Zoltek De Mexico Starts Up

St. Louis-based carbon fiber manufacturer Zoltek Cos. Inc. has begun manufacturing operations at
its Zoltek de Mexico facility in Guadalajara. Zoltek acquired the textile acrylic plant in October
2007, modified it to produce acrylic precursor for use in carbon fiber production and installed
four continuous carbonization lines.

“The Mexico plant now enables us to meet anticipated major increases in demand in the wind
energy and other large emerging commercial applications,” said Zsolt Rumy, chairman and CEO,
Zoltek. “We have substantially increased our capacity to produce low-cost carbon fibers on a timely
and extremely cost-effective basis, and further extended our leadership in the growing commercial
advanced composite market.”

According to company estimates, the Guadalajara facility eventually could produce 60,000
metric tons of precursor material annually, supporting the production of more than 27,000 metric
tons of carbon fibers.

As part of its strategy to commercialize carbon fibers as a widely used building material,
Zoltek has expanded its management team, recentered its research and development programs, and
heightened its efforts to improve operations.

November/December 2008

Man-Made Fibers: New Attitude


M
an-made fibers are becoming more important than ever. Their share of world fiber
consumption today is more than 60 percent. The challenge and the opportunity for the man-made fiber
industry will be in the area of environmentally friendly products. This development is a matter
more of a new attitude than of technology. And the fiber industry is on the right track, especially
the European man-made fiber industry.

Every year, the man-made fiber industry summit, the Dornbirn Man-Made Fibers Congress, takes
place in Austria. The 47th congress, held in September 2008, closed with a record attendance of
more than 720 visitors from 40 countries. Main topics included new fiber developments, sportswear,
safety, technical textiles and nonwovens. However, the overarching subject was sustainability, with
the focus on cradle-to-grave products.

Not only is the global climate changing, but also the attitude of the man-made fiber
industry. It was remarkable to see that the industry worries about climate change, too, as was
reflected in many papers presented at the congress. However, the whole situation has become very
emotional, because climate change directly and personally affects each and every one of us.

dornbirn
The 47th Dornbirn Man-Made Fibers Congress offered lectures covering a range of topics
including fiber developments and sustainability, among other topics, to more than 720 congress
attendees from 40 countries.


Rising Raw

Material Costs And Energy Prices

It’s obvious that raw material and energy prices and the consciousness related to climate
change are linked with one another. In a world of finite resources, an increasing number of people,
mainly in Asian countries, are striving to attain the same consumption level of the West, and the
gap between production and demand is increasing.

Over the last few years, the man-made fiber industry has enjoyed considerable global growth.
Today, the production ratio of natural to man-made fibers is about 35 percent to 65 percent, with
the share of man-made fibers growing.

The current need for raw materials on the part of the high-growth economies of China and
India is in contrast to a raw material supply industry that has been stagnating for decades. In the
past few months, just like in almost every other industry sector, problems have occurred
dramatically as energy prices and raw material costs have exploded. According to experts, the era
of relatively inexpensive natural resources is over. This situation will remain for many years, due
to the fact that the production of raw materials is a very capital-intensive and time-consuming
process. For example, the expansion in capacity of petroleum-based raw materials is nothing that
can be solved in a short time. For sure, speculative trading in raw materials has intensified this
effect. However, without this firm trend toward increasing demand, there would not be any
speculators.

The price of energy has become more volatile than ever in the last 12 months. In spite of
day-to-day fluctuations between $100 and $140 per barrel and back down to below $60, it is more
important to know that oil prices rose to these levels from the customary $10 to $20 a barrel.


The Carbon Footprint

Everybody is aware that energy costs have become a major item on the balance sheets of
companies, whatever sector of activity they may be involved in. This awareness has in recent months
become part and parcel of a new form of consumer awareness with respect to greenhouse gas
emissions, global warming, and the so-called carbon footprint. A number of retailers have now begun
to be more transparent as a result of consumer pressure, and are indicating, for example, whether
or not a food product offered for sale has been air-freighted into the country of consumption.

This transparency offers the consumer a choice. Other retailers are prepared to quote the
number of air miles flown per kilogram of product, in a kind of inside-out loyalty scheme. There
will inevitably come a time when this approach will also apply to apparel and other lighter-weight
products – which, as distance and weight are linked to increased air-freight costs, will begin to
shift back part of the production advantage toward the Western industrialized countries and their
peripheries. The same thing, too, will apply, mutatis mutandis, to maritime transport. In Europe,
for example, there is a growing opportunity for more efficient and just-in-time man-made-fiber
apparel and technical textiles production in and around the Mediterranean region as compared to the
Far East, with the added advantage that European yarns and fabrics are used as raw materials for
the final making-up processes. This opportunity also exists in the Western Hemisphere.

The unforeseen rise of the euro and the decline of the US dollar, which could not have been
predicted to the extent that they have occurred, cannot be laid at the door of European companies.
Soaring energy costs, the introduction of REACH – the Registration, Evaluation, Authorization and
Restriction of Chemical substances – and other burdens have been imposed upon European producers
and have not made their lives easier. Sustainability is one of the key issues in the production of
fibers and fabrics. The most important parameters for the future are:

•    fiber production;

•    yarn and fabric production;

•    dyeing, printing and finishing;

•    conversion to end product;

•    transportation

•    product use and maintenance; and

•    recycling, incineration or disposal.

Today, economic success, social acceptance and political stability are intimately linked to
the sustainable economic management of a company. However, governments also have a high level of
responsibility to create an overall framework enabling companies to pursue this approach. The
debate about climate change has led all big companies to reconsider their policies. Some years ago,
nobody could explain the term “carbon footprint.” Now, this expression has almost become
mainstream. Companies that refuse to deal with the issue of sustainable development are clearly at
a competitive disadvantage.

Europe cannot pass responsibility for sustainable economic development to others, experts
said in Dornbirn. Whoever violates the rules that the international community has imposed as a
basis for ensuring the preservation of a world worth living in should potentially be subject to
sanctions. For this reason, the Western industrialized countries should deal with the issue of
import duties on products that are not optimally produced when it comes to their carbon footprint.

This issue especially affects the fiber industry, which is particularly vulnerable. Europe
faces massive expenditures for environmental protection. But for companies outside of Europe, these
costs comprise a fraction of what is spent in Europe. This is a perverse distortion of the
situation: Factories that produce fibers but fail to sustainably and efficiently use natural
resources are rewarded with high margins, whereas plants that act in a more responsible manner are
being punished.

Page34


Trends

On the one hand, fiber producers are in the midst of a long-term, substantial growth in
demand for their products. On the other hand, everybody is forced to prudently and sustainably use
natural resources.

If one is to produce more but use fewer natural resources, one should make use of more
renewable raw materials. One example is cellulosic fibers. Wood from trees is the basic raw
material required for 90 percent of regenerated cellulosic production, and trees have a very low
impact on the environment and the fertility of the soil. Moreover, one is far from tapping the full
global potential for wood production. According to Austria-based Lenzing AG, the leading producer
of viscose fibers, only about 10 percent of the annual worldwide wood harvest, currently totaling
about 1.7 billion metric tons, is processed into pulp. Of this amount, only about 3 percent is
chemical pulp, which is used in the fiber industry and for other applications. In addition, 90
percent of the renewable land biomass is lignocellulose, which underlines the growth potential.


Product Life Cycle

Product life cycle is becoming more important than ever, and the understanding of the life
cycle of products with respect to greenhouse gas emissions has significantly improved. Assessing
the carbon footprint will become standard practice for all products in the same way that tenacity
is used to describe fiber strength. The fundamental understanding of the climatic impact of the
products is the prerequisite for optimizing production. Those companies that implement innovative
measures at an early stage will logically have a competitive edge.

In the upcoming decades, there will continue to be sufficient raw materials for the
polyester industry, but at higher prices. Polyester is the most important polymer for fiber and
will remain so in the future, especially if the recycling rate for polyester increases. It will
also be necessary to discover completely new raw materials for the man-made fiber industry.

However, these raw materials will only be able to gain a significant market share on a
long-term basis because they are hard to process in technological terms, or they compete with other
applications. Think of casein. Its use as a raw material for fiber production is considered to be
technically feasible, but it will involve fiber producers in a competition with the food industry.
The fact is that cellulose is one of the most widely used natural polymers, which are the easiest
to process, particularly in an ecologically sensible manner, based on the technologies available
today. Perhaps, some years from now, the cellulose required for the fiber industry will not only be
derived from wood, but also from quickly growing plants – such as sugar cane, grass and straw –
thus opening up new perspectives.

The market share of fibers produced by using renewable raw materials with a correspondingly
attractive energy/greenhouse-gas balance will certainly increase in the years to come, and those
fibers that are manufactured in line with sustainability criteria will be more enthusiastically
welcomed by consumers. In this regard, new fiber qualities and increasingly specific applications
will be developed by mixing different raw materials.

Page36


Don’t Waste Your Waste

The industry must significantly increase the share of recycled raw materials, particularly
petroleum-based polymers, in the manufacturing process. Because of increasing raw material prices,
recycling has become quite attractive to the fiber industry. For economic reasons based on the rise
in energy costs, many industries have been driven to achieve impressive recycling quotas.

Europe is at the cutting edge of this development. The recycling rates in Europe are: for
paper, 55 percent; nonferrous metal, 50 to 70 percent;  and glass, 62 percent, with
Switzerland recycling 99 percent.

In contrast, the recycling rates for US companies are considerably below the levels in
Europe. For example, the US glass industry recycles about half the quantities recycled in Europe.
However, some companies are already using polymers recycled from post-consumer waste, such as
polyethylene terephthalate bottles.


The European Challenge

Productivity is growing rapidly – close to 7 percent in 2007 as compared to an average of 3
percent in the final years of the 20th century. This bodes well for the future. In addition, there
is ever-growing recognition of the need for continuous innovation across the whole spectrum of
textile and apparel activity. There are technical textiles, but also apparel and interior textiles.
It is therefore no surprise that the European Technology Platform for the future of the textile and
apparel industry, established at the end of 2004, sees the following three main cornerstones:

•    a move from commodities to specialties;

•    new textile applications; and

•    mass-customization.

These bases provide opportunities to get away from those areas in which, because of higher
costs, the Europeans are more vulnerable to outside competition. It will, for example, be
self-evident that as mass-customization grows, so will the consumer’s desire to have the product
delivered to him or to her as soon as possible. This will mean demand for fabrics made within
Europe and then made into final apparel articles there, too.


Consumer Awareness

Ultimately, consumer awareness will play a decisive role. An increasing number of companies
are already reacting to growing demand for eco-labels that provide information on how many grams of
carbon dioxide or equivalent greenhouse gas emissions arose in production, transport and storage of
a given product. An increasingly large group of consumers is prepared to pay more money to acquire
sustainably produced products.

In terms of the quantities used, the most important raw material in the man-made fiber
industry is and will naturally continue to be petroleum, which is a finite resource, as is
well-known. “Easy oil” is a relic of the past, and the gap between oil reserves and
demand/consumption continues to grow.


Consolidation

It is clear the textile industry is   again going through a period of
consolidation. There are jobs to lose, but the European industry still employs 2.5 million people.
The automation of apparel manufacturing will stimulate a return of this activity to the European
Union (EU) and the countries in close proximity to it, and create sustainable demand for the yarns
and fabrics which that industry needs, and this demand in turn will be fueled by the growth of
mass-customization.

More generally, transport costs and environmental and ethical concerns – which until now
have tended to be costly handicaps – will foster a greater consumer awareness of the values of EU
production. Tomorrow, they will translate much more easily into consumer drivers.


Dynamic Growth Branch

From today’s perspective, one thing is clear: the man-made fiber industry will remain a
dynamic growth branch, with the exception of short-term cyclical fluctuations in demand. On the one
hand are the increasing demands for technical textiles and nonwovens. On the other hand is
population growth. Even if mankind more effectively manages to control population growth, there is
a consensus that the global population will continue to increase from the current level of 7
billion people to about 9 billion in the year 2050.



November/December 2008

FEB Releases 2009 Guide To Fibers

The Arlington, Va.-based Fiber Economics Bureau (FEB) has released the 2009 edition of the World
Directory of Manufactured Fiber Producers.

The directory includes an up-to-date listing of fiber trademarks; contact information for
more than 1,300 companies in 66 countries; the Fiber Cross Index; and an updated introduction
summarizing long-term production trends by fiber type and region, and global manufactured fiber
plant distribution. It is available in both print and CD-ROM formats and can be ordered online at
www.fibersource.com.

November/December 2008

RadiciSpandex Rebrands Fibers As RadElast®

Gastonia, N.C.-based spandex fiber manufacturer RadiciSpandex Corp., the North American business of
Italy-based RadiciGroup, has launched the RadElast® brand to identify its group of performance
stretch fibers.

The new brand — which combines the Radici name with elastane — is part of RadiciGroup’s
comprehensive corporate initiative for its fiber and textile divisions throughout the world, and is
expected to help end-users boost their sales. The branding program will be available free of charge
to fabric mills, manufacturers, designers and retailers in all end-use markets. The company will
provide hangtags featuring the RadElast logo, and will incorporate the new name into all
communications tools.

Effective November 2008, all RadiciSpandex stretch fibers will be identified by their
established code names in combination with new RadElast brand. End-uses include swimwear, lingerie,
activewear, hosiery, denim, sportswear, nonwovens, narrow fabrics, personal care, medical and
industrial applications. 

The RadElast fiber range includes S17B chlorine- and ultraviolet-resistant spandex; S17PC,
used in baby diapers and adult incontinence products; SRB premium black spandex; S45
polyether-based spandex with high-temperature resistance; and S85 clear spandex.

November/December 2008

AWI Introduces MerinoCool™, MerinoFresh™

Australian Wool Innovation (AWI) — the research, development and marketing organization of
Australia’s wool industry — has launched MerinoCool™ lightweight, woven year-round apparel fabric
weighing less than 165 grams per square meter. According to AWI, the fabric, made with yarns spun
using a new generation of fine Australian Merino wool, also offers a soft hand as well as good
drape properties. The company is targeting MerinoCool to the smart casual market in Italy, France,
Japan, Korea, India and China.

AWI also has introduced MerinoFresh™, a technology that permits woven apparel made from
Merino wool to be refreshed or cleaned by rinsing for three to four minutes in a domestic shower.
The process removes smog, dirt, common water-based stains, smoke and odors. Water-based stains that
are more infixed can generally be removed with a mild detergent solution.

Following rinsing, garments can be drip-dried at room temperature. Usually, the garments
need no ironing following cleaning.

The MerinoFresh manufacturing process involves the following: first, the base fabric is
stabilized to eliminate shrinkage; then the garment is sewn and made up using special techniques;
and lastly, the garment seams, creases, trims and accessories are permanently set.

November/December 2008

Miroglio Partners With NatureWorks

Italy-based textile manufacturer Miroglio Group has signed an Ingeo™ Master License Agreement (MLA)
with Minnetonka, Minn.-based biopolymer producer NatureWorks LLC to offer Ingeo fiber as a raw
material and manufacture its own range of Ingeo yarns. Miroglio will develop and use the yarns
internally for a variety of textile applications, and will market and sell them globally to textile
suppliers. 

Ingeo biopolymer is made entirely from renewable plant resources. Its production uses 65- to
77-percent fewer fossil fuel resources than traditional polymers and reduces greenhouse gas
emissions by 91 to 97 percent, according to NatureWorks.

“Signing our MLA with NatureWorks demonstrates our belief in Ingeo as a new material with a
bright future for us all,” said Stefano Cochis, commercial director, Miroglio. “It’s the essential
product of real difference that we can add to the wide range we offer customers today, and we know
we can leverage its unique message into the market and match the growing demand for better, more
responsible, low carbon footprint products that offer that point of difference today.”



November/December 2008

Lenzing Expands Tencel® Production

Austria-based cellulosic fiber manufacturer Lenzing AG has expanded capacity at its Heiligenkreuz,
Austria, facility for the production of Tencel® fibers from raw pulp materials. The company
invested 25 million euros to increase production capacity from 10,000 tons to almost 50,000 tons of
Tencel annually and to improve infrastructure at the plant. The site’s second production line now
includes two new spinning lines.

November/December 2008

Going Green: Beyond Marketing Hype


T
he increasing focus on the well-being of planet Earth has engendered concerns about what
effects many products might have on the health of consumers and the planet alike, as well as new
expectations with regard to what goes into the making of those products. Consumers are making it
known that they want products that do not have deleterious effects on the environment, in their
making or their use or their disposal. Partly in response to these expectations, partly out of
their own sense of responsibility, and partly out of a realization that it is economically
beneficial to do so, certain manufacturers are taking steps to reduce the environmental impacts of
their products; and they want to make sure consumers know about their efforts. Other manufacturers
are looking for aspects of their products that they can market with any sort of environmentally
friendly association – whether there is a clear connection or not – in a “greenwashing” effort to
leverage the current eco-sensitivity to their advantage.

As a result, the consumer is receiving messages left and right touting products’
environmental integrity. Marketing materials are full of words such as “green,” “eco-friendly,”
“sustainable,” “renewable,” “recyclable,” “organic” and a host of other related terms. The claims
may not always provide a clear picture of the product’s true environmental impact because the terms
may be used in such a general way as to have no certifiable meaning but rather convey simply an
idea of environmental responsibility; or they may relate to one aspect of a product – for example,
a 100-percent organic cotton garment – while another is clearly not environmentally friendly – that
garment has been dyed using toxic dyes in a process that pollutes the river into which the plant
releases its effluent. If marketing claims cannot be substantiated or are not qualified, or if they
are shown to be deceptive or misleading, that greenwashing has the potential to cause consumers to
become skeptical or, worse, tune out the message altogether when valid claims are made for other
products.

climber
Outdoor apparel marketer Patagonia’s Common Threads Recycling Program takes back worn out
Capilene® base layers and other used clothing to recycle into new garments.

Photo courtesy of Patagonia Inc.


FTC Green Guides

In a move to address green marketing issues, the Federal Trade Commission (FTC) developed
its “Guides for the Use of Environmental Marketing Claims,” also known as the Green Guides, to
provide a framework for voluntary compliance with FTC regulations related to environmental
marketing and advertising practices. First published in 1992, the guides were last reviewed in
1998. With the recent onslaught of green marketing claims, particularly with regard to textiles and
building, the FTC is now considering further revisions, and over the past year has held a series of
workshops to educate the public about the various issues surrounding such claims and receive input
to help it in making the revisions.

The general principles set out in the original Green Guides apply to all green marketing
claims and stipulate that these claims, whether specific or implied, must be substantiated or
qualified in a way that consumers can understand. The guides also provide examples of general and
specific claims to illustrate comparative degrees of clarity or accuracy.

The textile-related portion of the FTC’s workshop titled “Eco in the Market – Green Building
and Textiles,” held in July of this year, brought together representatives of Organic Exchange,
Cotton Incorporated, North Carolina State University, US Customs and Border Protection, the Organic
Trade Association (OTA), outdoor apparel marketer Patagonia® Inc., The Good Housekeeping Research
Institute and Consumer Reports to share their knowledge and ideas about what is and isn’t green and
propose parameters for FTC guidance regarding marketing and labeling of green textiles.


Degrees Of Green

As was pointed out at the FTC workshop, there are varying degrees of green in different
textile products. In some, the materials used may be green, but the manufacturing process may not
be, or vice versa; and marketers need to be clear as to which aspect of a product a green claim
applies. For example, the National Organic Program stipulates that a textile containing a blend of
organic cotton and another material, such as spandex or nylon, must state all of the components and
not just the cotton content.

As another example, one also must be careful when making claims for a product that contains
a blend of organic, biodegradable cotton and recycled polyester in a single textile article. While
each fiber may be sustainable on its own, another issue crops up when they are combined either in a
single yarn or as separate yarns woven into one fabric: It can’t completely biodegrade because of
the polyester content, and it can’t be recycled in a cradle-to-cradle polymerization process
because of the cotton content. It could be cut into strips and used in another textile, say, a rag
rug, or repurposed in some other way, but it still will eventually enter a noncompostable waste
stream. In such a case, the green credentials of the materials can be touted, but biodegradability
or recyclability claims could not be made for the end product unless the two materials can be
separated to go into the relevant downstream processes.

As another, not entirely unrelated, issue, can the same performance claims be made for a
regenerated cellulosic fiber as for the raw fiber from which it is derived? This question has come
up in the case of bamboo, a renewable, fast-growing resource that needs little water and no
pesticides for its cultivation. The raw fiber has antimicrobial and moisture-transport performance
properties, and these properties are claimed for many of the apparel products currently offered on
the market. But, according to workshop presenter Dr. Peter Hauser, NCSU, while these properties are
retained in bamboo that has been processed mechanically similarly to the processing of flax into
linen, it is unclear that they are retained in the more commonly used regenerated solvent-spun
fiber, which is essentially either a rayon fiber – whose chemical-laden processing raises
environmental issues – or a lyocell fiber – which is made using a recoverable and reusable solvent
in a sustainable closed-loop process. Hauser stressed the need for scientific peer-reviewed
documentation of any claims regarding fiber performance. His call was backed up by presenters
Kathleen Huddy, The Good Housekeeping Research Institute, and Pat Slaven, Consumer Reports.


Third-Party Certification

Companies may have their textile products and processes evaluated and certified for their
environmental integrity by a third-party agency such as MBDC; Switzerland-based International
Oeko-Tex Association; Switzerland-based bluesign technologies ag; the International Working Group
of Global Organic Textile Standard (GOTS), a group comprised of OTA and three other associations
promoting the use of organic raw materials; and other agencies. Such certifications serve to assure
consumers that green marketing claims made for those products are valid.

The Oeko-Tex® Standard 100 certifies that textiles from raw materials through end product
comply with prohibitions and regulations regarding the presence of harmful substances, as well as
with criteria related to substances known to be harmful to human health but not yet regulated, and
with other parameters related to colorfastness and pH value. Oeko-Tex also offers a Standard 1000
to certify compliance by manufacturing plant operations with environmentally responsible production
parameters.

MBDC’s Cradle to Cradle Design Protocol and the bluesign® standard encompass, each in one
certification, the entire supply chain and all manufacturing processes that go into a product. All
materials going into a product – fibers, yarns, dyes, chemicals and other components – plus
manufacturing parameters – energy and resource usage, wastewater management, plant emissions,
employee health and safety, and other parameters – are evaluated, and products are certified at set
levels based on the degree of optimization. Both organizations work with clients to help them
design out of their products substances and practices that are harmful to the environment and human
health, and incorporate the most environmentally beneficial alternatives and solutions possible.

GOTS encompasses the production, processing, manufacturing, packaging, labeling and
logistics-related aspects of organic textiles from fiber through end product. Certified products
may be labeled in one of two ways: “organic” or “organic – in conversion,” for products containing
at least 95-percent certified organic or in-conversion fibers; and “made with x-percent organic
materials” or “made with x-percent organic – in conversion materials,” for products containing 70-
to 95-percent or more certified organic or in-conversion fibers.


Transparency Is Key

Ventura, Calif.-based Patagonia has long been committed to environmentalism, from its
sensitivity to the impact of its products on the environment and its commitment to foster the
well-being of the people producing them as well as its direct employees; to building its own solar
collection system to help power its headquarters and implementing other earth-friendly measures in
Ventura and at its LEED-certified distribution center in Reno, Nevada; establishing a
garment-recycling program to take back worn garments for reprocessing into new ones; and giving
back a percentage of its profits to environmental causes; among other measures. The company’s
website offers extensive information about its environmental commitment, including analyses of the
environmental footprints of a number of its products.

In order to promote its eco-textile program, Patagonia labels products with a green E when
they contain at least one-third by weight of what it considers environmentally friendly fibers. The
company also includes additional information about the labeling in its stores and catalogs. 
The fibers that qualify for this designation include organic cotton, hemp, chlorine-free wool,
recycled polyester, recycled nylon and Tencel®.

In 2007, Patagonia became the first brand globally to become a member of the bluesign
standard. As a brand member, it has committed to promote implementation of the bluesign standard
throughout its supply chain.

Rob BonDurant, Patagonia’s vice president of marketing, speaks to the need for transparency
in green marketing: “If green marketing is a first step for a company, we believe it’s a good first
step in the right direction. Eventually, customers are going to want to know the specifics behind a
company’s green marketing claims – and companies will be either inspired or literally driven
towards making changes in the way they do business. At Patagonia, we believe that transparency is
key. Corporate honesty begets customer loyalty. When a customer knows they can come to you to learn
about where your product came from, who made it and what it’s made of – everybody wins.”



What Is Green?

Green connotes the general idea that a product or a process is beneficial to, or at least
has minimal impact on, the environment with regard to energy, resource and raw material usage;
greenhouse gas and toxic emissions; and/or waste generation. It often is interchangeable with
environmentally friendly, eco-friendly and other general terms.

Sustainable is a broader term that encompasses not only the environment, but also economic
and social equity considerations. A sustainable product has minimal impact on the environment in
that harvesting or resource usage does not deplete or permanently damage the resource; plus, it can
be produced in an economically viable way and it is produced with consideration for the welfare of
employees and others impacted by the production.

Cradle-to-cradle refers to a regenerative life cycle in which no material making up a
product becomes waste because noncompatible materials in the product can be separated and all can
be recycled and reused for the same purpose as the original virgin material. This is in contrast to
a cradle-to-grave product that cannot be recycled and ends up in a landfill at the end of its
useful life, or a cradle-to-gate product whose environmental footprint has been calculated from raw
material acquisition through the manufacturing process.

The term “cradle to cradle” was coined by Charlottesville, Va.-based McDonough Braungart
Design Chemistry LLC (MBDC), a design consultancy that advises companies in the area of what it
calls eco-effective product design, taking into account all aspects of production and material use.
MBDC also is a third-party certifier, using its Cradle to Cradle Design Protocol to assess
materials and processes according to environmental and human health criteria.

As noted elsewhere, there are numerous other terms as well that are used in describing a
product’s and process’s environmental integrity or function.



The Greening Of The Cotton Supply Chain

A video produced by Cotton Incorporated examines new processing technologies that are
significantly improving the sustainability of the entire supply chain for cotton products. While
cotton cultivation practices have improved vastly in recent years, including the development of
varieties that have increased yields and require far less chemical and water input, new dyeing and
finishing technologies also require fewer chemicals and consume less energy and water while also
releasing cleaner effluent. Process technologies highlighted include new enzymes and ozone
technologies that replace harsh chemicals in fabric finishing, very low-moisture foam dyeing
technologies, waste- and solvent-eliminating digital printing technologies, low-salt reactive dyes,
bleaching processes that drastically reduce water and energy use, and technologies that combine
dyeing and finishing in one step, among other technologies. The video also presents the point of
view of respected retailers who expect

manufacturers to implement these new green technologies as a prerequisite to a continuing
business relationship.

The video, “Textiles: The Sustainability Revolution,” can be viewed at
www.textileworld.com/video/cotton.html



November/December 2008

Orders Becoming Smaller


T
he current economic uncertainty has made already nervous retailers even more
inventory-conscious and has resulted in a significant decrease in the volume of orders for
spinners.

“Orders here are becoming very erratic and short,” said one Georgia specialty spinner. “They
will be quick delivery only. Retailers don’t seem to be interested in filling their stores right
now; they are buying as little as they can.”

Added another: “We’re still running flat out. But our orders are much smaller. Everything we
get is small and quick-turn.”

A North Carolina spinner said: “Uncertainty is something we’re all going to have to deal
with. No doubt, we see much uncertainty in retail. Our customers tell us that retailers are waiting
until absolutely the last minute to place orders. And when they are replenishing, if they sell 10,
they replace five. They have become very careful about managing their inventories – no one wants
anything going forward.

“Frankly, we’re having to take some risks in the credit market we would prefer not to take,
but in order to help keep our customers in business, we don’t have any choice but to do that,” he
added. “Many of our customers are not as strong right now as we would like for them to be. Some of
our customers that have been somewhat marginal have found it very difficult to get their bankers to
work with them. They are not giving any leeway.”

Several spinners expect an upturn in orders shortly after the holidays. Said one: “This year,
especially, I think you are going to see retailers drop their prices to the minimum to clear their
shelves. I anticipate that will result in a sharp increase in orders. But it is likely to be very
short-term.”


Infrastructure Question

One major spinner is increasingly concerned about the vanishing textile infrastructure in the
United States. “Our knitters are gone, our weavers are gone, the apparel manufacturers are gone,
particularly the cut-and-sew. For the few that are left here, they’re doing OK. But I’m hearing
from a lot of companies that were doing business in China who are no longer enamored with that way

of doing business. They might like to source a little closer to home, but they have capacity
concerns.”

Relating to China, one spinner in the upholstery market said he is hearing positive news
about the potential return of substantial upholstery fabric business to the Western Hemisphere. “We
hear over and over that some of the furniture people that have tried to buy fabric and kits in
China are not as happy with it now as they once were.”


Package-Dyed Yarns

It has been no secret that the US package-dyed yarns business has suffered for some time as a
result of overcapacity in the marketplace. “At some point, there had to be some rationalization of
capacity, and that has now happened,” noted one spinner, referring to the recent closings of
Spectrum Yarns, Burke Mills and Grover Industries. “While unfortunate, this may present some
opportunities for those of us who are still in business.”


Election Impact

Several spinners believe the US general election has added to the recent slowing of orders.
“Many companies have been taking a watch and wait approach to business in election years,” said one
spinner. “I believe, regardless of outcome, that there will be some confidence-building going on as
far as consumers are concerned, and they will go out and buy some things.”


Odds And Ends

Following are quotes from spinners in various industry segments:

“The knit outerwear trade has been extremely weak.”

“Our hosiery business continues to hold up fairly well, but a reason for that is that we
don’t deal in commodity socks. We target a price range that’s a little higher.”

“The industrial markets, for industrial upholstery, workstations, office furniture and the
like have been very soft.”

“Most of our orders have been in light counts. We’ve seen very little in heavy counts.”

“Fiber prices are not coming down as quickly as we think they should, especially on acrylic.
It looks to us like the chemical companies have kept the supply tight to keep their margins up.
That’s caused a lot of people to move out of acrylic into polyesters.”



November/December 2008

A Disappointing Year


G
eneral economic woes and uncertainties are combining to take their toll on textile
activity. Year-to-date shipments of basic textiles at latest report were lagging behind comparable
2007 levels by more than 6 percent. And in the case of more highly fabricated products, the
year-to-year decline was an even more disturbing 9 percent. Retail sales of apparel products also
have recently dipped into negative territory. More important, the upcoming holiday season isn’t
very likely to provide any turnaround. To be sure, the National Retail Federation (NRF) recently
predicted that Christmas sales would rise 2.2 percent this year. But that’s only about half the
10-year average. Also, the fact that retail apparel prices have edged up in some instances over the
past 12 months would seem to suggest that the NRF-forecast gain in real terms would be fractional
at best. Moreover, since this projection was made before the big Wall Street meltdown, the final
pushers may be hard-put to even equal, much less top, last year’s level. Still another telltale
sign of buyer pullback: Consumer credit has started contracting for the first time in a decade.
Given all these developments,

Textile World
editors are again revising their overall 2008 textile prediction. Right now,

TW
sees shipments of combined basic and more highly fabricated textile products falling as much
as 9 to 10 percent — well above the 5-percent and 8-percent declines of 2006 and 2007. It’s also a
big difference from as recently as six months ago, when little more than 5- to 6-percent slippage
was anticipated.

bftextileindices


Early 2009 Outlook

The really big question these days, however, is not about 2008, but rather how the new year
will fare. The answer: Not well, but perhaps not as badly as some purveyors of doom and gloom would
have us believe. To be sure, we’re still not out of the woods, and clearly, the general economic
picture leaves a lot to be desired. But

TW
believes any additional gross national product (GDP) declines over the next few quarters will
be manageable, thanks to a combination of factors — including the recent spate of bold US
fiscal and financial moves, lessening inflationary pressures, and the quick inventory response to
less-than-hoped-for demand.

On the inflation front, for example, crude oil and gasoline tags continue to decline, thus
leaving more money for other purchases. And there has been little inventory buildup, both overall
and in the case of textiles, where days’ supply is pretty much where it was a year ago. Upshot: the
big inventory corrections that traditionally have accompanied economic downturns will be relatively
mild this time around. Factoring in all the above into their forecast equations, economists
responding to a recent Wall Street Journal survey confirm

TW
’s feeling that near-term GDP declines will be relatively modest.

The same is likely for textiles and apparel — especially since a big portion of today’s
spending cutbacks seem to be centered in big-ticket durable goods items like cars — thus
leaving  a bit more cash available for clothing and home furnishings. 


Thoughts On Imports

The US trade situation will also require some close monitoring over the next few months.
True, incoming shipments of textiles and apparel on a square-meters- equivalent-basis have not
proved to be that much of a problem this year. Indeed,  figures covering the first 8 months of
the year show a decline of nearly 6.5 percent when compared to a year earlier. Even incoming
shipments from China are down about 3 percent, but this slowdown is not guaranteed to continue
because current safeguards on many categories of American textile and apparel imports from the
nation are scheduled to end in January.

The big fear is that this could result in another huge surge such as the one following the
January 2005 discontinuation of quotas. At that time, Chinese textile and apparel shipments to the
United States soared by more than 1,000 percent in some product lines. Hopefully, this huge jump
won’t be repeated this time around. In any event, Washington lawmakers are pressuring for new
safeguards aimed at establishing new monitoring procedures, including the possible implementation
of new quotas and/or tariffs, that could go into effect almost immediately. Because chances for
some action seem fairly good,

TW
  remains optimistic that further big import gains won’t be a major industry problem.
Indeed,

TW
is hopeful that Chinese imports in 2009 can be held close to current levels.

Sponsors