excellent way to leverage the growth platform
we have just built and create value for our shareholders.”

The acquisition is part of Hanesbrands’ strategy to create stronger branded businesses in its
Outerwear Segment. Following its purchase of Gear For Sports, 20 to 25 percent of the company’s
Outerwear Segment sales will be graphic apparel.

“Gear For Sports is a graphic apparel powerhouse with a phenomenal team,” said William J.
Nitakis, president and COO, Hanesbrands. “Together we have tremendous opportunities to expand,
drive growth and take market share.”

Gear For Sports’ senior management will continue to run the company, and the administrative,
operational, production and sales structure will remain the same, with the business continuing to
operate out of its Lenexa office.

August 17, 2010

Haiti Apparel Center Opens To Train Workers For Country’s Garment Industry

The Haiti Apparel Center (HAC) officially opened last week in the SONAPI industrial park in
Port-au-Prince, Haiti, to provide professional training for workers in the country’s garment
industry. The center, funded by the U.S. Agency for International Development (USAID), is located
in a 6,000-square-meter facility made available by the Government of Haiti and refurbished and
operated by Silver Spring, Md.-based international development organization CHF International, and
has implemented a six-week training program developed by Cary, N.C.-based Textile/Clothing
Technology Corp. ([TC]
2).

HAC will train more than 2,000 workers annually for positions ranging from sewing machine
operators to mechanics to quality-control supervisors, providing skilled workers to an industry
that had been shrinking even prior to the January 2010 earthquake that devastated the country. In
addition, senior managers, factory owners and business leaders may attend executive seminars
offered by the center. According to [TC]
2, the professional training program was initiated in the summer of 2009 for the
training of sewing machine operators. USAID reports that more than 50 operators and 13 operator
trainers have completed the program to date.

According to USAID, the center will help Haiti take full advantage of the Haitian Economic
Lift Program (HELP) Act, under which the country’s exports, including apparel, have expanded access
to U.S. markets. HELP also provides support for the rebuilding of Haiti’s apparel industry —
including building renovations, machinery replacement and professional training — which will cost
an estimated $38 million, according to a Congressional Research Service report.

“The apparel center promotes economic recovery and long-term growth and helps Haiti tap into
the tremendous potential of the garment industry,” said Paul Weisenfeld, coordinator of USAID’s
Haiti Task Team. “It will provide opportunities to improve the lives of thousands by increasing job
skills and enabling Haitians to earn more. In the last 30 years, the number of skilled garment
workers in Haiti has dramatically declined, but we hope to reverse that trend.”

August 17, 2010

Naturally Advanced Technologies Subleases Kingstree Facility For Flax Fiber Scale-Up

Portland, Ore.- and Vancouver, B.C., Canada-based Naturally Advanced Technologies Inc. (NAT) — a
developer of technology to process bast fibers including industrial hemp for use in a range of
applications — has signed a 10-month sublease of a Kingstree, S.C., facility that it will use as a
pilot scale-up flax fiber facility to perform decortication of CRAiLAR® Organic Fibers. The
40,000-square-foot facility — originally set up to process flax fiber under a U.S. Department of
Agriculture initiative — is located near 300 acres of land dedicated to fiber-flax cultivation,
where NAT will conduct fiber-flax-growing trials starting in October.

“Having a facility in the USA that we operate and manage for the dry process or decortication
of our Crailar Organic Fibers brings the entire patented Crailar process together under NAT
control, enabling us to manage our process entirely,” said Ken Barker, CEO, NAT. “As well, the
opportunity to conduct full scale flax trials furthers our vision of utilizing a variety of bast
fibers as the foundation for Crailar and its multiple principal uses.”

August 17, 2010

New ASTM Textiles Standard Provides Comprehensive Guide To Fibers

WEST CONSHOHOCKEN, PA — August 2010 — After completing an update of ASTM D123, Terminology
Relating to Textiles, members of ASTM Subcommittee D13.92 on Terminology decided that the
information contained in the annexes was sufficiently important to merit being in a separate
standard. The new standard, ASTM D7641, Guide for Textile Fibers, has now been published, and it
provides a comprehensive guide to a large variety of fibers used to manufacture many textile
products. Subcommittee D13.92 on Terminology is under the jurisdiction of ASTM International
Committee D13 on Textiles.

“ASTM D7641 is intended to be a useful resource for designers, buyers, test laboratories,
educators, students and regulators,” says Vincent Diaz, Atlantic Thread and Supply Co., and a D13
member. Diaz notes the following information is typical of what can be found in ASTM D7641:

–  Bear grass is a hard leaf fiber grown in the southwest United States and Mexico.

–  Pineapple fiber is a fine leaf fiber grown in the Philippines.

–  Fox hair can be used to make soft brushes.

–  PLA is a manufactured fiber that is derived from naturally occurring sugars.

“This new standard is a valuable reference that can help readers improve their understanding
about the relationship between commercial names, fiber identification and the geographical regions
of fiber origins,” says Diaz.

To purchase ASTM standards, visit
www.astm.org and search by the standard designation number, or
contact ASTM Customer Relations (phone: 610-832-9585;
service@astm.org).  ASTM International welcomes and
encourages participation in the development of its standards. For more information on becoming an
ASTM member, visit
www.astm.org/JOIN.

Posted on August 17, 2010

Press Release Courtesy of ASTM International

TMC Goes The Extra Mile

NEW SOUTH Wales, Australia — August 13, 2010 — The unique Sheep to Shelf ® (S2S) traceability
programme offered by The Merino Company (TMC) since 2006, provides complete transparency and
traceability and guarantees the integrity of the fibre throughout the entire supply chain.

Working directly with its Wool Pool Participants, and closely monitoring and managing each
step in the supply chain, TMC provides its global customers with fully certified, transparent and
traceable, quality merino yarn, fabric or garment solutions from Sheep to Shelf ® – traceable right
back to the very farms where the fibre is grown.

Phoebe Croyle, Marketing Manager of TMC said “Whether our customers require certified ceased
or non-mulesed wool, EU Eco-label compliant wool, wool that has been produced on a property which
has implemented a Farm Management Plan or Environmental Management System, or something different
altogether, we can provide complete traceability and certification for each movement of the wool;
from the fibre source, through each manufacturing step, right through to the finished product”.

“Our commitment to maintaining integrity throughout the supply chain, provides our customers
with quality assurance, and provides reassurance to our wool growers that their efforts to
differentiate their wool are recognised and valued right to the end consumer. Such high levels of
transparency and traceability are only possible through the TMC Pools system and our unique
relationships with our wool growers”, continued Ms Croyle.

Details of TMC’s wool growers are recorded, together with their on-farm practices,
certifications, and any additional information required about their properties. TMC then works with
quality driven supply chain partners across the globe including topmakers, spinners, and fabric and
garment manufacturers to provide customers with differentiated natural fibre, textile and apparel
solutions from Sheep to Shelf. Each supply chain partner provides complete transparency and the
necessary certifications which are input into the TMC traceability process.

Taking traceability one step further, TMC can also provide customers with customised web
based traceability programmes, tracing products from Sheep to Shelf. Depending on a customer’s
needs, TMC can engineer a programme designed to their style and specification and once complete,
the programme is then integrated into their website.

One of TMC’s first customers to adopt the Sheep to Shelf® traceability programme was INSTYLE,
a leading Sydney interiors textile designer and manufacturer.

Tracy Mak, INSTYLE’s Environmental Manager, said “INSTYLE works closely with TMC, who manage
the early stages of our supply chain. TMC ensure that our EthEco® wool comes from
holistically-managed farms that have ceased mulesing and that the fibre, yarn and final products
meet our LIFE Textiles® specifications. Working with TMC provides assurance for us, as the whole
system is traceable, and also provides our customer’s assurance through our ‘FARM TO FABRIC’ web
based traceability programme”.

Posted on August 17, 2010

Press Release Courtesy of The Merino Company

Little Near-Term Import Relief


I
t’s now been nearly two months since China announced its new yuan policy — one that
promised some gradual upward currency revision. But so far, there’s little to suggest it will make
for any big difference in incoming textile and apparel shipments from that nation — certainly not
over the next few quarters. For one, the upward revaluation since the announcement in June has been
negligible. And judging from latest Beijing standards, any changes will continue to be quite small.
True, some American officials are still talking in terms of a 5-percent-or-so rise in yuan value
over the next few quarters. But this seems like wishful thinking, with most analysts seeing a much
more modest near-term advance — not nearly sufficient to even start leveling the international
playing field. Indeed, if there’s any doubt about how the huge still-existing yuan-dollar imbalance
is continuing to spark imports, take a look at recent trade trends. Thus, despite only a very small
pickup in U.S. domestic demand so far this year, U.S. year-to-date textile and apparel imports from
China have jumped a hefty 22.5 percent. Result: With this new advance, China now accounts for some
40 percent of all U.S. textile and apparel imports. Also on the disturbing side: Imports from all
other overseas suppliers have also been increasing — with year-to-date incoming shipments up by 10
percent. To be sure, that’s small than the Chinese gain, but again, hardly anything to cheer about.

textilepriceindexes810


Imports Beyond 2010


On a rosier note, however, this new import surge should slow down over the longer pull. For
one, the anticipated creep-up in Beijing’s yuan — while far under the 25- to 40-percent
appreciation most analysts feel is needed to correct the current imbalance — will over time add up
to a meaningful number. Note, for example, that a similar Chinese currency policy from 2005 to 2008
resulted in a sizeable 21-percent gain in the yuan vis-à-vis the dollar. There are also other
factors at work that might slow down our demand for Chinese products — the most notable of which
is that nation’s accelerating increase in wage rates. Pay levels there are already running anywhere
from 5 to 15 percent above beginning-of-year levels. Zero in on the coastal province of Guangdong,
a hub for apparel manufacturing, and wage gains are now near 20 percent. Further add in rising
costs of raw materials, transportation and pollution control — and Chinese apparel tags may rise
as much as 5- to 10-percent over the next 12 months. That should be enough to make U.S. companies
take another look at their overall sourcing strategies. But don’t expect any miracles — certainly
nothing that would result in any actual import shrinkage. That’s because rather than shifting back
to domestic production, virtually all major American firms are now considering shifting some of
their sourcing to other low-cost suppliers like Vietnam, Indonesia, Pakistan, India and Bangladesh.
The CFO of one of the nation’s largest retailers sums it up, noting that his company is already
busy working with its top 15 suppliers to find cheaper foreign sources. Other firms tell pretty
much the same story — suggesting some major changes in industry sourcing over the next few years
are virtually inevitable.


Gauging The Macro Impact


The strength of underlying domestic demand is another problem that industry executives
continue to wrestle with these days. The basic unknowns: How fast will the economy grow, and how
will it all impact textile and apparel activity? As of now, the prognosis is basically positive.
Newly revised International Monetary Fund forecasts, for example, now see the U.S. economy
advancing 3.3 percent this year — actually a bit faster than its earlier 2.7-percent projection.
And while some leveling off to 2.9 percent is anticipated for next year, that, too, would still be
a respectable gain. Several factors are behind this cautious optimism. They include:
higher-than-a-year-ago household net worth; falling consumer debt — the amount owed by average
credit card holders is now running 10-percent under a year ago; the modest amount of government
economic stimulus still in the pipeline; strong growth in Asia — something that could help bolster
our exports; and the huge amount of cash in corporate coffers — money that could stimulate
additional business spending. All the above would seem to guarantee at least a 3-percent rise in
real consumer spending this year. More important, retail apparel sales seem to be doing even better
than that. Latest monthly totals, for example, are running close to 6 percent ahead of a year ago.

August 2010

Demand Strong, Capacity Available


T
he momentum that is carrying many yarn spinners forward to what could be their best year
in recent memory continued through the first two weeks of August. Spinners from multiple sectors
report strong orders and are cautiously optimistic that business will remain good through the rest
of the year.

However, the pressure on capacity that was so much of an issue a few months ago seems to be
easing somewhat. “It seems that most of the panic buying is over,” said one spinner. “This
desperate attempt to refill pipelines that had gotten so empty seems to be over. Everybody rushed
in to restock their shelves earlier in the year, and that put a lot of pressure on being able to
fill orders on time. We’re still running strong, but we have room for new orders.”

An executive from a major Carolinas spinner agreed: “Our business continues to run at a
level that we’re satisfied with. A few months ago, we couldn’t take any new orders. Now, we have
some capacity available, but not anything to be overly concerned about. The biggest thing going
forward is that the depth of the business is not as much as I would like it to be, but we’ve been
living with those kinds of issues for a couple of years now. There are few times that we see
long-term contracts.”

Depth is an issue for other spinners, as well. “We have some business in-house that goes out
a few months,” said a specialty spinner, “but most of our orders are short, and our customers still
expect quick turnaround.”

Depth of business is impacted by the high rate of unemployment in the United States, one
spinner noted. Retailers are understandably hesitant to overstock in light of uncertain future
purchasing power. “You have to be concerned with the high rate of unemployment in this country and,
especially, those who have given up looking for jobs,” he said. “They don’t have jobs, their
benefits are running out, and they don’t have credit availability. At some point, these folks are
going to just quit buying at retail. We are certainly concerned about how this will impact business
down the road.”

Orders for natural yarns seem to be strongest at the moment, said one Southeastern spinner,
while demand for package-dyed yarns is still relatively weak. “I’ve talked with a number of other
package dyers over the past few weeks, and they all say they have excess capacity,” he said.


Pricing, Credit, Materials Still An Issue


Even with the relative lack of spinning capacity, customers are still putting pressure on
spinners to hold the line on yarn prices. “Despite the increases in prices from China as a result
of higher-cost labor, fiber increases and the overall cost of doing business in the Far East, we
still see retailers just fight, fight, fight for cheap prices,” said one spinner.

Another spinner said: “We’re still finding credit availability to be an issue for some of
our customers. It’s hard to borrow money if you are not golden. Banks have not substantially
loosened their requirements, despite the appearance of an economic recovery. Going forward, this
could be an issue that has tremendous impact on business.”

“The cost of raw materials continues to be an issue,” noted one spinner, “although we’ve
seen some slight decreases in the past several weeks. But, with the pressure from our customers to
maintain prices, material cost has the potential to have a big impact on the bottom line.

“Overall, though, we’re doing well,” he continued.  “I believe the opportunity is there
for spinners in this country — those of us that are left — to do okay going forward.”

August 2010

August 2010

Sweden-based
Atlas Copco AG‘s Oil-free Air Division has published a technical white paper,
available at
www.efficiencyblowers.com, explaining the
differences between screw technology and traditional Roots type lobe technology.

Brentwood, Tenn.-based
OHL, a supplier of logistics solutions to industries including apparel and retail,
has signed a membership agreement with
CargoNet, a cargo theft solutions provider.

Neenah, Wisc.-based
Appleton Mfg. Division now offers performance tuning and maintenance checkups for
its core cutting equipment.

Outlast Technologies Inc., Boulder, Colo., has added an interactive,
multi-lingual, comprehensive training program on its website,
www.outlast.com, to educate manufacturers and retailers about
Outlast® technology.

ASTM International, West Conshohocken, Pa., has revised the ASTM E2149, Test
Method for Determining the Antimicrobial Activity of Immobilized Antimicrobial Agents Under Dynamic
Contact Conditions.

Pantone LLC, Carlstadt, N.J., has launched TONES,
www.pantone.com/tones, a free quarterly e-newsletter
highlighting the latest color and trend information in design, fashion and furnishings as well as
influences in art, culture and nature.

Designtex, New York City, has converted its entire upholstery collection sampling
from fabric to a 100-percent digital format.

The
Théophile Legrand Foundation – Institut de France is accepting applications for
the Théophile Legrand International Award for Textile Innovation, which honors textile innovation,
research and creativity. The international competition is open to all researchers, and doctoral or
master of science students, who may submit applications in French or English by Sept. 10, 2010 to
theophile-legrand@hotmail.fr.

Dalton, Ga.-based
Shaw Industries Group Inc.‘s Shaw Floors business has launched Shaw Web Studio, a
suite of web products for flooring retailers. The Shaw Contract Group business has received the
Best of NeoCon Silver and Best of NeoCon People’s Choice Gold design awards for its 18×36
rectangular modular carpet collection.

Ahlstrom Corp., Finland, has implemented a global price increase on all of its
wiping fabrics.

Messe Frankfurt GmbH, Frankfurt, has been accepted into the United Nations Global
Compact initiative, a network comprising companies committed to sustainability.

Bethesda, Md.-based
Lockheed Martin‘s wholly owned subsidiary
Savi Technology has relocated its headquarters from Mountain View, Calif., to
Alexandria, Va.

Fort Smith, Ark.-based
Baldor Electric Co. now offers an 18-page brochure detailing Baldor’s
energy-saving products. A free copy is available at
www.baldor.com/support/literature_request.asp.

energybrochure
Baldor’s energy-saving products brochure

The
Hohenstein Institute, Germany, has established a contact office in Minsk, Belarus,
located at Prityckogo Str. 112-70, 220017; 375-33-664-15-97;
belarus@hohenstein.org.

Erie, Pa.-based
Eriez Manufacturing Co.‘s Eriez® 5-Star Service Group has opened a Service Center
near the company’s headquarters. The Center has machining, fabricating and welding capabilities to
repair or re-manufacture equipment, as well as service technicians who can perform on-site audits,
repairs, equipment checks and in-plant certifications.

eriez
Eriez’s 5-Star Service Center in Erie, Pa.

R.G. Barry Corp., Pickerington, Ohio, has given an exclusive license for its
Dearfoams® brands for sleepwear and apparel to Mira Loma, Calif.-based
Olivet International.

Agoura Hills, Calif.-based
Buxbaum Group has relocated its headquarters to 28632 Roadside Dr., Suite 200. The
main telephone number remains the same.

Jackson, N.J.-based
Newson Gale Inc. has released a white paper titled “The Critical Role of Clamps
& Cables in Static Electricity Control.”

Glen Raven, N.C.-based
Glen Raven Inc.‘s Dickson Coatings division’s EverGreen fabrics have been
certified to the International Organization for Standardization’s 14040 to 14044 standards.

Rock Hill, S.C.-based
Atlas Copco Compressors LLC has released the seventh edition of the “Compressed
Air Manual.” Free copies are available at
www.atlascopco.us/usus/Aboutus/sales/compressors_generators/Comp_manual.asp.

atlascopco
Atlas Copco Compressors’ Compressed Air Manual

High Point, N.C.-based
Allied International Inc. has launched a full e-commerce website at
www.alliedi.com.

alliedweb
Allied International’s new e-commerce website

The
Association of the Nonwoven Fabrics Industry (INDA), Cary, N.C., is accepting
nominations through September 1 for the 2011 Visionary Award, to be presented at the Vision 2011
Consumer Products Conference in San Diego in January. To nominate a product, e-mail a product
explanation to Visionary Awards Coordinator Michael Jacobsen at
mjacobsen@inda.org, or visit
www.inda.org.events/vision11/nominate.html
for an online submission form. For more information, contact 201-396-7005.

The Roseville, Minn.-based
Truck Cover & Tarp Association, a division of
Industrial Fabrics Association International, has been renamed the
Tarp Association.

The
Synthetic Yarn and Fiber Association (SYFA), Gastonia, N.C., has added a Standards
section to its website, located at
www.thesyfa.org.

Spain-based Valentin
Rius Clapers S.A. now offers YouTube videos of its machinery models via its
website,
www.rius-comatex.com.

New York City-based
FildiUSA’s Ecotec® recycled cotton-blend yarns have been certified to the
Netherlands-based Control Union Certifications’ Global Recycle Standard.

Aurora, Ill.-based
Aurora Specialty Textiles Group Inc. has launched a new website to present its
Northern Lights Printable Textiles™ line of printable fabrics and canvas. The website is located at
www.auroranorthernlights.com.

Germany-based
Messe Frankfurt Exhibition GmbH is accepting nominations for the Young Contract
Creations Award: Upholstery, to be presented at Heimtextil, the International Trade Fair for Home
and Contract Textiles to be held in Frankfurt Jan. 12-15, 2011. Applications may be submitted at
www.heimtextil.messefrankfurt.com by October
17.

DyStar Textilfarben GmbH, Germany, has opened a Color Solutions International
Studio at its facilities in Rabale, Navi Mumbai, India.

Harrisonburg, Va.-based
AirDye Solutions/Colorep Inc. has launched a new website, located at
www.AirDyeSolutions.com.

Ashland, Ore.-based
Massif Mountain Gear Co. has selected Bozeman, Mont.-based
TEXbase‘s material-lifecycle-management software.

Houston-based
Solvay Chemicals Inc. has increased off-list prices for all commodity grades of
hydrogen peroxide by 4 cents per pound in the United States and 93 cents per metric ton in Canada.

Customs Reform Legislation Introduced In The Senate

Legislation giving U.S. Customs and Border Protection expanded authority and funding to combat
textile import fraud has been introduced in the Senate. It is a companion measure to the Textile
Enforcement and Security Act that is pending in the House with 25 co-sponsors.

As the bill was introduced by Sens. Kay Hagan, D-N.C., and Lindsey Graham, R-S.C., David
Hastings, chairman of the National Council of Textile Organizations, said the measure “will send a
clear message that the U.S. government will not allow fraudulent activity on imported textile and
apparel goods to continue.”

The House and Senate bills include provisions that would establish an electronic verification
system for textile and apparel imports; allow the Department of Homeland Security to use fines and
penalties to help pay for investigations and training, increase the staff at high-volume ports for
textiles and apparel, and establish a program to ensure that resident agents are held accountable
for products imported under their name.

U.S. Customs and Border Protection currently collects more than $25 billion in duties
annually, and more than 42 percent of the duties are collected on textile and apparel imports. In
spite of this, textile manufacturers contend that many imports are entering this country
undervalued for customs purposes, and there continues to be a problem with illegal transshipments,
particularly through countries with which the United States has preferential trade agreements.

August 10, 2010

The Rupp Report: Meet The Needs Of Your Customer

The Rupp Report had the chance to talk to Paul Hulme, president of Huntsman Textile Effects,
Singapore. In a short period of time, Huntsman Textile Effects has become one of the global players
in textile dyestuffs and chemistry. Huntsman today has more than 11,000 employees and operates from
multiple locations worldwide. The company had 2009 revenues of approximately $8 billion.

Paul Hulme, an Englishman, is a chartered accountant with a business studies degree from the
University of Manchester in the United Kingdom. Prior to leading Huntsman Textile Effects, he was
president of Materials & Effects. Paul Hulme is a dedicated golfer and squash player. He and
his wife, Julie, have two daughters.

Growing Markets

The current market situation as seen by Hulme is that globally, the textiles market continues
to grow, which makes it a very interesting and exciting market for Huntsman. “Clearly, this growth
is driven from Asia, so since acquiring the Textile Effects business, we have worked hard to adapt
our structure in order to serve our markets and our customers better,” he said. “Of course, the
financial crisis affected demand in all markets, but there are clear signs that demand is
increasing again. Even before the crisis, there was ongoing consolidation within the dye and
chemical supply base. Large competitors struggled or even went bankrupt. We have taken some tough
measures to bring our business to where it is today, and now we are ready to take on the
opportunities the market presents.”

hulme
Hulme

Get Out Of The Crisis

“As a supplier to many key markets, all divisions of Huntsman Corp. were affected by the
crisis,” Hulme continued. “However, thanks to a strong balance sheet and adjusting quickly to the
market, we are now emerging stronger than before. As an integral part of the corporation, Textile
Effects plays its part in making Huntsman a successful corporation. The textiles market is very
interesting for us due to the growth rate expected in the coming years. Our strategic business
units of Apparel and Home Textiles (AHT) and Specialty Textiles (ST) are aligned to our selected
markets to respond to challenges arising from the ongoing market development.”

He went on to say: “As we have a global manufacturing footprint, our aim is to utilize our
strengths to meet customer needs and better serve our selected markets. Sophisticated synthesized
products are generally made in one location in order to optimize processing and guarantee quality
and, of course, safety standards. Less complex products may then be made in multiple locations to
be capable of increased flexibility but still to the same global standards of quality and safety.”



Information Exchange


“Listening to the customer’s needs is central to our strategy, and drives not only the supply
and distribution activities, but, possibly more importantly, our innovation focus,” Hulme said.
“Our aim is to be quick, flexible and responsive to the dynamic market that our customers are
facing, which should form the basis for a long-lasting business relationship. Leaving the economic
turmoil of the past 18 months, being close to our customers is more important than ever before.
Globally, we have already conducted customer events in our key markets this year to inform them
about our innovations and, of course, listen to their concerns.”

Research And Development

According to Hulme, innovation is a strong tradition of the Textile Effects business and is a
key element in Huntsman’s strategy. The company holds approximately 1,100 patents and introduced
more than 30 new products to the market last year. This year, Hulme said, Huntsman will exceed that
number.

“The key priority is focusing on what the market needs whilst anticipating future trends,” he
said. “For example, there is a huge focus in the textile industry today on sustainability in terms
of reducing environmental impact. We are very well-placed to meet this requirement, but, of course,
the work started some years ago, and our research and technology teams are already working on the
next generation of products to meet tomorrow’s needs.”

New Products In The Pipeline

This year, Huntsman will launch more than 30 new products. Hulme says the focus in 2010 is to
help the textile industry meet the increasing demand for products and processes with lower
environmental impact. “We have some developments particularly in the areas of stain management to
keep apparel cleaner for longer and reduce the need for laundering and reactive dyes for cotton to
help reduce the amount of water and energy during processing,” he explained.

Market Position

Asked abut Huntsman Textile Effects’ position in the markets, Hulme said: “We are well-placed
to take advantage of the current focus on sustainability, and we have some very exciting
developments over the coming months that will allow a quantum leap in processing of cotton. We are
pleased with our achievements, but, of course, have clear targets [regarding] how we want to grow
our business. Our customers expect innovative solutions to the market demands. To deliver these, we
need to have the capability to develop the required products and processes. As mentioned above, we
have around 1,100 patents and launch many new products each year. However, we go further by
supporting our customers within their own operations to optimize the ways in which our products are
used, which we do via our regional technical resource teams.”

Outlook

 “It is clear that the world’s focus is very heavily on environmental matters, which is
definitely a big change from 10 years ago,” Hulme said. “This helps a company like Huntsman, as
many of our investments in technology over recent years have been geared towards delivering
sustainable products and processes. Some trends will clearly continue, such as the growth in
manufacturing in Asia and the focus on sustainability. Pressure will remain on costs, and lead
times will continue to shorten, meaning the success of supply chain systems will be critical. There
is likely to be ongoing consolidation and more cooperation and even joint ventures with people
sharing technologies across different end markets.”

Hulme is convinced that the image of Huntsman in the textile world is very positive. “I
believe that partners and customers can trust in Huntsman as their sustainable partner in our
selected markets,” he explained. “The feedback from our customers is positive when it comes to
innovation, quality and technical service. We will continue to strengthen these areas whilst also
working on areas where we need to improve. We are pleased with our achievements, but we have to
constantly review our position and adjust to the needs of the markets.”

To keep its market position, Hulme says it is essential for Huntsman to “keep innovating to
meet the needs of our customers.”



August 10, 2010

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