Among its ever-growing readership, the Rupp Report enjoys a lively e-mail exchange with dedicated
readers, which is always more than welcome. In the past weeks, I’ve had a vivid communication with
some readers who have asked: “Are you on the green trip now?” because

Textile World
has published some reports with green or environmental content. No, I’m not, I replied. There
are hundreds of reasons today to be conscious of the environment, and it pays off.

Ecology is not a simple marketing phrase or a public relations tool. Austria-based Lenzing
AG, a leader in global viscose production, is heavily committed to an environmentally friendly
production and attitude in its business. In 2008, the group recorded sales of 1.33 billion euros,
with an export share of 88 percent. The annual fiber production was 540,300 metric tons with a
staff of 5,945 people.

Global Collapse Of The Fiber Market …

The global collapse of the fiber market at the end of 2008 was followed by a second-quarter
2009 minor recovery, which continued into the third quarter. The cotton price of 60 cents per pound
at the end of the third quarter was still far below the 2008 peak price of more than 80 cents. The
situation for polyester prices was similar; they increased slightly due to rising crude oil prices.
In July 2009, the Lenzing Group acquired 40 percent of Indonesia-based fiber trading company PGL,
which has been in cooperation with Lenzing’s Indonesian subsidiary PT. South Pacific Viscose (SPV)
for many years. As PGL itself holds a 12-percent share in SPV, Lenzing thereby raised its share in
SPV from 86 percent to about 91 percent.

… Followed By Rising Demand For Cellulose Fibers

According to recent information, Lenzing is enjoying a rising demand for cellulose fibers.
Positive second-quarter developments continued into the third quarter, due to this rising demand,
the company said. However, the global economic crisis had a considerable impact on the company’s
first-quarter results and affected sales and figures. Consolidated sales in the first nine months
of 2009 fell to 912.3 million euros, compared with 1,012.1 million euros in the same period in
2008. On the other hand, the nine-month financial result improved by 44 percent to -10.4 million
euros, compared with -8.4 million euros in the first nine months of 2009, owing to a positive
foreign currency result.

Textile And Nonwoven Fibers

By the end of second-quarter 2009, Lenzing’s fiber production approached full capacity at all
locations. At the same time, inventories were significantly reduced due to rising demand, and the
market accepted the first price increases. Pulp prices recovered, making it necessary to further
adjust prices. Viscose fiber prices are still considerably lower than last year’s price levels.
Beginning with the second quarter, the Textile Fibers business unit again realized very good sales
results for both standard fibers and special fibers, including Lenzing Modal®, Lenzing FR® and
Tencel®. Lenzing also noted very strong regional demand in Asia and Brazil.

The Nonwoven Fibers business unit recorded significantly increased demand for cellulose
nonwovens products and a slight increase in fiber prices. New situations, such as the fear of a new
influenza epidemic, caused demand to rise for hygienic wipes and medical face masks. Disposable
products, such as baby wipes, were very successful in the United States “due to the natural origin
of the fibers”, the producer claims.

A Look Into The Crystal Ball

Lenzing is “cautiously positive” about its business development for the rest of 2009, noting
“better than expected” development of the fiber market over the past year. The company anticipates
trends in Asia, Turkey and South America may remain positive, but it is still possible inventories
may build up in the textile supply chain, and forecasts beyond the end of 2009 are tentative. In
addition, Lenzing expects anti-dumping procedures in Brazil and India will significantly slow sales
of products that contain its fibers.

Imitators Welcome

A few weeks ago, the Rupp Report informed its readers with the latest news from the fiber
front, quoting that Lenzing is heavily dedicated to environmentally friendly production
(See
The
Rupp Report: The U-Turn Of The Man-Made Fiber Industry, Sept. 22, 2009). Lenzing board
member Friedrich Weninger mentioned that any fiber production should be environmentally friendly
and that “responsibility has to become the key issue of economic, social and environmental
activities.” This seems to pay off, at least for the Austrians. Here, imitators following an
ecological and economical way are more than welcome.



November 10, 2009

Green Bay, Wis.-based Paper Converting Machine Co. (PCMC) — a global supplier of high-performance
nonwovens converting machinery, and part of St. Louis-based Barry-Wehmiller Companies Inc. — is
introducing Marlin cross-folded wet wipes converting technology at its upcoming technical
conference, to be held November 18-19 in Somerset, N.J.

The company will offer technical and commercial presentations along with a continuous
demonstration of the PCMC Marlin cross folder in combination with a Rose Forgrove Integra wrapper
and Veltron II floating nose feeder — both manufactured by PCMC’s Greenville-based sister
division, HayssenSandiacre. PCMC also will unveil its Mako cutting technology for the high-speed
cutting of flat folded wet wipes.



November 10, 2009

Germany-based nonwovens manufacturer Sandler AG has announced it will build a new plant in 2010 at
its headquarters in Schwarzenbach. The company plans to begin construction this year, which will
include a new parking area, access road and bridge. Sandler will tear down its existing central
warehouse for voluminous nonwovens to build the new two-story facility, which will cover 10,500
square meters per floor.

Sandler reports the million-euro investment will not only enable the company to continue
supplying existing and new markets with nonwovens products and provide additional workplaces, but
also will make Schwarzenbach one of the largest nonwovens production sites globally. 

November 10, 2009

The Netherlands-based DSM Dyneema has announced that Prevent — Europe-based manufacturer of
Glassbeater cut-resistant clothing for manufacturers in the glass and metal industries — has
joined DSM’s global licensing program for protective clothing. Glassbeater’s collection of
comfortable, protective apparel is made with Dyneema® fiber and provides the maximum cut resistance
level 5 protection according to the EN388 cut-resistance standard. It also is CE marked, certifying
it has met European Union consumer safety, health and environmental requirements.

Together, DSM and Prevent will develop innovative products and market a broad portfolio of
protective clothing for arm, shoulder and body protection. The collaboration marks DSM’s business
strategy to expand its high-protective textiles applications beyond arm and hand protection to
all-body wear.

In other company news, Royal DSM N.V., parent company of DSM Dyneema, has won the
international AVK Innovation Award in the Environment category for its new lightweight air-cargo
containers, which help airlines reduce carbon emissions by 28,000 tons per year — equivalent to
removing 8,500 cars from the road. The containers are made using ultra-strong RP10 panels
comprising DSM’s Aeronite® resin and Dyneema fiber. The panels are three times more
impact-resistant and almost 50-percent lighter than standard aluminum panels used in cargo
containers, according to the company. DSM licensed the technology to Germany-based DoKaSch GmbH, an
air cargo equipment manufacturer. More than 400 containers have been used already by various
airlines.

Each year, the AVK Innovation Awards are presented for solutions to state-of-the-art
technological issues based on the use of composites and thermosets. The awards recognize the
reinforced plastics industry’s achievements in environmental protection.

November 10, 2009

Tukatech Inc. — a Los Angeles-based software and product development solutions provider for the
apparel and sewn goods industry — reports that El Salvador-based performance and athletic apparel
manufacturer Partex Apparel International has implemented the E-Fit Simulator by Tuka, a 3-D
virtual sample and fit development system for designers, pattern makers and apparel manufacturers.
The simulator takes digital patterns and a set of values such as stretch, weight and texture, and
generates a digital sample of the garment, which is then draped on a 3-D virtual fit model.

“We are all looking at reducing the development time,” said Juan C. Zighelboim, co-owner of
Partex. “The 3-D virtual samples make more sense today than ever. We expect to reduce time and cost
significantly with [the] 3-D sampling process. I especially love the built-in motion simulator that
gives instant feedback on mistakes so we can correct and move on immediately.”

Tukatech reports the installation of the E-Fit Simulator at Partex Apparel is the first in
Central America.

November 10, 2009

San Francisco-based apparel marketer Levi Strauss & Co. (LS&Co.) and Rockville, Md.-based
Goodwill® Industries International Inc. have partnered to launch “A Care Tag for Our Planet,” an
initiative to divert billions of pounds of clothing from landfills by encouraging people to donate
their unwanted clothing. Levi’s® brand clothing will include the message on its product care tags
in select US retail and wholesale operations beginning in January 2010, and on regional and global
tags beginning in Fall 2010. Levi’s is the first major retailer to include this messaging on its
clothing.

“A Care Tag for Our Planet is Goodwill’s first partnership of its kind designed to increase
the life cycle of clothing and textiles to address the approximately 23.8 billion pounds that end
up in US landfills each year,” said Jim Gibbons, CEO and president, Goodwill. “As the ‘Original
Recycler,’ 166 community-based Goodwills in the United States and Canada collectively divert more
than 1.5 billion pounds of clothing and textiles every year from landfills by recovering the value
in people’s unwanted material goods. In addition to funding community-based services, these
landfill diversion programs create job-training opportunities for more than 1.5 million people a
year.”

November 10, 2009

Chicago-based Atlas Material Testing Technology LLC has added a two-tier rack option to its Ci3000+
Fade-Ometer® xenon weathering instrument. The option increases the Ci3000’s capacity by 50 percent,
from 2,188 square centimeters (cm
²) to 3422 cm
². Unlike typical xenon textile testers that have two tiers of specimens arranged
vertically, Atlas’ innovative design combines two sample holders in its trademark inclined
position, offering unequaled irradiance uniformity across the entire vertical exposure area,
according to the company.

Each specimen’s opening measures 4 cm by 14.5 cm, providing plenty of space to take
instrumental color measurements. A standard insert allows one portion to be easily hidden for
visual color evaluations. The two-tier rack option also can be retrofitted to existing Ci3000+
instruments.

“The Ci3000 is one of the most recognized lightfastness testing instruments for textile
testing,” said Matthew McGreer, global product manager, Atlas Material Testing Technology. “With
this product enhancement, we met our design goals of offering customers increased capacity without
sacrificing Atlas’ long-standing reputation of quality and uniformity.”



November 10, 2009