ACIMIT Reports Increased 2007 Italian Textile Machinery Production

The Association of Italian Textile Machinery Manufacturers (ACIMIT), Milan, has released statistics
showing that textile machinery production in 2007, valued at some 2.8 billion euros, was 3 percent
higher than 2006 production — continuing a recovery that was underway in 2006. Machinery exports
rose to 2.1 billion euros in 2007, representing 77 percent of total production and a 2-percent gain
over year-earlier exports.

ACIMIT attributed the production increase primarily to a recovery in the Italian market,
which grew by 8 percent in 2007. Italian textile producers also increased imports of machinery by
10 percent to more than 630 million euros for the year.

The primary export markets for Italian textile machinery are China, with shipments totaling
360 million euros — 1 percent lower than 2006 shipments; Turkey, 202 million euros — a 14-percent
increase; and India, 135 million euros — down 26 percent. Germany, France and Switzerland showed a
recovery as export markets; and the Brazilian and Iranian markets also grew.

“Of course, these are encouraging signs, but the overall picture is a lot more complex,” said
ACIMIT President Paolo Banfi, who noted “widespread difficulties” in some sectors and a slowing
market following last year’s ITMA in Munich, Germany.

“Obviously, the global economic crisis is weighing heavily on production trends,” Banfi
continued. “In many markets, a feeling of uncertainty for the future prevails. This in turn delays
decisions regarding the remodernization of existing manufacturing facilities.”

Banfi also said the strength of the euro against the US dollar is cause for concern because
of the Italian textile machinery industry’s overwhelming dependence on exports. “At the euro’s
current levels, it will be difficult to remain competitive for very much longer internationally,
despite the fact that the quality of our Made in Italy products remains undisputed and is highly
regarded by all our customers. What’s needed then, is a clear commitment by monetary authorities in
support of the demands of many European manufacturers, implementing the necessary course of action
for slowing the rise of Europe’s currency.”

May 13, 2008

The Rupp Report: It’s The People, Not The Product

The machine model XYZ Mark V, flexibility, quality, lean production — just a few common words in
today’s world of any manufacturing industry. However, every product is full of quality and
flexibility, and is easy to handle. In modern, highly competitive markets, these properties are
nothing special, but prerequisites for a successful product or company.

Differentiate The Message

So, how do you differentiate the message to your customer on any level, that your product is
special and that your company is the right one to deal with? Go personally and talk face-to-face
with your customers. Show them your face and not drives or screws. It’s the services you deliver to
your customers, and service means people. Tell them who you are and what you stand for.

I Don’t Like The Person

We all know this situation: One decides to buy a product — for example, a car. After browsing
endlessly through all the catalogues, the decision is made. Full of expectations, you go to the
dealer to meet the sales people. It takes no more than one minute to realize the salesperson is
definitely not someone you like — you’re not on the same level of communication. What a jerk, you
think. Odds are, in this situation, most of you will not buy the car at this dealership. You leave
and go to look for your dream car elsewhere. Again it’s the people, not the product, that make the
difference.

Société Anonyme

Recently, I’ve read an interesting research report that confirms even scientifically the
differentiation between people and product. The report says that communication with faces instead
of products have more than a double or even triple impact on the recipient of the message. In
French, an incorporated company is called a Société Anonyme, which means anonymous society. This is
the perfect description for an impersonal relationship. But who wants to deal with an anonymous or
even nameless company?

I don’t like the modern term human resources at all — I prefer human relations. How can
people be a resource? Ongoing success in any sector of the industry is based on trust and
reliability. Just take a look at the global financial situation. How do you want to sell trust in a
product? Again, long-lasting relations and, therefore, trust are a matter of people, not machines.

Meet The People, Not The Product

And where is the link to your job? Very close, indeed. The next global occasion to cultivate
human relations is at ITMA Asia + CITME in Shanghai. You have no time to fail. Is your sales staff
aware of all the obstacles? Don’t let your customer wait for more than a hello. Your competitor is
waiting next door to accommodate your customer in a perfect way. Again, it’s the people, not the
product. With this in mind, see you soon in Shanghai.

May 13, 2008

Rieter Elects Stoller Chairman Of The Board

At its annual meeting last week, Switzerland-based Rieter Holding Ltd. shareholders elected Erwin
Stoller chairman of the Board of Directors, to succeed Kurt Feller, who has resigned upon reaching
retirement age.

Feller served as chairman of the Board of Directors from 2000 until his retirement. He began
his career at Rieter in 1977, first serving in the Finance Department at Rieter Machine Works Ltd.,
where he was named finance director and a member of the executive management in 1982. In 1984, he
was appointed to the Group Executive Committee; and in 1989, he was named CEO, a position he held
until 2000. He joined the Board of Directors in 1994.

Stoller joined Rieter in 1978. He was a member of the Group Executive Committee from 1992
until the end of 2007; and served as head of the Spun Yarn Systems business group from 1992 until
1996, head of the Textile Systems Division from 1996 until 2002, and head of the Automotive Systems
Division from 2002 until the end of 2007.

Rieter shareholders also re-elected Dr. Rainer Hahn to the six-member board for another
three-year term, approved a dividend payment of 15 Swiss francs per share and approved a capital
reduction through the destruction of 167,800 registered shares that had been repurchased.

In related news, Switzerland-based Forbo Holding AG informed Rieter that it has increased its
direct and indirect holdings in the company to 223,000 registered shares, equal to 5.01 percent of
total voting rights.

May 13, 2008

ITMA Asia, CITME Team Up


T
 he first edition of ITMA Asia + CITME, combining two previously independently produced
Asian textile machinery exhibitions, will open its doors to the global textile industry July 27-31
at the Shanghai New International Expo Centre (SNIEC), in Shanghai’s Pudong district.

ITMA Asia + CITME 2008 brings together the Asia International Textile Machinery Exhibition
(ITMA Asia) — a Singapore-based quadrennial show inaugurated in 2001 by the European Committee of
Textile Machinery Manufacturers (CEMATEX) as an Asian counterpart to the original Europe-based ITMA
— and the China International Textile Machinery Exhibition (CITME) — a biennial event focused
largely on the Chinese market, held in Beijing since 1988 and owned and organized by the China
Textile Machinery Association (CTMA); Sub Council of Textile Industry, China Council for the
Promotion of International Trade (CCPIT-TEX); and China International Exhibition Center Group Corp.
(CIEC). The combined show — organized by Beijing Textile Machinery International Exhibition Co.
Ltd. (BJITME) and co-organized by Singapore-based MP International Pte. Ltd., with backing from
CEMATEX and CTMA in partnership with the Japan Textile Machinery Association (JTMA) — will be held
biennially in China in even-numbered years.

According to BJITME, ITMA Asia + CITME 2008 will be the largest textile machinery show ever
produced in China. Originally planned to fill nine halls encompassing 100,000 square meters (m2) of
exhibit space at SNIEC, the event quickly sold out its available exhibition space, and now — with
an additional two halls being completed to provide more than 26,500 additional m2 of space — space
is again sold out, show organizers report. More than 1,200 exhibitors from 27 countries and regions
will present their products and services to a projected 100,000 trade visitors from around the
world at ITMA Asia + CITME 2008. The projected visitor count exceeds the combined total for ITMA
Asia 2005 and CITME 2006 by more than 30,000 people — suggesting that this combined show will
provide the exhibitors with optimal exposure to their target markets, not only in China, but also
in the broader Asian and even global marketplace.

sniec
The Shanghai New International Expo Centre will host the first ITMA Asia + CITME.


Why Shanghai?

Although ITMA Asia + CITME 2008 is targeting the entire Asian marketplace, the Chinese
textile industry, with its rapid growth and one-third share of global textile production capacity,
is one of the largest consumers of textile machinery, especially European textile machinery.
According to CTMA, in 2006, China imported textile machinery valued at more than $4 billion — 19
percent greater than such imports in 2005. First-half 2007 imports totaled $3.1 billion, nearly 33
percent greater than the comparable period in 2006. Shanghai sits at the hub of the country’s
textile industry, with more than half of its textile mills and more than 60 percent of its textile
machinery manufacturers located near the city and its neighboring provinces.

China’s prominence as a major market for textile machinery is a key factor in the decision
by CEMATEX to move its exhibition from Singapore to China, according to Edward Roberts, president,
CEMATEX. “The date in 2008 has been chosen in order to enable us to react as quickly as possible to
the changing requirements of the Asian market,” Roberts said. “We have decided to work on this
event with CTMA … because they share our own objective of offering our exhibitors and their
customers high-quality cost-effective exhibitions, and we are delighted that they will be our
partner in these combined ITMA Asia + CITME shows.”

Gao Yong, president, CTMA, notes that because ITMA Asia and CITME are owned by textile
machinery associations, they are more effective venues than other textile machinery shows that have
been launched in the region in terms of addressing the long-term development of the Asian textile
industry.

“ITMA Asia and CITME … are organized by the textile industry for the textile industry,” Gao
said. “We understand the needs of the industry, and the principal aim therefore is to offer a
high-quality and relevant show for exhibitors and customers alike, and finally to strive towards
the upgrade of the whole industry’s science and technology level.”

As the largest contingent of any single country, Chinese exhibitors have reserved more than
33,000 m2 of net space; but exhibitors from CEMATEX countries Belgium, France, Germany, Italy, the
Netherlands, Spain, Sweden, Switzerland and the United Kingdom will also have a large presence at
the show.

“European machinery manufacturers are acknowledged as the major players in driving technical
innovation in textile production methods,” said Maria Avery, secretary general, CEMATEX. “Their
depth of know-how, commitment to R&D and attention to quality in both equipment and end-product
are well-deserved, and these characteristics make their exhibits the star attractions at any major
show.”

CEMATEX trade association members and exhibitors are enthusiastic about participating in the
new combined show.

“ITMA is the world’s largest textile machinery show and a truly unique opportunity for
visitors to examine and compare equipment from all their potential suppliers,” said Johann Philipp
Dilo, chairman, German Engineering Federation (VDMA) Textile Machinery Association and CEO, Dilo
Group. “This is very rare in the world of exhibitions. So we welcome the news of ITMA Asia’s
combined show with CITME, and also the frequency of every two years in China — this gives us a show
which serves all our needs in this important market — and with the right timing.”

“The last ITMA Asia held in Singapore in 2005 was a big success for us, and the business
generated was very encouraging,” said Jan Laga, vice president of Belgium-based Picanol. “… China
is one of our key markets and … the show will be held in the city of Shanghai, close to many of the
textile regions,” he added, noting the schedule allows the company to concentrate on one biennial
show in China that does not fall in the same year as the quadrennial ITMA in Europe.

Among CEMATEX countries, Germany — which in 2007 shipped more than half of its textile
machinery exports to Asia, with China receiving more than half of that share — leads the pack, with
more than 9,100 m2 of net space reserved. Germany is followed by Italy, with more than 7,200 m2;
and Switzerland, with 5,100 m2 of space.

Japanese exhibitors, members of JTMA, have reserved 3,000 m2 of net space in the exhibit
halls.

“We can easily imagine that the most well-known textile machinery show in China (CITME)
operated by the ITMA standard quality will be a great success in 2008,” said Tetsuro Toyota,
chairman, JTMA. “We expect to see such synergy with our own eyes, and we trust that this
integration shall be beneficial for both customers and textile machine manufacturers. We look
forward to exhibiting in 2008.”

Other countries and regions represented among the show’s exhibitors include Australia,
Austria, Canada, Denmark, Egypt, Hong Kong, India, Israel, Korea, Liechtenstein, Luxembourg,
Malaysia, Singapore, Slovakia, Taiwan, Thailand, Turkey and the United States.

itmaasia
More than 1,200 exhibitors organized in 14 categories will show their products and services
to 100,000 visitors at ITMA Asia + CITME.


Product Categories

Follow ITMA, ITMA Asia Custom

The exhibition area will be organized into 14 product categories according to ITMA and ITMA
Asia custom:

•    spinning preparation, man-made fiber production, spinning and auxiliary
machinery, and accessories;

•    winding, texturing, twisting and auxiliary machinery, and accessories;

•    nonwovens and felting web-formation, bonding, finishing and auxiliary
machinery, and accessories;

•    weaving preparatory, weaving, tufting and auxiliary machinery, and
accessories;

•    knitting, hosiery and auxiliary machinery, and accessories;

•    braiding and embroidery machinery, and accessories;

•    washing, bleaching, dyeing, printing, drying, finishing, cutting,
rolling, folding and auxiliary machinery, and accessories;

•    making-up machinery and accessories;

•    laboratory testing and measuring equipment, and accessories;

•    transport, handling, storing and packing equipment, and accessories;

•    recycling, waste-reduction and pollution-prevention equipment, and
accessories;

•    design, data-monitoring, processing and integrated-production software;

•    associated equipment and products for the textile and making-up
industries; and

•    services for the textile and making-up industries.

Yarn production and processing exhibitors will comprise the largest contingent by product
category, taking up most of five halls and approximately 30,000 m2 of net space, with nonwovens
exhibitors filling the balance of one hall. Dyeing, printing and finishing machinery will occupy
more than 18,000 m2 in two halls and part of a third; with making-up, dyestuffs and chemicals,
testing, and software filling the remaining space in the third hall. Knitting and hosiery machinery
and weaving machinery each will fill one hall and share a third, with each category covering
approximately 11,000 m2.


IPR Protection

The security of intellectual property is an issue that has received much attention as the
Chinese textile industry has become more and more dominant in the global picture. ITMA Asia + CITME
organizers are assuring exhibitors that “stringent controls” will be implemented to protect
intellectual property rights (IPR) at the show. An onsite IPR Protection Office, set up in
collaboration with the local government, will work with both exhibitors and visitors to prevent IPR
violations, and will be prepared to take emergency measures, for example, closing an offending
exhibitor’s booth, if IPR infringements are proved.

itmafloorplan


Promotional Efforts

Industry professionals interested in attending ITMA Asia + CITME 2008 may pre-register
online by following the Visitors link to online registration at www.itmaasia.com for a 40-percent
savings compared with the cost of registering onsite.

Based on online registrations and group registrations from international textile
organizations to date, BJITME expects strong attendance by textile professionals throughout Asia,
with a very large number of visitors from the host country. Promotional activities in the form of
road shows are also underway to draw more visitors from key countries. At least 15 state and local
textile associations from India will send delegations to the show; and other delegations will come
from Bangladesh, Indonesia, Pakistan, Vietnam, Turkmenistan and Egypt. BJITME also plans to send
road shows to key Chinese textile manufacturing centers.

“We are confident that we will see a very significant level of visitors from all the major
Asian countries, and we are keen to develop this aspect of the exhibition to maximize the benefits
of the new combined-show concept for both exhibitors and visitors,” Avery said.

For more information about ITMA Asia + CITME 2008, contact Maria Avery
info@cematex.com; Zhao Xiaogang
zhaoxg@ctma.net;
www.itmaasia.com;
www.citme.com.cn.



May/June 2008

Changing Trade Patterns


T
 extile and apparel import trends will bear especially close watching this year. Reason:
the sizable price increases now being posted by Chinese mills and factories – increases that are
forcing US buyers to take a hard look at other overseas sources.

One of the big factors behind the new hikes has been the accelerating climb in Beijing’s
currency. In the first quarter of 2008, the yuan jumped 4.1 percent vis-à-vis the US dollar – the
biggest boost since the de facto peg to the dollar ended in 2005. And the betting is that these
gains will continue, with overall 2008 yuan appreciation estimated at anywhere from 10 to 12
percent. Hikes of this magnitude will almost certainly translate into higher US procurement costs.

Moreover, as pointed out in earlier columns, there are a lot of other factors suggesting
higher Chinese quotes. These would include rapidly rising raw material tabs, a new Beijing labor
law that will mean significantly higher payroll costs, reductions in China’s preferential policies
for exporters, and rising tabs for mandated pollution control.

All the above not only are forcing Chinese price hikes, but also are leading to a major
reappraisal of global sourcing strategies. The American Chamber of Commerce in Shanghai finds that
more than half of the foreign manufacturers in China now believe the mainland is losing its
competitive edge to nations like Vietnam, Cambodia, Bangladesh, Pakistan and India. Even more
significant, some 20 percent of firms surveyed, including many textile and apparel outfits, say
they’re now considering new non-Chinese factory sources.

mj08bfpriceindexes


Measuring The Production Decline


 

Uncle Sam’s Federal Reserve Board has just revised textile industry output figures, with
levels now based on updated Census information. And there’s a big change: Decreases over recent
years are significantly steeper than previously reported. The latest index readings suggest overall
output is now running some 25 percent under levels prevailing in 2002 – the index base year. That’s
five percentage points more than indicated by earlier estimates.

Equally important, the new data find major differences in how the two major textile
subsectors – basic textiles and textile products – have been faring. Specifically, the biggest
slippage over this extended period is centered in basic textiles – down a sharp 34 percent. On the
other hand, more highly fabricated textile products have fared much better, dropping only about 12
percent over the same time span.

Because of these big differences,

Textile World
 has decided to change the Textile Barometers table and henceforth will include both
subsectors rather than the single all-textile number previously reported. It should also be noted
that the industry’s overall mill utilization rate has been revised downward from the pre-revised
70-plus level to a new 67.4-percent reading.


A Few Bright Spots

Despite the above disappointing numbers, the industry is showing signs it will probably ride
out the current downturn in fairly good shape. The latest government textile earnings figures for
the fourth quarter 2007 indicate no real big drop in either after-tax earnings or margins. Indeed,
the numbers for 2007 as a whole are not all that bad. On the after-tax profit score, the total of
$1.325 billion, while down from the previous two years, is actually above levels prevailing through
the 1998-2004 period. The same is true when it comes to profit margins.

Couple all this with a cautiously optimistic earnings forecast for the next two years, and
it’s all a pretty good indication the domestic textile industry is alive and well. Also
encouraging: Textile spending for new plants and equipment is holding up surprisingly well. Recent
estimates by the National Council of Textile Organizations indicate capital outlays over 2007 came
close to $1.4 billion – actually 2 percent or so above the 2006 level. This willingness to bet on
better days ahead is also suggested by the fact that industry executives have not cut textile
capacity by nearly as much as might have been expected on the basis of recent sharp demand
declines.



May/June 2008

A&E, Vardhman Form Joint Venture

American & Efird Inc. (A&E), a Mount Holly, N.C.-based manufacturer of yarn and thread, has
signed a joint venture agreement with India-based Vardhman Textiles Ltd. to manufacture, distribute
and sell sewing thread for Indian and export consumer and industrial markets. Under the agreement,
A&E will own 35 percent of the venture upon closing, with assumption of an additional 14
percent over the next five years. Vardhman will contribute its sewing thread operations to the
northern India-based joint venture, while A&E will contribute cash.

As the second-largest thread company in India, Vardhman generated sales totaling some $69
million in fiscal year 2007. The company has held a license to produce and sell A&E products in
India since 2001. It also produces and markets yarns, fabrics, fiber and alloy steel, and had total
consolidated sales of some $476 million in 2007.

“This strategic joint venture leverages the strengths of both companies to expand thread
sales in India’s rapidly growing sewn products market and further expands A&E’s presence in
this important region of Asia,” said Thomas W. Dickson, chairman of the board, president and CEO,
Ruddick Corp., A&E’s parent company.

May/June 2008

Congress And Bush Clash On Trade


A
 s the Bush administration continues to extol the virtues of its free trade policies, it
has become increasingly clear that Congress is concerned about the direction and results of those
policies and, as a result, the administration’s trade agenda faces some rough sledding. The House
leadership flexed its muscles when it voted to rewrite the rules for considering the US/Colombia
Free Trade Agreement (FTA) and set the agreement aside in order to address what House Speaker Nancy
Pelosi, D-Calif., said will “put the economic concerns of the American people first.” She made it
clear that the president cannot expect to have free reign in the area of international trade in
these times of economic uncertainty.


In addition, the senior Democratic members of the House Ways and Means Committee sent
President Bush a pointed letter saying the United States cannot tolerate a continuation of what
they call a “historically high and unsustainable trade deficit.” They said the administration needs
to place less emphasis on promoting FTAs and pay more attention to enforcing existing agreements
and be more attuned to the impact the administration’s trade policies are having on US jobs. On the
Senate side, Finance Committee Chairman Max Baucus, D-Mont., has said action on ratification of
pending FTAs will be held up until something is done about legislation expanding trade adjustment
assistance for workers who lose their jobs to import competition.


Administration’s Trade Record

The comments were triggered after the administration sent Congress its National Trade
Estimate for 2008, which painted an optimistic picture of what the administration has accomplished
in the past seven years and what lies ahead in the remaining year of George W. Bush’s term in
office. US Trade Representative Susan C. Schwab said the report “lays out the successes and ongoing
challenges to free and open trade for American goods and services.”

In the area of accomplishments, the report cites FTAs reached this past year with Peru,
Colombia, South Korea and Panama. It also says the administration was successful in cases launched
against China before the World Trade Organization (WTO) that were designed to protect intellectual
property rights. Also on the plus side, the report says the United States has succeeded in getting
China to remove some prohibited subsidies. As another important achievement, the report cited a
multinational anti-counterfeiting agreement with key trading partners to set a higher international
standard for attacking counterfeiting and trademark violations. Looking at continuing efforts, the
report cited the importance of the US role in promoting the Doha Round of trade liberalization
negotiations, which remains “a top US trade priority.” The administration believes a multilateral
agreement in the WTO offers the potential to generate economic growth in the United States and
around the world and to help lift millions of people out of poverty.


What The Democrats Want

However, the Democratic leadership does not seem particularly impressed by the
administration’s litany of accomplishments and what it sees down the road. Pointing out that the US
trade deficit increased by 80 percent between 2001 and 2007, the congressmen said the
administration has “mismanaged America’s trade policy,” and they urged the administration to take
some “long overdue steps to remedy the situation.” They called for immediate consultations with the
major trading nations such as Canada, China, the European Union, Japan, Mexico and Korea, with a
goal of reducing various trade barriers standing in the way of US exports of manufactured goods,
services and farm products. While praising the successful WTO cases involving China, they cited
additional actions that need to be taken.

The letter concluded by saying, “Without vigorous enforcement, trade agreements do not
benefit US companies, workers, farmers or consumers, and Americans deserve a trade policy that
holds trading partners to the bargain negotiated and produces real benefits for the United States.”

The Democratic leadership in both the House and the Senate for all intents and purposes has
blocked consideration of the US-Colombia FTA and any others for this year, and possibly longer,
because they feel President Bush had not properly consulted the congressional leadership and has
been unable to address issues raised by organized labor. They are saying the administration’s
thrust toward free trade is not going over very well with them and they have some higher
priorities. Further action on any FTAs could very likely be held off until the new administration
takes over. The Democratic presidential candidates want some “time put” on trade agreements in
order to ensure that they are benefiting working Americans, and the economy in general. The
presumptive Republican candidate, Sen. John McCain strongly supports free trade.

 


Trade Adjustment Assistance

As the debate over international trade issues heats up, and the Democratic leadership of
Congress asserts a more active role, the outlook for enactment of legislation expanding the Trade
Adjustment Assistance Program (TAA) is improving. TAA legislation has been promoted for some time
by textile-state members of Congress in view of the industry’s import-related job losses, but the
administration has been cool to it, and as a result, the legislation has not gone anywhere. The
effort got a shot in the arm when House Speaker Pelosi and Senate Finance Committee Chairman Baucus
said they will hold action on FTAs hostage until legislation expanding TAA is enacted. The measures
pending in Congress would expand TAA eligibility to workers whose jobs move to a nation that does
not have a preferential trade agreement with the United States. It also would speed up the
timetable for approval of applications for assistance and substantially increase funding for the
program.


Consumer Agency

More Involved In Textile Issues

As Congress is intent on expanding the authority and funding for the Consumer Product Safety
Commission (CPSC), the agency is likely to become more involved in some textile regulations.
Following the flap last year over lead-tainted toys and other unsafe consumer products, Congress
has been throwing money at the agency and providing it with new tools to protect consumer safety.
After years of budget cuts, Congress last year added $17 million to the agency’s $63 million annual
budget, and more is on the way this year. This means CPSC will be able to significantly increase
the number of its technicians, statisticians, legal experts and field representatives. A proposed
new public-searchable database for consumer complaints is strongly opposed by many manufacturing
industries and CPSC Chairman Nancy Nord, who believes the database requests could overwhelm the
agency. At the present time such data are available only through Freedom of Information Act
requests.

All of this can be both good and bad news for textile manufacturers. On the plus side,
expanded regulations and more resources for policing compliance would apply to imports as well as
domestic products, and US manufacturers have frequently complained that they are at a competitive
disadvantage when imports do not meet US standards. CPSC already has announced new rules covering
the flammability of apparel, something the textile industry supports, because it will enhance
consumer safety, and the new techniques for testing are safer for textile-mill technicians.

CPSC also has published a proposed furniture-fabric flammability standard that is not going
over very well with textile and furniture manufacturers and fire marshals. The CPSC proposal, as
currently written, could have an impact on the cost, comfort and style of upholstered furniture.
And, in another area of concern to textile manufacturers, Congress is likely to fund a study of the
possible dangers of formaldehyde in textile and apparel products.

May/June 2008

Sun Capital Affiliate Acquires Frontier Spinning Mills

An affiliate of Boca Raton, Fla.-based private investment firm Sun Capital Partners Inc. has
acquired Sanford, N.C.-based Frontier Spinning Mills Inc., a spinner of cotton and
polyester/cotton-blend yarns used in knit and woven apparel and home furnishings.

Frontier — which has over the last two years acquired Atlanta-based Swift Galey’s denim
spinning operation, merged with Cheraw, S.C.-based Cheraw Yarn Mills and begun a $20 million
expansion at one of its mills in Sanford; and which serves a global customer base — expects the
investment by Sun Capital will enable it to follow its expansion strategy, according to George R.
Perkins Jr., CEO and chairman, Frontier.

“We are pleased to partner with an affiliate of Sun Capital, a financial sponsor with
substantial operating resources and expertise in the textile and manufacturing sectors,” Perkins
said. “Frontier has enjoyed long-standing relationships with its very valued customers, and now,
with an equity sponsor, we will be able to better execute on our strategic plans to expand our
geographic footprint and add value to our stakeholders.”

May/June 2008

United States Invokes Safeguards On Honduran Sock Imports

In a move that was sharply criticized by importers of textiles and apparel, the US Department of
Commerce (DOC) has invoked a safeguard mechanism on imports of cotton socks from Honduras. The move
will permit the United States to place a 5-percent tariff from now until the end of this year. The
safeguard tariffs will expire at the same time as the current quota on Chinese cotton socks.

Commerce Assistant Secretary of Textiles and Apparel Matt Priest said the action will give
US manufacturers time to adjust to increased import competition from its Central American trading
partners that participate in the Central America-Dominican Republic Free Trade Agreement. Priest
said US manufacturers have a long history of coproduction with Honduras, and that approximately
half of the socks imported from Honduras were knit in the United States prior to finishing and
packaging in Honduras. Honduras is the second-largest supplier of socks to the United States,
behind Pakistan but ahead of China.


Laura Jones, executive director of the US Association of Importers of Textiles and Apparel,
blasted the DOC’s action, saying it will do nothing to help US textile manufacturers. “Safeguards
are a dangerous mechanism, especially in these regional arrangements,” Jones said. “It is
tantamount to shooting yourself in the foot, especially when the US is the one supplying the yarns
used to make the targeted products.” She said Honduran manufacturers are not threatening the United
States and that Pakistan and China are the “real winners.”

She warned that importers of textiles and apparel need “certainty” in their sourcing, and
that actions such as safeguards in connection with a regional FTA could encourage importers to seek
products elsewhere in countries that would not use US yarn.



May 6, 2008

Weave Corp’s Greenweave™ Fabric Gains MBDC’s Cradle To CradleSM Certification

Hackensack, N.J.-based upholstery and home decorating fabric manufacturer Weave Corp.’s Greenweave™
Post Consumer Polyester contract and residential uphostery fabric has received silver Cradle to
Cradle
SM certification from McDonough Braungart Design Chemistry LLC (MBDC), a
Charlottesville, Va.-based sustainable design and product development consultancy.

Under the Cradle to Cradle certification program, products are evaluated according to
established standards for environmental and human health as well as recyclability. Certification
levels include basic, silver, gold and platinum — with each successive level representing improved
compliance over the previous level in terms of achieving closed-loop circulation of materials, zero
use of harmful materials, use of renewable energy sources and responsible use of water in
manufacturing, among other criteria.

Weave Corp.’s Greenweave Post Consumer Polyester fabric — made using wind power, clean water
and safe dyes containing no heavy metals —  are woven with yarns made from 100-percent
post-consumer polyester from soda and water bottles and are themselves also 100-percent recyclable.

The Greenweave fabric line also includes 100-percent biodegradable fabrics made with organic
cotton, bamboo, linen, hemp and silk fibers.

May 6, 2008

1...2,1752,1762,177...2,532Page 2,176 of 2,532

Sponsors

Breaking News

Load more

Digital Issue

2025 Quarterly Issue Number II

View Latest Digital Issue

FEATURED ARTICLES

© Copyright 2017 Textile Industries Media Group, LLC.