Senate Committee Approves Peru FTA

The Senate Finance Committee, by a
vote of 18-3, has approved a free trade agreement (FTA) with Peru, paving the way for ratification
this year of the least controversial of four FTAs pending before Congress. The Peru FTA has the
general support of US textile manufacturers because it contains what they believe is a favorable
country-of-origin rule, and it provides opportunities for US yarn and fabric to be used in apparel
imports that will enjoy the duty-free treatment of the FTA. While importers of textiles and apparel
do not like strict country-of-origin rules, they are not likely to oppose the Peru pact.

On the House side, the Peru agreement has received the strong endorsement of Ways and Means
Committee Chairman Charles Rangel, D-N.Y., who visited Peru during the congressional summer recess
and received assurance from President Alan Garcia and other Peruvian government officials that they
would comply with congressional demands for fair labor practices and environmental protection.

Finance Committee Chairman Max Baucus, D-Mont., praised the action of his committee, saying:
“ American workers and businesses deserve to know they’re on a level playing field with our trading
partners, and the stronger labor and environmental provisions now in the Peru Free Trade Agreement
strike a better balance. This solid vote will allow Congress to complete a trade agreement with
Peru that is mutually beneficial to our countries.”

US Trade Representative Susan C. Schwab also praised the Senate committee action and said
the bipartisan support has put the Bush administration and Congress on a path for consideration of
all four of the pending FTAs.

While that may be the case where the Peru and Panama FTAs are concerned, FTAs with Colombia
and South Korea still face considerable opposition. Congress is concerned about some human rights
and labor problems in Colombia, and there is widespread concern about the South Korean pact among
US farmers, automakers and textile manufacturers. The chances of their being enacted this year are
very slim

Schwab has attempted to counter these concerns by referring to a just-released US
International Trade Commission (ITC) report that says US exports and gross domestic product will be
expanded as a result of the South Korean (KORUS) FTA. She says the ITC report “reinforces the fact
that the KORUS FTA is the most commercially significant free trade agreement the United States has
concluded in over 15 years.”

The ITC report is required by Congress in order to assess the likely impact of trade
agreements on the US economy as a whole and on specific industry sectors as well as the interests
of US consumers.



September 25, 2007

The Rupp Report: ITMA 2007 Best Show Ever

On September 20, ITMA 2007 closed its
doors in Munich. Rarely, if ever, are so many things perfect like they were at this 15th ITMA. In
total, 1,451 companies from 38 countries – in displays covering 102,000 square meters of exhibition
space – presented their latest developments and technical innovations for the entire textile chain
to visitors and competitors.

Big Success

The globalization of the textile industry was impressively reflected at ITMA 2007. The
exhibition of textile machinery, held September 13-20, attracted 118,000 trade visitors from 149
countries to the New Munich Trade Fair Centre. Forty-five percent of the visitors were first time
ITMA attendees. Never before has ITMA attracted visitors from so many different countries.

The top 10 visitor countries were Germany, Italy, India, Turkey, Brazil, France,
Switzerland, Spain, Iran and Belgium. The interest from Central and South America also was
particularly strong — more than 4,500 trade visitors came from Brazil, more than 2,000 from
Argentina and more than 1,500 from Mexico. In total, ITMA 2007 attracted approximately 12,000
visitors from Central and South America.

More than 95,000 trade visitors came from abroad, representing more than 80 percent of the
visitor total. “This superb result for ITMA 2007 is a reflection of the excellent cooperation
between CEMATEX, VDMA and Messe München, as an international trade-fair organizer with a worldwide
sales network,” said Johann Philipp Dilo, managing director, Dilo Maschinensystem GmbH, Germany,
and VDMA president.

High Quality Standard Of Visitors

The record number of visitors is not the most pleasing point about the show. Much more
important, according to exhibitors interviewed by

Textile World
, is that the visitors were of extremely high quality and were from almost all important
textile markets of the world. An exhibitor survey conducted by the show organizers provided
evidence of the same results. More than 86 percent of the exhibitors mentioned the international
scope as “good” to “excellent”; more than 88 percent gave the same rating to the quality of
visitors.

Five Hundred Visits A Day

One of the biggest exhibitors mentioned it had some 4,000 visits — technical discussions
with concrete requests — during the show. This is 500 conversations per day. It was mentioned in
many

TW
interviews that these conversations often took place with the owner and the technical
director of the customer. This finally creates a meaningful conversation about product-oriented
projects, which is quite new to the traditional textile industry — but is common sense in the
technical textiles business.

Heinrich Trützschler, managing director of Trützschler GmbH & Co. KG
Textilmaschinenfabrik, and chairman of the ITMA Committee, said: “ITMA is the leading trade fair
for textile machinery manufacturers. We have found that at this fair, visitor quality is really
superb, from all over the world. And we get to talk to some really top people here, whom you rarely
get to see. It all went extremely smoothly.”

Challenge For Barcelona

In the last Rupp Report, the question was asked if CEMATEX members will unite to support an
ITMA 2011 in Barcelona, or will the disagreement continue and limit the ability for 2011 to be the
next strong ITMA in Europe? After interviewing many exhibitors in Munich, this question is not even
an issue anymore. The decision was made, and exhibitors are willing to make the best of it. And —
but this is common sense — quantity does not always mean quality. Now it’s up to the organizers of
ITMA 2011 in Barcelona to maintain the level of success experienced in Munich. Servus Munich,
Buonas Dias, Barcelona.



September 25, 2007

Dow Announces Price Increases

Effective October 1, The Dow Chemical Co., Midland, Mich., will raise prices on a number of
products.

The company will raise the price of acrylic acid and esters — also known as acrylic monomers
or acrylates — by 3 cents per pound in North America; by $70 per metric ton in Asia Pacific, the
Middle East/Africa and Latin America; and by 50 euros per metric ton in Europe.

Dow will raise the list and off-list prices in North America of Carbowax™ and Carbowax
Sentry™ polyethylene glycols and methoxypolyethylene glycols by 3 cents per pound. It will increase
the off-list prices of certain polyglycol products by 3 cents per pound.

The company also will increase the prices in North America of certain Tergitol™ products by 2
to 5 cents per pound, and Triton™ products by 3 to 10 cents per pound.

The list and off-list prices of oxygenated solvents products including certain alcohols,
esters and E-Series glycol ethers in North America will increase by two to six cents per pound.



September 18, 2007

Wellman To Raise Price Of Fortrel®

Effective October 15, Wellman Inc., Fort Mill, S.C., will increase the price of its Fortrel®
products by 3 cents per pound. The company attributes the increase to the rising cost of ethylene
glycol, a raw material used in the manufacture of polyester staple fiber.



September 18, 2007

Veritas Incorporates Fortron® Yarn Into Automotive Hoses

In an effort to better meet performance demands of charge-air lines in diesel engine turbochargers,
Germany-based rubber manufacturer Veritas AG has developed an elastomeric hose that incorporates a
knitted fabric made of Fortron® polyphenylene sulfide (PPS) multifilament yarn. Manufactured by
Fortron Industries LLC, the yarn offers increased strength and flexibility that enables the hoses
to withstand high temperature, pressure and vibration.

“The charge-air line must withstand pressure, heat and such aggressive media as oil,
lubricants and fuel for the life of the car,” said Peter Kahn, development engineer at Veritas. “
Although engine torque has risen dramatically in recent years, engine mountings are being designed
increasingly ‘soft’ to provide for passenger comfort. This places added stress on other components,
such as the charge-air line, which must absorb up to 3 centimeters of inherent vibration. The PPS
yarn has the strength, extensibility and thermal ability to handle the high internal pressures and
temperatures of this application.”



September 18, 2007

Wacker Introduces Wetsoft® NE 580 Silicone Softener Emulsion

Germany-based Wacker Chemie AG has launched the Wetsoft® NE 580 hydrophilic silicone softener for
the finishing of both natural and man-made fiber textiles. According to the company, the new
softener is a self-dispersing microemulsion concentrate that offers high stability in alkaline
solutions and when exposed to high temperatures, high shear and salts; and also high process
stability.

Wetsoft NE 580 may be used alone or with other finishing agents, and is well-suited for
high-quality finishing applications, the company reports. Among the benefits it imparts to textiles
are increased moisture transport and a “silky-velvety” hand.



September 18, 2007

ITG, OCM India Enter Partnership

The Burlington WorldWide (BWW) division of Greensboro, N.C.-based International Textile Group Inc.
(ITG) and India-based worsted wool fabric manufacturer OCM India Ltd. have entered into a marketing
and commercial partnership intended to help OCM set up state-of-the-art manufacturing operations
and develop and market new wool fabrics that use BWW’s fabric technologies. As part of the
partnership, BWW also will assist OCM by developing and running an export program to sell OCM
fabrics in the United States, Europe and Asia; and OCM will be licensed to manufacture and sell
BURLINGTON®-branded enhanced wool fabrics in India.

Both ITG and OCM are owned by New York City-based investment firm WL Ross & Co. LLC —
ITG having been created by the 2004 merger of Burlington Industries and Cone Mills, which WL Ross
acquired in 2003, and OCM having been acquired earlier this year. BWW is part of ITG’s Apparel
Fabrics business segment.

“This is a tremendous opportunity to expand ITG’s footprint into the growing Indian market
and provide an additional supply chain of products for the US and European markets,” said Wilbur L.
Ross Jr., chairman, ITG. “BWW is the North American leader in worsted wool products, and its
expertise in wool manufacturing and new fabric development will further OCM’s operations and
breadth of product to grow a global wool platform for both companies.”



September 18, 2007

Senators Propose Legislation To Strengthen Consumer Agency

Two US senators have introduced legislation in Congress designed to beef up the Consumer Product
Safety Commission (CPSC), which has jurisdiction over the safety of a wide range of consumer
products including textiles and apparel.

Sens. Daniel Inouye, D-Hawaii, chairman of the Commerce Committee, and Mark Pryor,
D-Arkansas, say the CPSC Reform Act of 2007 is designed to rebuild the consumer agency and enable
it to meet the challenges of today’s economy.

Under the Bush administration CPSC has been moribund as a result of budget cuts and failure
to name the number of commissioners needed to do its job. That all changed when the flap developed
over toy imports of Chinese toys that were found to have lead paint levels that are illegal in the
United States. Other toys also were found to present safety hazards. Although toy manufacturers
have made massive recalls and are in negotiations with their overseas suppliers, Congress is likely
to act soon to give the CPSC more authority and the staff necessary to address product safety
problems. While the CPSC in the past has had problems with some textile products, they are few and
far between today, but problems could exist with imports, and US manufacturers are keeping an eye
on that situation.

The CPSC reform act would authorize funding in 2007 to increase the staff to at least 500
employees by 2013. It authorizes funding levels for seven years starting at $80 million in 2009 and
increases funding at a rate of 10 percent per year through 2015. In 2008, an additional $20-million
would be authorized to upgrade CPSC’s laboratories.

The act also would:

• increase civil fines up to $250,000 per violation with a cap of $100 million;

• increase criminal penalties to five years in jail for those who knowingly and willingly
violate product safety laws;

• require independent, third-party safety certification on every children’s product that
enters the United States;

• restore the commission to five members instead of the present three in order to prevent
future absences of quorum;

• allow state attorneys general to bring civil action on behalf of their residents;

• provide whistleblower protection for manufacturers’ and importers’ employees to shed light
on problems along the supply chain;

• make it illegal for retailers to sell a recalled product; and

• streamline product safety rule-making processes to be timely and proactive.



September 18, 2007

BASF Develops Formaldehyde-Free Pigment-Printing System

Germany-based BASF AG has developed a formaldehyde-free version of its Helizarin® textile pigment
printing system, enabling textile manufacturers to meet regulatory standards and brand and retailer
requirements without taking additional steps.

The new system incorporates the new formaldehyde-free Helizarin Fixing Agent TX 4737 and
Helizarin Binder TX 4738, and BASF’s existing formaldehyde-free thickeners.

“Product safety and environmental protection are our top priority when developing new
products,” said Dr. Karl Siemensmeyer, responsible for developing the new products. “The new
formaldehyde-free Helizarin pigment printing system further strengthens BASF’s eco-friendly product
lineup.”



September 11, 2007

On Your Mark For ITMA 2007

As everybody around the textile globe knows: The ITMA 2007 will take place in Munich/Germany
from September 13 to 20, 2007. The event has set a new record: More than 1,450 exhibitors from 38
countries are expected to showcase their latest textile machinery developments to some 150,000
visitors in Munich. For those on their way to the show, as well as those that may not be aware of
available services at ITMA, here are a few details that will help you improve your time at the “
Textile Machinery Olympics.”

The official ITMA website, www.itma.com, is a free tool for preparing for ITMA 2007. After
registering, use the organizer function to optimize your trade-fair preparation and visit. There
are several different organizer functions available.

The ITMA 2007 Exhibition Catalogue contains an Alphabetical Exhibitor Directory, an Exhibitor
Directory by Products and an Exhibitor Directory by Countries. A small hall plan booklet that can
be taken out of the catalogue gives visitors detailed plans of all 16 halls. The Exhibition
Catalogue is available at a price of 4 euros at the information and cash counters in all entrances,
as well as at information counters within the halls.

Free Transport Connections

All ITMA 2007 exhibitors, visitors and media representatives who have an entrance badge or a
voucher have free use of the airport shuttle and of all public transport in the Munich area to and
from the New Munich Trade Fair Centre.

The center may be reached easily by airport shuttle, public transport or car. Visitors who
arrive at the airport or stay in the city center can take advantage of an efficient metro system
that provides quick and easy access from the city to the fairground, and a regular and efficient
airport shuttle service. For example, at Munich Central station you can take the underground U2.
The trip to the trade fair center takes only about 20 minutes. Furthermore, Munich International
Trade Fairs offers an airport shuttle bus service between the airport and the New Munich Trade Fair
Centre. Buses depart every 30 minutes and travel nonstop to the fairgrounds. The trip takes
approximately 45 minutes.

No Pictures, Please

Of course, for various reasons, photographing is generally not permitted on the trade fair
grounds. Only exhibitors are allowed to take photos of their own stands. The ban on filming and
photography during ITMA is indicated at all entrances by signs and rules of the house. Security
guards will ensure compliance with these regulations.


Special Needs

ITMA 2007 commenced parallel to Ramadan and the Jewish New Year. Munich International Trade
Fairs will provide a number of special services for Muslim and Jewish visitors. All information may
be downloaded from the ITMA website. The brochure “Multinational Services” will be given to all
interested visitors and exhibitors.

Sightseeing

Munich is a nice place to be and is probably one of the most charming cities in Germany. The
city has many opportunities for fun, shopping and sightseeing; and a great range of locations to
enjoy typical Bavarian hospitality — not only at the Hofbräuhaus or the Oktoberfest. A tour to the
famous Viktualienmarkt — Munich’s great marketplace situated on more than 22,000 square meters — or
to the Ayinger Brewery is highly recommended. An insider tip from local people is to take the tram
tour. By the way, never eat Weisswurst after lunch!

Are you ready now? The

Textile World
team is ready, too. For a chat, or just to relax for a few minutes, come and see us. We’l
l be delighted to welcome you in Hall A4, Booth 207.



September 11, 1007

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