At the conclusion of two and a half days of meetings at the World Trade Organization (WTO) in
Geneva, trade officials from 153 nations made a strong commitment to conclude the Doha Round of
trade liberalization negotiations in 2010.

The Doha Round, started in 2001, has been bogged down as a result of differences between
developed and developing nations on a number of issues, and while there was a good deal of talk
about the economic importance of trade, little in the form of specific commitments came out of the
meetings. Although WTO Director General Pascal Lamy said there is “political energy” to move the
talks forward, a good deal of skepticism surrounded the sessions.

In a statement following the meetings, US Trade Representative Ron Kirk said: “WTO members
have repeatedly committed this year to moving the Doha Round forward. It is time to act on those
commitments, move outside of our comfort zones and make the hard choices required of those who
would lead the WTO.” He added that “the proof is in the pudding.”

Kirk repeatedly underscored the importance of creating greater market access throughout the
world and said the United States believes it is important to “rebalance” the Doha Round to ensure
it creates better opportunities for US exports. While Kirk, in his public statement and a press
conference following the meetings, did not mention the concerns of US manufacturing industries over
the impact of imports on the economy, he said only that was pleased that the WTO members had not
turned to “protectionist measures” during the world economic crisis.

Kirk said: “In the US we recognize trade can be an important pillar of growing economic
recovery and economic recovery at home, particularly by creating the well paying jobs that
Americans want and need. He assured the less developed countries that the US recognizes the
necessity of the Round for the poorest countries “to which the Obama Administration has made a
special commitment.”

Chile’s Finance Minister Andrés Velasco, who chaired the ministerial meetings, said there has
been a “strong convergence” on the importance of trade and the Doha Round to economic recovery and
poverty alleviation in developing countries. He said the “development dimension” should remain
central to the Round and “particular attention should be paid to issues of importance to developing
countries.”

The ministers agreed to have a stock-taking meeting during the first quarter of 2010.

December 8, 2009

Gastonia, N.C.-based Sans Technical Fibers LLC — a manufacturer of nylon filament and yarns, and a
wholly-owned subsidiary of South Africa-based AECI Ltd. — has announced plans to expand its
Stoneville, N.C., plant. The company will invest more than $2.8 million to increase plant capacity
to 8,000 metric tons per year. Production will concentrate on low-shrinkage, high-tenacity products
from 60 to 630 deniers using a variety of specialized polymers. Primary end-uses for the filaments
and yarns include sewing threads, automotive timing belts, cure wrapping tapes, and narrow and
broad woven items for military applications. The new capacity is expected to be online by the end
of third-quarter 2010. According to President Zach Zacharias, Sans Technical will use in-house
technology as well as modern equipment transferred from a closed plant in South Africa for the
expansion.

“We are extremely pleased to announce this expansion, which will ensure that we maintain our
position as the premier supplier to the global nylon 6,6 sewing thread market,” Zacharias said.
“Most of the capacity from this cost-effective expansion will be exported into Europe, South
America and Asia.”

The investment will be aided by a One North Carolina Fund grant of $60,000. The fund offers
financial assistance to businesses through local governments to draw business projects to the state
to boost economic activity and create jobs.

December 8, 2009

South Windsor, Conn.-based Gerber Scientific Inc. — a developer of computer-aided design and
computer-aided management and product lifecycle management (PLM) solutions for the apparel and
flexible materials industries — has acquired Yunique Solutions Inc., a New York City-based
developer of Web-based software solutions for the fashion industry.

“Yunique … will give Gerber Technology an advanced PLM software offering,” said Marc Giles,
president and CEO, Gerber Scientific. “Integrating Yunique’s advanced technologies and expertise
will expand our capability for building substantial value for customers and shareholders.” 

“This is a powerful combination,” said Daniel Pak and Darioush Nikpour, co-founders and
principal owners, Yunique. “Our customers will now be supported by a global team of PLM solutions
consultants that is unmatched in the industry. Innovation will accelerate. Gerber’s global
footprint and resources will enhance sales penetration and service delivery.”

December 8, 2009

According to recent market information from Germany-based Bremen Cotton Exchange and the
Washington-based International Cotton Advisory Committee (ICAC), global cotton production is
projected to total 22.2 million metric tons in 2009-10. This is a 5-percent decrease from 2008-09
production resulting from reduced yields. It also represents the third consecutive season of
decline in global cotton output for reasons including decreased price competitiveness of cotton
compared with competing crops and a weakening in cotton yields in the last two seasons. Globally,
average cotton yield increased from 566 kilograms per hectare (kg/ha) in 1998-99 to a record 792
kg/ha in 2007-08.

Decreased Yield

The increase between 1998-99 and 2007-08 was driven by several factors, for example, the
introduction of new technologies, an expanded use of existing techniques, and shifts in areas used
for cotton production. However, since 2007-08, cotton yield has declined. In 2009-10, global cotton
yield is projected to total 726 kg/ha — the lowest in six seasons. ICAC’s look in the crystal ball
indicates world cotton yield might have entered a period of slow growth that could last for several
years.

Mill Use

Global cotton mill use is projected to rise by 2 percent to 23.8 million tons in 2009-10.
This increase is said to be driven by the global economic recovery. Of the seven largest cotton
consumers, only China, India, Pakistan and Bangladesh are expected to see increases in cotton mill
use during this period, with a projected 70-percent combined share of world cotton mill use. Also,
prices are showing a slight improvement: The Cotlook A Index continued to increase during November.
It reached 74.05 cents per pound on November 30 — 10 cents higher than the price at the beginning
of this season.

Last week, according to information from England-based Plexus Cotton Ltd., New York futures
traded lower, as March futures closed  at 74.24 cents — a loss of 98 points. With some fears
regarding a potential debt crisis in Dubai receding, the cotton market had a rather uneventful
week. Even though prices moved lower for a few days, there was hardly any downside momentum behind
it, Plexus reported.

The Plexus report, dated December 3, continues: “We currently seem to have a standoff between
mills and merchants, with both sides unwilling or perhaps unable to make price concessions. Mills
are still not ready to accept the big jump in prices that has occurred over the last two months,
during which the nearby futures contract has risen from 61 cents in early October to over 74 cents.
… [S]ince merchants operate primarily from basis-long positions, they are forced to follow the
lead of the futures market and are therefore unable to meet the lower price ideas of mills.”

Buyers Should Pay Attention

Markets are quite volatile this season. Plexus reports there is a significant production gap
and warns of impending short supply of high grades. Just to hope for lower prices and to expect
continuing availability of the desired qualities into next spring or summer seems to be the wrong
way. However, some people are buying: Two weeks ago, Plexus reports, “the US sold 250,700 running
bales of Upland cotton to 22 different markets, with China taking the biggest portion at 68,300
running bales. During the same week, unfixed on-call sales increased by 361,200 bales net, with
unfixed sales on the March contract jumping by 541,300 bales. Overall there are once again nearly 5
million bales of unfixed on-call sales open ….”

The report continues: “In a market that is moving higher, this strategy of leaving the price
open is backfiring on buyers. … A 13 cents move over two months on a rolling position of roughly
5 million bales of unfixed on-call sales amounts to around $325 million. By keeping such a large
number of unfixed contracts open, mills are essentially defeating their purpose, because these
unfixed contracts create tremendous support underneath the market and keep potential corrections
well contained.”

Consolidation In The Markets

In conclusion, the report adds: “The market seems to be in the process of consolidating the
price jump that was brought about by the Dec/March spread. … Outside markets continue to act in
support of commodities, with the dollar showing further weakness and stock markets holding steady
at the moment. Barring any unforeseen events in the world’s financial markets, we expect current
crop futures to climb above 80 cents in the months ahead.”

December 8, 2009

New York City-based activewear manufacturer Anvil Knitwear Inc. has been named the official T-shirt
and knitwear partner of Earth Day Network, an organization established to promote environmental
citizenship. Anvil will be a leading sponsor of Earth Day — to be celebrated April 25, 2010 — and
will participate in the associated 40th anniversary activities. The company will design and develop
knitwear comprising organic, recycled, transitional and reprocessed polyethylene terephthalate
fibers for Earth Day’s apparel line, which will be sold online and through retail stores. The line
also will be available to consumers at all Earth Day events, including Earth Day on the National
Mall in Washington and celebrations scheduled in 40 cities globally.

Anvil also is developing an exclusive apparel line for Earth Day Network’s The Green
Generation™ campaign, which encourages people globally to find solutions for issues such as climate
change and the global water crisis. The Green Generation line will feature AnvilSustainable™,
AnvilOrganic® and AnvilRecycled® apparel, and will be available beginning in 2010 at Earth Day
Network events and online.

Established after the original Earth Day in 1970, Earth Day Network now has more than 17,000
partners and organizations in 174 countries. In addition, more than 1 billion people worldwide
participate in Earth Day activities.

December 8, 2009

Wellford, S.C.-based Leigh Fibers Inc. — a manufacturer of reprocessed textile waste and fiber
by-products — has debuted a new fire-retardant (FR) shoddy in its SafeLeigh™ product line.
Comprising 100-percent recycled material and FR aramids, SafeLeigh FR Shoddy complies with current
and new standards such as the US Department of Transportation Federal Motor Vehicle Safety Standard
(FMVSS) 302 for flammability of automotive interior materials. According to Leigh Fibers, it is a
cost-effective replacement for materials typically used in trunk liners, headliners, upholstery
backing, interior acoustical departments and interior engine components; and also is
environmentally friendly, as the FR aramids are blended into the material, eliminating the need to
use chemical treatments, as well as associated drying times. SafeLeigh FR shoddy is compatible with
all common forming systems.

December 8, 2009

Brazil-based nonwovens producer Companhia Providência Indústria e Comércio has resumed work to
establish its first manufacturing plant in North America after suspending plans because of the
global economic crisis. An official groundbreaking ceremony is scheduled to take place early in
2010. It was announced in September 2008 that Providência USA would be built in Statesville, N.C.,
and was expected to be operational by mid-2009
(See ”
Brazilian
Firm To Establish US Nonwoven Operation,” September/October 2008). The plant now is
expected to be up and running sometime during the first half of 2011.

“This announcement further underscores the company’s plans for expansion,” said Hermínio
Freitas, CEO, Providência. “For some time now, we have been examining the company’s structure and
consequently its capacity, but with the world financial crisis, we had put new investments on hold.
In the past few quarters, we have noticed the increase in demand and the resumption of this project
will be instrumental in meeting this need — increasing our production capacity to 100,000 tons per
year.”

The scale of the project is smaller than originally planned, but the still significant
expected investment of $80 million will include land and a 90,000-square-foot facility as well as
machinery. Planned installed nonwoven fabric capacity is 20,000 tons per year, and the plant will
employ 56 people.

“At the revised investment and jobs level, Providência USA still represents the largest new
capital project in Statesville in more than a decade,” said Bill Leach, chairman, Greater
Statesville Development Corp. “We certainly understand and are sympathetic to the economic
conditions that [led] to delaying the start of construction and the changes in capital investment.
We are happy that the company never lost confidence that Statesville was the right place and
continued to work with us to find the right time.”

December 8, 2009

Morrisville, NC   (December 1, 2009) – Industrial Microwave Systems, L.L.C. (IMS), a
manufacturer of patented microwave heating and drying equipment headquartered in Morrisville, NC,
has entered into an agreement with Allertex of America, a leading manufacturer’s representative for
nonwoven and textile equipment companies.  The agreement establishes Allertex as Industrial
Microwave Systems’ sales agent for the nonwoven and textile markets in North America.

“We’re excited to partner with Allertex and leverage their expertise and experience to
further promote and establish our technology in these markets,” stated Darian Spell, Market Manager
at Industrial Microwave Systems.

IMS manufactures industrial heating and drying equipment that employs microwave energy to
efficiently heat and dry webbed substrates.  The company’s patented designs and technology
excel at providing rapid, uniform heating in a precisely controllable manner.  These features
enable nonwovens and textile producers to increase productivity, reduce operating costs, improve
product quality, and develop new innovative products.  Conventional drying technologies
(convection and conduction) heat from the surface inward; microwave energy rapidly heats the volume
of moisture throughout the product.  This attribute makes it particularly effective in drying
less porous and dense fabrics.

According to David Culp, CEO of Allertex of America, “We see potential value with Industrial
Microwave Systems’ technology for two types of customers – those that have existing drying lines
and those who are putting in new lines where drying of moisture is an integral process.  For
companies retrofitting existing drying lines, this technology can increase productivity while
reducing operating costs. For customers installing new lines, traditional oven technology can be
reduced or possibly even eliminated.”

The modular design of IMS dryers typically utilize a smaller footprint than traditional
drying equipment and can be designed to effectively serve multiple drying functions.  The
technology can act as a:

•    Stand-alone, total drying solution

•    Pre-dryer to efficiently heat moisture to evaporative temperature prior
to entering a conventional dryer to boost overall drying capacity

•    Post-dryer after a conventional dryer to efficiently remove final
residual moisture and optimize drying uniformity

IMS operates a one meter wide drying unit at its facility for customer trials.  In
addition, to assess the value of adding a microwave drying system into a production line, IMS will
complete a custom economic benefit analysis based upon a company’s specific requirements.

December 1, 2009

Press Release Courtesy of Allertex of America

December 2009 – The new Flat Charge Laminator (FCL) from MAG Industrial Automation Systems is ideal
for automated, high-production lay-up of composite spars, beams, stringers and similar parts for
wind-blade manufacture. The highly repeatable system drastically reduces labor, while improving
part quality, productivity and consistency. With four heads dedicated to four different materials,
the servo-controlled machine produces constant- or variable-thickness laminates on a segmented
vacuum table, compacting the layers with a force of 13.6 to 136 kg (30-300 pounds). The FCL handles
0/90 prepreg fabric, +/- 45 prepreg fabric, unidirectional tape and, as an option, foil or film.
Maximum material width is 300 mm (12 inches) on rolls up to 635 mm (25 inches) diameter and
weighing up to (150 pounds).   

The machine features four servo-controlled dispensing heads on a placement carriage that
moves on rails integrated with the vacuum bed. The servo-powered placement carriage is driven by
rack-and-pinion system.     

A Siemens PLC precisely controls the entire process, with speed and position feedback from
rotary and linear encoders on dispensing heads and placement carriage. The servo-driven supply
reels are protected with a magnetic clutch override, and the backing paper take-up system is torque
controlled. A stylus cutter cuts prepreg at 90 degrees, without cutting the backing paper. The
minimum course length is 300 mm (12 inches), and multiple short courses can be put down on the same
ply.   

Options include hot-air heating, tape flaw detection, foil/film feeder, edge tracking, CATIA
software interface, and a semiautomatic load/unload turret for the heads.

About MAG

MAG is a leading machine tool and systems company serving the durable-goods industry
worldwide with complete manufacturing solutions. The company offers a comprehensive line of
equipment and technologies including process development, automated assembly, turning, milling,
automotive powertrain production, composites processing, maintenance, automation and controls, and
core components. Key industrial markets served by these technologies include aerospace, automotive
and truck, heavy equipment, oil and gas, rail, solar energy, wind turbine production and general
machining. With manufacturing and support operations strategically located worldwide, MAG ranks as
a leader in the capital equipment market. A growing number of leading international companies are
relying on the impressive innovation power of MAG to assure their technological leadership and
prepare for future challenges.For more information about MAG, please visit:
www.mag-ias.com

Press Release Courtesy of MAG Industrial Automation Systems

December 8, 2009

The other day, it was on the news that Germany alone is losing 60 billion euros every year due to
copied products. Some people think product piracy and espionage is a recent invention of Asian
people. Certainly not, if one takes a look back in the history books.



The First Economic War

The Industrial Revolution started in the 19th century, notably in the textile industry.
Brilliant English inventors developed new machines — not only power and steam machines, but also
equipment especially for the textile industry, such as the first spinning machines. Soon after
that, the first true economic war started between the British Empire and the Continent.
Industrialists from the Continent paid a lot of money to get the plans and ideas for the machinery.
This went on and on until World War II.

New Competitors

After World War II, the textile industry changed drastically. It all started with
international development plans for so-called Third World countries, and sewing machines were the
“starter drug.” Asian countries — above all, Hong Kong — started booming, thanks mainly to
garment manufacturing. People from Hong Kong and other Asian countries were not welcomed at
international fabric shows such as Interstoff in Frankfurt. The top weapons were scissors to cut
and steal the fabric samples. They were sent to Asia and copied, and came back as — in those times
– very bad fakes.

Then Hong Kong lost its first place to Japan, especially for textile machinery. Every person
in the textile machinery industry looks back with shudders to old ITMAs in Europe, when
Asian-looking people often carried cameras into booths, or were found underneath the machines,
drawing the constructions.

Fake Or Not?

But the biggest problem in the textile industry was and is the copying of apparel. Since the
1960s, the volume of copied apparel has skyrocketed. The textile industry in the West declined
dramatically — we all know the story. The fakes became better and better. And many people today
say the fakes are not copies anymore — they were produced during the ghost shift, without paying
the necessary franchise costs.

The losses due to counterfeit products are colossal for the original owner. Everybody in this
industry knows the costs of creativity. It takes a lot of people to be a successful player. That’s
why the industry in general, and top brands in particular, started to protect themselves. Special
marks, hidden bar codes, and even sewn-in chips allow the manufacturer to protect its garments in
one way or another and to trace their origins. Customs officers are working together, and fakes
often are destroyed in airports before they enter the markets. And, the end of the story is not yet
written.

This might be okay for apparel. But, some time ago, a narrow-fabric weaver asked me how he
could protect his inventions. “How can I insert a label or something else in my ribbons?” he asked.
“I don’t know,” I said, “but I can ask our global readership.” Do you know an answer to that
question? If yes, please let me know by writing to
jrupp@textileworld.com.



December 1, 2009