AAPN’s Annual Meeting To Focus On Sustainability

(Atlanta, January 29, 2010) The American Apparel Producers’ Network (AAPN) will host its annual
meeting May 2-4, 2010 at the Loews Miami Beach. The theme is SUSTAINABILTY: Let’s Get It Right!

“Walmart has been the retailer to highlight the sustainability movement,” says AAPN Managing
Director Mike Todaro. “and now it has caught on across the industry. But even Walmart found that
92% of what has to be done falls outside their enterprise, in the respective supply chains of their
vendors. When we learned that, we knew that as the industry’s only end-to-end supply chain network,
we could accelerate this campaign”.

To start with, sustainability itself is a moving definition. Its many things – environment,
social responsibility, risk assessment, balanced sourcing, economic considerations, compliance,
testing, certification and a widening range of scores to be kept. So we have to agree on what parts
of sustainability our network can actually impact.

That’s why our speakers at the meeting include Kohl’s, Patagonia, Nike, Anvil Knits and Under
Armour as well as factories, yarn spinners, mills, trim, shipping, labs, finance, government and
designers. The agenda spans the supply chain from end to end, with the primary focus being those
who go face-to-face with increasingly demanding consumers – brands and retailers.

Sustainability takes a top down commitment from the corner office; an understanding of who in
the supply chain does what; and the strategic practice of balancing sourcing with new requirements
and mandates coming out of the sustainability movement. That’s why AAPN is going to focus on actual
supply chains working today in the US, Mexico, the Caribbean as well as Central and South America.

“We’re going to take supply chains working in this hemisphere right now – cotton farming,
spinning, weaving, trim, cut/sew, finishing, logistics, distribution and brand/retail – and hold
them up to the light and see for ourselves what is working. We believe in theme and variations. Get
it right once, recognize its variations forever”, says Todaro.

Leveraging the over 150 companies and over 600 individuals in the AAPNetwork, the meeting
will involve work groups and projects with these five goals:

· Create a cumulative shared vision of the direction of sustainability in apparel/textiles;

· Document, publish and maintain the principles and mandates for change centrally;

· Set standards, share scorecards to guide actions across the chain, openly, transparently;

· Build upon existing AAPN relationships to incorporate new stakeholders committed to
sustainability;

· Hit the road, speak, make corrections, communicate them to the industry.

Organized in 1981, AAPN is a unique industry network of over 600 professionals in the apparel
supply chain. Member companies include every link from cotton farming to national retail chains,
stretching from ‘the dirt to the shirt’. AAPN remains the best place to get facts and clarity, read
breaking news, find answers, see factories, reach leaders, build relationships, interact at
meetings and get results. AAPN has proven and specialized expertise in the apparel supply chain of
the Western Hemisphere.

Learn more about the meeting on
http://www.aapnetwork.net/about/2010-Annual-Meeting.cfm

Posted on February 2, 2010

Press Release Courtesy of AAPN

Knit-Rite Expands Production At Ellerbe, NC, Facility

Knit-Rite Inc., a Kansas City, Kan.-based manufacturer of specialized socks and hosiery for medical
and consumer markets, will invest more than $1.1 million to update and expand its Ellerbe, N.C.,
production plant, creating 24 jobs in the process.

The facility knits, dyes and finishes compression hosiery, socks and other specialty textiles
marketed under the Therafirm® brand.

Knit-Rite was established in 1923 and offers its products through a large network of vendors
nationwide. The company acquired Therafirm Inc., along with TheraFoot Technologies Inc., in 2000.

January/February 2010

ITMF Meets In Shanghai


F
or the first time in its history, the International Textile Manufacturers Federation
(ITMF) Annual Conference convened in China. The global summit of the textile industry took place in
the vibrant city of Shanghai in October 2009. Once more, the ITMF congress proved its importance,
bringing together the top leaders of the global textile industry.

The ITMF congress is the highest-ranking international meeting point for networking. Leaders
of the global textile machinery and textile industry meet not only to attend an excellent
conference, but, even more importantly, to exchange and strengthen contacts among themselves.

Under the general theme, “Structural Adjustments in the World Textile Industry,” experts
from around the world mentioned that meeting the demand, improving quality, and sustainability are
the main issues for the near future. The theme is based on the current situation of the world
textile industry, which is challenged by various difficulties like structural technological
adjustments in this traditional industry, the short supply of resources and the increasing
consciousness concerning the environment. This report can only reflect a fraction of the
information given in the presentations.


Cotton In Focus

As is the tradition, cotton was one of the main subjects to be discussed. ITMF was founded
in 1904, at a meeting held in Zurich, Switzerland, on the initiative of the British cotton spinning
industry. That’s why it still has a very close relationship with the whole cotton industry.
However, ITMF’s activities today cover the entire textile industry including nonwovens and
technical textiles. Terry Townsend, executive director of the Washington-based International Cotton
Advisory Committee (ICAC); and Gao Fang, secretary general, China Cotton Association, discussed
current cotton trends. Since the mid-1980s, cotton consumption has increased from 6 to 18 kilograms
per capita. It is not easy, Townsend said, but he is convinced the need for cotton will grow.
Sustainable production, he continued, is of utmost interest for producers. In times of heightened
environmental consciousness, it is also very important to relay the fact that cotton uses fewer
chemicals.

 
townsend
Terry Townsend, executive director, ICAC




Overcapacity

Gao Fang mentioned that 30 to 40 percent of all cotton processed in China is still imported.
On top of that, the price of cotton has dropped by 20 percent, and the farmers virtually don’t make
any money. In the near future, China will support its cotton industry with subventions to be
competitive, and, basically, to survive. On the other hand, the acreage will be further reduced.
Another problem is the huge overcapacity of the textile industry. In general, China is facing
increased prices for energy, raw material and labor, which must be faced and elaborated carefully.

fang
Gao Fang, secretary general, China Cotton Association


Man-made Fibers Also Face New Challenges

Not only cotton, but also cellulosic and man-made fibers are more and more in the focus of
attention, and play an important part in the ITMF event: Friedrich Weninger, member of the
Management Board of Austria-based Lenzing Group, made an interesting point. He said that consumers
– triggered by consumer interest, policy makers and big retailers – are starting to ask questions
about the production processes: What is the impact of your industry on the environment, or what is
the ecological footprint of the products? And, of course, as a viscose producer, he raised the
provocative question: Are cellulosic fibers more sustainable than man-made and/or natural fibers?
However, as already mentioned above, the point is to relay the message to the consumer and to prove
the ability to work in a more sustainable way.

weninger
Friedrich Weninger, Lenzing Group Management Board member


No Protectionism, Please

Du Yuzhou, president of the China National Textile & Apparel Council (CNTAC), welcomed
the global textile community and said CNTAC was honored to host the 2009 conference. He mentioned
the power and the drive of Shanghai as a booster for the economy and said he is convinced the
current recession is over. He regretted that in spite of the global crisis and the commitments to
work together, countries again have started to erect barriers with the aim of protecting their
local economies.

Gerhard Schröder, former Chancellor of Germany, was one of the keynote speakers. He also
sharply criticized the protectionism of some countries. In addition, he is an advocate of open
markets but a regulated financial system. “It can’t be,” he said, “that banks and insurance
companies are working on a global scale but acting like local companies.” The opening of markets
would improve the situation of the Third World countries and result in a better understanding of
one another. The fight against terrorism can only be won if the people have an alternative,
Schröder said. The World Trade Organization is one thing, but the United States and Europe should
help the Third World solve its problems, and countries like India should also abolish their high
tariffs.

itmfman
Gerhard Schröder, former Chancellor of Germany, sharply criticized the protectionism of
some countries.


Problematic Future

The other keynote speaker was Dr. Edmund Phelps, McVickar Professor of Political Economy at
New York City-based Columbia University and director of Columbia’s Center on Capitalism and
Society, and winner of the 2006 Nobel Prize for Economics. Phelps mentioned in his discussion with
Du Yuzhou that the United States has lost its dynamism in the last 10 years. He is sure that this
fact pushed the financial industry to find new fields in which to make money, which eventually led
to the sub-prime mortgage crisis. His speech was not very positive, as he warned that household
costs will further increase, and it will take some 10 to 15 years to put the United States back on
track. Less money at home means less expenditure, which is the driving force of any economy. As in
Europe, the United States is investing less money, and this leads to an even weaker U.S. dollar.
The drop in loans is dramatic, and this will further decrease the U.S. gross domestic product.

Like Schröder, Phelps also foresees new barriers and tariffs, which is very bad for the
Chinese industry. He suggested that China should accelerate its indigenous innovations to become
more autonomous. In the last 30 years, every product has been based on know-how transfer from the
West. But not only China should do that: Every country is requested to invest more in spite of the
crisis. Innovations are the only key to success in a future that is even more doubtful than ever,
not only for textiles but for the world as a whole.

 
itmfspeakers
2006 Nobel Economics Prize winner Dr. Edmund Phelps of Columbia University engaged in a
lively discussion with CNTAC President Du Yuzhou.



China Textile City

As in every year, the day after the congress closes, the delegates have the opportunity to
visit some important local textile companies or associations. This day-long trip became the true
highlight of the event: a visit to the impressive China Textile City (CTC).

A three-to-four-hour car trip northeast of Shanghai, China Textile City – located in Keqiao,
Shaoxing County – is huge – almost impossible to imagine. CTC was built in the open countryside
some 20 years ago. Markets here gather together all kinds of fabrics, fibers, yarns, home textiles
and, of course, apparel, but also more and more industrial textiles.

shanghai
China Textile City in Keqiao, Shaoxing County, is the largest textile trade center in the
world.


Biggest Textile Trade Center In The World

After some 20 years of development, the structure of the whole complex basically is founded
on four textile trade platforms:

•    Traditional Trade Zone;

•    International Trade Zone;

•    Market Innovation Zone; and

•    Textile Raw Materials Trade Zone.

CTC is a textile distribution center of the very largest scale and presents the greatest
variety of textile products in China. In addition, it is the largest textile professional market in
Asia, and the biggest textile trade center worldwide. A massive array of big buildings forms a sort
of cluster for the domestic textile industry. It covers a constructed area of more than 3.2 million
square meters. At present, CTC includes more than 20,000 business rooms and 19,000 operating
companies. According to its management, CTC makes transactions for tens of thousands of fabrics;
the daily customer flow is more than 100,000 persons. There are more than 3,500 permanent overseas
purchasers and more than 700 permanent overseas representative agencies.

Goods here are sold to virtually the whole world as well as to the Chinese regions.
According to estimates, some 83 percent of the global man-made fiber production already is done in
Asia. CTC management says one-quarter of global man-made fabrics are traded here. At present, it
has also established business relations with nearly half of all national textile enterprises.
Therefore, the complex has achieved an annual market turnover of more than 60 billion renminbi.


São Paulo, 2010 Venue

As is done every year, the host country of the next ITMF congress was announced. The 2010
ITMF Annual Conference will be held in São Paulo, Brazil, October 17-19. The Brazilian Association
for Textiles and Apparel is presenting its country with its Latin temperament. Again,

Textile World
and its sister publications,

Textile World Asia
and
Textiles Panamericanos, have been selected as the official media partners for the
2010 conference.

January/February 2010

Color & Fabric Trends Spring/Summer 2011


Dow Fiber Solutions

Forecasting 2011 color and fabric directions, Bengt Jacobsson, a consultant to Midland,
Mich.-based Dow Fiber Solutions, recently showed new concepts developed using Dow XLA™ comfort
stretch fiber. In general, he sees a return to organic – on the back burner for several seasons
because of its high price tag in a struggling economy; technological advances with smart fiber
blends and new finishing techniques; and emphasis on performance with fashion. “Bi-stretch is
expanding,” Jacobsson said. “A year ago, we had one mill involved. This year, there are 10.”

For this new season, Jacobsson shows four directions that take us to sea. Soft, natural
colors that reflect Nordic light in spring are in his Baltic Breeze group. He points out warm buff
and pebble, blued grays, lavender and two yellowed greens. Casualwear fabrics are woven with
cotton, linen or wool blended with XLA. They are soft and washed, but not vintage. Patterns tend to
be small and discrete. Shirting fabrics shown include small checks in cotton/XLA from India-based
Arvind Ltd. There are linen bottomweights from Parcotex Co. Ltd., Hong Kong, and herringbones and
twills from Textil Santanderina, Spain.

In the Atlantic Shores story, classic sportswear colors are washed and sun-bleached. Flag
colors and faded neutrals are shown. Fabrics are woven in cotton and cotton/nylon blends with XLA.
Shirtings are nautical and preppy. There are chambrays, seersuckers, oxfords and piqués. Patterns
include regatta stripes, gingham checks and small dobbies. China-based mills Jiangsu Lianfa, Luthai
Textile Co. Ltd. and Youngor Sunrise are weaving them. Piqué, denim, clean twill and gabardine
bottomweights are woven by Lufeng and Sunshine, both based in China, and India-based Vardhman.

Flower and sorbet colors are in the Mediterranean Cruise range. Light and bright strawberry
shades, soft apricot, lime ice, glacier, surf and regatta blue have a chilled edge to them.
Cotton/XLA satin stripes, openwork patterns and gingham shirtings by Esquel Group, Hong Kong, have
a late-1950s retro look. Bottomweights have subtle texture, sheen or a peachskin finish. There are
lustered twills, honeycombs and basket weaves.

Pacific Sunset colors are vibrant. Intense golden yellow, neon pink, two red-purple shades,
plum and sapphire blue are in this range. Fabrics have high shine, transparency, and a lot of
stretch for close-fitting shapes. Lightweight polyurethane-coated fabrics in cotton/XLA from Bondex
China Co. Ltd. are supple. Wool/polyester/XLA suiting weights from India-based Raymond Ltd. are
cool to the touch.

A special focus is denim. Weights range from 7 to 12 ounces. Fabrics are supple; all have
comfort stretch.

According to Jacobsson, technology has caught up with fashion to provide fabrics that combine
good looks, comfort and performance.

dowcouple
Dow Fiber Solutions’ Mediterranean Cruise story features chilled strawberry, apricot, lime
ice, glacier, and surf and regatta blue shades.


Moda In

At a recent event sponsored by the Italian Trade Commission (ITC) in New York City, Angelo
Uslenghi, trend forecaster for the Moda In fabric show, previewed Spring/Summer 2011 directions
that will be shown in Milan at Milano Unica Feb. 16-18, 2010. Commenting on the current economic
situation, Uslenghi said recovery from the recession requires a pragmatic approach. He suggests
focusing on what is practical and realistic.

Uslenghi proposes four themes. For the Better shows casual, comfortable high-performance
travelwear.   For Fun is spontaneous, with emphasis on sports. Fabrics in the Full Bloom
range are fresh and have a rustic/refined mix. Energy is the focus of his Full Sun range, with a
tropical and desert-like influence.

Colors in the For the Better theme are neutrals combined with soft, pale pastels plus urban
darks. Gray, navy, light camel and olive are joined by white, pale heather, soft rose, pistachio
tint, aqua, lemon and pink.  Many fabrics have an Ivy League look. Linen and cotton are fibers
of choice. Faded denim and chambray, drill, panama and piqué are some of the suggestions.
Peachskin-finished silk, fluid slubbed jersey, super-light voile and organza are others. Crinkled
surfaces include elephant-skin wrinkles and pinstriped seersucker.

Colors Uslenghi pointed out in the For Fun range include nude and a shade he calls “sinful
red.” Others in this group are bright geranium pink, sunny yellow, grassy green, lacquer orange,
flag and cobalt blues, matte black, and lustrous silver. Fabrics tend to be silky and lustrous;
many are woven with cupro or are chintz-finished. There are swimwear qualities, stretch terry,
ombred chantilly lace, fishnet, georgette and charmeuse. A lot of fabrics have application
treatments such as raised lamé traceries, mesh inserts or satin ribbon appliqués. There are random
stripes, color blocking and nautical prints.

Full Bloom shades are intense, bright and luminous. Navy, moss, aubergine and deep berry
combine with lively shades of bud green, forsythia, azalea pink, cherry and delphinium. Fabrics
have a country rustic aura. There are worn denim, seersucker, madras and gingham. Parachute cloth
has bubble embossing. There are micropleated surfaces, double organza with petal inlays and tie-dye
effects. More refined fabrics take on an oriental look with oversized or microscaled patterns.
Gold-threaded voile, block-printed paisley, small flower-garden prints or large screen-printed
hibiscus are shown.

Full Sun colors are vibrant and fiery contrasted with energetic desert tones plus black and
tan. There are two hot orange shades, orange-cast red and red-brown. Ultra-violet, burnished gold,
sienna and teal are the contrast shades. Cheesecloth, panama and basket weaves have a dry touch and
are woven with linen or jute. There are voile embroidered with cork, sanded poplin, sateen and
loose jersey with printed jallabah stripes. Dotted jacquards, grooved burn-outs, sequin appliqués
and camouflage patches with a reptile look are some of the suggested patterns.

kamen
ITC Director Dr. Aniello Musella (left) welcomes Moda In Trend Forecaster Angelo Uslenghi
during Moda In’s Spring/ Summer 2011 preview sponsored by ITC.



Pratt Exhibits Sustainable Fashion

“Ethics + Aesthetics = Sustainable Fashion” is the title of an exhibition on view until
February 20 at New York City-based Pratt Institute’s Manhattan Gallery. Organized around the themes
“Reduce, Revalue, Rethink,” the show has been developed to deepen understanding of sustainability
within the fashion system.

“Reduce” looks into how designers use minimalist design plus innovative materials and
pattern-making to create garment versatility and longevity. Included in this category is a jumpsuit
and dress from SANS, designed by Alessandro DeVito and Lika Volklova in silk/bamboo and
silk/organic cotton fabrics; Caroline Priebe of Uluru’s reversible dress with pockets and only two
seams; men’s khaki organic cotton work pants that have a worn, slightly washed look, by Rogan
Gregory and Scott Mackinlay Hahn of Loomstate; and Eviana Hartman of Bodkin’s women’s collection
that includes dresses, tops, shorts and parkas in fabrics of undyed Tencel®, organic cotton and
post-consumer recycled cotton.

dresses
Fashions from SUNO are made in the garment district using Kenyan Kangas cloth.

“Revalue” looks at ways garments can become less disposable. Alabama Chanin, a 2009 Council
of Fashion Designers of America/Vogue Fashion Fund finalist, combines new, organic and recycled
materials in her denim dress and appliqué swing coat. A patchwork dress by Susan Cianciolo is made
with hand-screened, hand-dyed vintage cotton fabric. Tailored dresses and jackets from SUNO by Max
Osterweis are made in New York City’s garment district using Kangas cloth from Kenya.

“Rethink” challenges the seasonality of fashion and dependence on fast change. Kelly Cobb’s
100-Mile Suit is made by regional crafters using products sourced less than 100 miles from her
home. The firm Slow and Steady Wins the Race uses cotton canvas and muslin for a collection of
shoes, bags and deconstructed men’s shirts.

January/February 2010

Recent Developments: Weaving Technology


F
abric manufacturers are under pressure more than ever. Weavers around the world are
fighting against higher costs in terms of labor, raw material, production time and reduced energy
consumption to remain competitive. In turn, the machinery suppliers are challenged to provide
up-to-date machinery.

In times of increasing energy costs, it is of utmost interest for fabric producers to use
weaving machines that offer reduced energy consumption.

picanol
The Adaptive Relay Valve Drive (ARVD) for Picanol’s OMNIplus 800 air-jet weaving machine
lowers air consumption and thus reduces energy costs.


Adaptive Relay Valve Drive

Picanol NV, Belgium, provided the following information about its Adaptive Relay Valve Drive,
which is featured on its OMNIplus 800 air-jet weaving machine:

“Adaptive Relay Valve Drive (ARVD) automatically adapts the closing timing of the relay
nozzle valves to the behavior of the filling yarn. Instead of applying one setting for all the
different picks, ARVD applies the best relay valve timing for each individual pick, thus reducing
the overall air consumption.

“At each insertion cycle, the winding timings from the prewinder are compared with a
reference value by the machine’s microprocessor. Since the filling insertion speed varies from one
pick to another, it is not necessary for the relay nozzles to blow for the same amount of time at
each pick. Consequently, the machine adapts the closing timings for the relay nozzle valves
automatically. For a fast pick, the relay nozzle valves do not stay open very long.  … For a
slow pick, they stay open longer. … This is done from the second relay nozzle valve onwards.”

Picanol notes that decreased air consumption reduces energy costs, and reduced blowing on the
filling yarn reduces the number of broken picks. Also, Pick Repair Automation has a higher success
rate because the type of filling stops changes.

staubli
Itema Weaving’s Sulzer Textil™ L5500 air-jet machine features several recent upgrades.


Air-Jet Weaving

Italy-based Itema Weaving has recently upgraded its Sulzer Textil™ L5500 air-jet weaving
machine, suited primarily for applications such as quality apparel and home textile fabrics made
with natural or man-made fibers or blends.

Key benefits of this machine are said to be the fabric quality and low running costs.
According to Itema Weaving, the L5500’s strength is its competitiveness in terms of its capacity to
conveniently weave fabrics  that comply with superior quality standards, while also
maintaining a high degree of efficiency even at top performance levels. The company adds that
“conveniently” also means producing with reduced off-quality rates and reduced air consumption per
meter of fabric, which improves profits. The L5500’s RTC (Real Time Controller) function enables
the machine to adapt to various weaving conditions, thereby obtaining significant air-consumption
savings.

Targeted customers are weavers interested in superior production to enable entrance into new,
highly profitable markets. The L5500 can be adapted to different production requirements. Easy
operation, widest range of application and shortest setting times are key factors.

Recent upgrades in the L5500 technology have increased the machine’s efficiency and
performance. For standard weaving, the maximum speed now is 1,200 revolutions per minute, and the
maximum weaving width is 4,000 millimeters (mm). This is equal to a production capacity in excess
of 2,500-meters-per-minute weft insertion rate.

staubli
Stäubli’s upgraded Safir automatic drawing-in machine can be configured to draw in one or
two warp beams, each having up to eight thread layers.


Drawing-in: An Important Cost Factor

Switzerland-based Stäubli AG reports that automatic drawing-in machines for the weaving
harness have long helped weaving mills around the world stay competitive. Automatically drawn-in
warps are characterized by zero defect and high quality, and they are available as required for
production in a fraction of the time compared with manual drawing-in.

According to Stäubli, the upgraded Safir automatic drawing-in machine offers new
opportunities regarding flexibility, thanks to the refinement of proven system components from the
Delta line combined with established state-of-the-art technologies, particularly the Opal leasing
machine. Since its introduction at ITMA 2007 in Munich, Germany, and after several upgrades, the
machine can be configured to draw in one or two warp beams, each having up to eight thread layers.
A camera system checks the yarn to be drawn in during each cycle and ensures against drawing-in of
double threads or threads of the wrong color.

Stäubli reports there also is flexibility with regard to the weaving harnesses that can be
used, as virtually all heddles used in shaft weaving can be handled freely. Heddle distribution can
be programmed on up to 28 frames. It also is possible to use two different types of drop wires for
the same weaving harness – an application that is especially interesting for terry weaving with
upper beams and varying drop wire weights for the ground threads and pile threads. With virtually
unrestricted application potential, Stäubli says Safir sets new standards in automatic drawing-in.
The machine also features user-friendly ergonomics and convenient operation using a color
touchscreen.

Warp-tying is another cost factor in the weaving mill. Stäubli reports its Magma warp-tying
machine is especially suitable for tying coarse yarns. A patent-pending system that works without
yarn-specific settings enables separation of threads to be tied at the lease, which considerably
simplifies operation and changing from one application to the next. A built-in camera system
monitors the separation of the threads, thus eliminating doubled threads. Magma also can be set
easily to tie double knots, and therefore can tie even very slick yarns reliably, according to the
company.

The Magma warp-tying machine for coarse yarns complements Stäubli’s Topmatic tying machine
line. The machines feature a new, patented separating system that reliably separates threads from
the lease completely without using thread-specific separating elements and without making special
adjustments. Optical sensors check every separated yarn pair before tying, thus preventing a false
double yarn from being tied. The fault can be corrected simply. Depending on yarn material, single
or double knots can be tied, as selected by a simple push of a button. Optimization of the tying
rate is accomplished using the adjustment wheel.

Magma can tie a range of yarns including wool, cotton, linen and other staple yarns, as well
as mono- and multifilaments, polypropylene ribbons, and many other yarn types. The yarn count for
staple fibers ranges from Ne 0.3 to 50 for warps with 1:1 lease. The machine comes equipped with an
optical double-yarn sensor, and single or double knots can be selected easily. The length of knot
ends is variable, with a minimum of 5 mm. The tying frame can be used on all Stäubli type TPF3
tying frames, and easy maintenance is guaranteed, with only regular lubrication needed.

January/February 2010

For Textiles, 2010 Could Be A Busy Year In Washington


W
ith congressional mid-term elections looming later this year, look for increasing
emphasis in Washington to be placed on job creation. Congress and the Obama administration will be
casting a wide net during the coming year to find ways to put Americans back to work. The
job-creating potential of international trade will be one area of particular interest to textile
and apparel manufacturers. Administration trade officials, who rarely mention the impact of
imports, place a good deal of emphasis on the need for export promotion, while members of Congress
stress the need to address both imports and exports – and, in some cases, major trade reform.

For many U.S. manufacturers, one of the most immediate priorities is the extension of
duty-free treatment to a wide range of imported components  that are not produced in this
country. Textile manufacturers have a laundry list of such components that includes such things as
acrylic and rayon yarns, and animal hair and other noncompetitive products. Congress failed to act
on the miscellaneous tariff bill during last year’s session, and, as a result, the existing duty
suspensions expired December 31. In the waning hours of last year’s session of Congress, the bill
was blocked by Sen. Debbie Stabenow, D-Mich., who said the basic purpose of the tariff concession
legislation was being subverted by the inclusion of finished products that are made in this
country. While U.S. textile manufacturers agree in principle with what she was doing, they are
concerned that her action raises the costs of imported components, and that will make their
products less competitive until duties are once again suspended. In view of the overall support for
the tariff concessions, Congress could act on the bill fairly soon.


Trade Preference Agreements

Congress and the Obama administration are expected to look at ways to improve and revise the
many trade preference programs (TPAs) that the United States has with a number of countries. The
House Trade Subcommittee is soliciting comments on its plans to assess the operation, impact and
future course of TPAs. The United States currently has regional TPAs with countries in Central
America, the Caribbean, Africa and Asia; and also with Canada and Mexico. In addition, it has a
General System of Preferences (GSP) that covers 131 countries.

The National Retail Federation (NRF) has proposed a 10-year extension of the GSP special
duty treatment and has recommended for the first time that textiles, apparel and footwear be
included, a move that is opposed by U.S. textile manufacturers. NRF and other importers of textiles
and apparel believe extending or making permanent the GSP authorization would make long-term
planning easier.

A majority of House Democrats, 129, and four Republicans have signed on to legislation
calling for a major review and sweeping changes in both existing and future TPAs. A similar bill is
pending in the Senate. Both bills place emphasis on economic results, enforcement and compliance;
and set out additional criteria for such things as overseas human and labor rights, environmental
considerations, national security and product safety. The legislation would give Congress much more
involvement and oversight in connection with trade agreements by replacing the president’s current
Trade Promotion Authority, known as “fast track,” with a requirement for the administration to
certify to Congress, in advance of any agreement, that a proposed pact meets the mandatory
negotiating objectives in the bill. And it would require periodic performance reports.

The outlook for trade agreements with Colombia and South Korea, negotiated by the Bush
administration and awaiting congressional ratification, remains in doubt. President Barack Obama
has made strong appeals for both to be ratified. Some efforts to resolve problems with the Colombia
pact have been made recently, but they may not have gone far enough yet to satisfy Congress.
Textile manufacturers support the Colombian pact because it has a strict rule of origin and offers
export opportunities for yarns and fabric. Opposition to the South Korean agreement is much
stronger. U.S. textile manufacturers flatly oppose it, as do U.S. automobile and agriculture
interests, which are concerned about lack of market access.


Customs Reform

Chairman Max Baucus, D-Mont., and Ranking Republican Charles Grassley, R-Iowa, of the Senate
Finance Committee have introduced customs reform legislation, which they say is designed to promote
legitimate trade but crack down on illegal shipments into the United States. They contend that U.S.
Customs and Border Protection in recent years has concentrated most of its resources on the
agency’s national security mission at the expense of trade. Their bill calls on Customs to
prioritize customs enforcement and at the same time devote more resources to facilitating
legitimate trade. It provides for creation of two high-level positions whose responsibilities will
be to upgrade enforcement and trade facilitation. The National Council of Textile Organizations,
which for years has been pressing for more resources to be devoted to cracking down on illegal
trade, supports the bill, pointing out that the textile sector attracts more fraud than any other
industrial product sector. NRF, whose members are the largest importers of textiles and apparel,
also supports the legislation, saying it believes the bill “strikes a balance” between the agency’s
trade and homeland security duties.


China Trade Issues

Although the U.S. trade deficit with China remains a major issue, not many people in
Washington or Beijing see much happening here. Leaders of both countries are strongly committed to
avoiding what could be construed as protectionist measures. Members of Congress and lobbyists for
textiles and other import-impacted industries repeatedly point to what they see as China’s currency
manipulation and other illegal subsidies, and they have introduced legislation to address those
issues.

The Obama administration for the most part is opposed to going the legislative route. The
U.S. government has made some use of its trade remedy laws by imposing tariffs on Chinese tires and
steel pipes, and other cases are pending. Lobbyists for textile manufacturers believe their best
course for relief most likely is to use anti-dumping and countervailing duty laws, and they are
gathering data and exploring possibilities in that area of relief.

The Obama administration has taken the position that the best course for dealing with Chinese
trade issues is through diplomatic engagements rather than legislation or other stronger tactics.
The administration believes China has been a strong partner in efforts to overcome the worldwide
economic crisis, and it is not about to pick a fight.


Global Trade Agreements

The Obama administration has announced plans to move forward with a Trans-Pacific Strategic
Economic Partnership Agreement with Australia, Brunei, Chile, New Zealand, Peru, Singapore and
Vietnam. Though discussions are just beginning and any agreement has a long way to go, U.S. textile
manufacturers are up in arms about including Vietnam, which they view as “another China.” They say
Vietnam has a nonmarket economy that manipulates its currency, relies heavily on exports for growth
and has a rising trade deficit with the United States. While admitting Vietnam could be a problem,
U.S. Trade Representative Ron Kirk says he hopes Vietnam could be brought into a “high standard”
agreement.

On another front, leaders of the World Trade Organization are making what may prove to be a
last-gasp effort to revive the Doha Round of trade liberalization negotiations in the coming year.
The U.S. government remains committed to it, but the developing and developed countries remain far
apart, and the outlook for a successful conclusion is anything but bright.


Consumer Product Regulation

Congress seems committed to giving a rejuvenated Consumer Product Safety Commission (CPSC)
additional funds and staffers to crack down on unsafe products, particularly those intended for use
by children. It has authorized $118.2 million for the coming fiscal year – an increase from $105.4
million authorized in 2009 – and has promised annual increases for the next five years. Most of the
CPSC’s additional resources will be directed at toys and other products used by children, but it is
possible the commission later this year could act on a pending national upholstered furniture
flammability standard. In addition, the commission could continue the process for writing a
flammability standard for bedding that has been under consideration for some time.



January/February 2010

Textile Consulting Firms Join Forces

Two veteran textile industry consultants — Hardy B. Poole, Engineered Solutions, PLLC,
Charlottesville, Va.; and Clyde Canter, Rocan, Inc., Greensboro, N.C. — have joined forces to
offer client services in a wide range of product development and other technical areas. Poole has
some 40 years of experience in the fiber, textile, apparel and military procurement areas. He
served for 27 years as vice-president of product services with the American Textile Manufacturers
Institute and as a reserve officer at the U.S. Army Natick Soldier Systems Center. Canter was a
senior technical executive with Cone Mills before forming his own textile and apparel research and
consulting services firm in 1989.  He has been a consultant and expert witness in product
liability lawsuits involving flammability and has advised clients on fabric performance-related
research.

Poole and Canter will offer guidance and services on product performance, such as
flammability, as well as in areas that affect environmental and workplace requirements.

January/February 2010

Marves Industries To Open Facility In Hildebran, NC

Marves Industries — a manufacturer of textile insulators and cushioning for bedding and furniture
— will open a plant in Hildebran, N.C., investing $1.75 million and creating 66 jobs. Marves will
move into a former Bauer Industries facility, using existing equipment to produce needlepunched and
high-loft nonwovens from staple man-made, natural, reclaimed and mixed fibers. Marves — a
collaboration between Mexico-based Industrias Marves S.A. de C.V. and textile veterans Elias Gomez
and Jeff Myatt, who will oversee operations — will offer high-loft products primarily in the
Southeast, and needlepunched nonwovens nationwide. It also has capabilities to laminate, coat,
diecut and assemble roll goods and components.

January/February 2010

Lenzing To Expand European, Asian Sites

Cellulosic fiber producer Lenzing Group, Austria, will invest 120 million euros in 2010 to expand
production sites in Europe and Asia.

Annual capacity will be increased to 260,000 tons and an eco-friendly ozone bleaching
facility for pulp production will be added to the Lenzing, Austria, plant. The company will
increase Tencel® capacity at Heiligenkreuz, Austria, from 10,000 tons to 60,000 tons per year. The
Grimsby, England, site will be renovated to manufacture a special Tencel fiber. Improved production
efficiencies at Indonesia-based subsidiary PT South Pacific Viscose, which has just increased
capacity by 60,000 tons to 220,000 tons, will enable a further capacity increase to 238,000 tons.

January/February 2010

KDCL Acquires DyStar

DyStar Textilfarben GmbH, Germany, which filed for insolvency in September 2009, is selling the
company and three of its manufacturing sites to Kiri Dyes & Chemicals Ltd. (KDCL), India, a
producer of reactive dyes and supplier of reactive, acid and direct dyes as well as dyeing
intermediates. KDCL will assume operations at the DyStar Group in Frankfurt, its production sites
in Leverkusen, Ludwigshafen and Brünsbuttel, and 36 subsidiaries worldwide.

DyStar’s manufacturing plant in Geretsried, Germany, is not included in the sale. The company
is exploring other alternatives, including potential investments, for that site.

It is hoped that some 800 jobs in Germany and another 2,000 globally will be saved after the
takeover.

January/February 2010

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