A group of eight trade associations representing textile and apparel manufacturers and importers
has written to the leadership of congressional committees that handle international trade issues,
asking them “in the most urgent terms” to approve legislation extending the Andean Trade Preference
Act (ATPA) for another two years. The act, which has been extended year-to-year since 1992, is due
to expire December 31. It grants special trade preferences to imports from Peru, Colombia and
Ecuador.

The letter points out that some two million jobs in the region depend on ATPA and says the
three countries are providing a steadily growing market for US exports. Apparel imports from the
Andean region, which enter the United States duty-free, utilize cotton, yarn and fabric made in the
United States. In 2008, US cotton exports to the region totaled almost $150 million, while US
exports of yarn and fabric totaled $160 million.

Participants in the program have been concerned that the year-to-year extension of the
program creates uncertainty in the market, discouraging investments in the area, and in some cases
has resulted in importers looking to Asia for products. As a result, the associations are asking
for a two-year extension of the pact.

The associations point out that ATPA is a centerpiece in the US war on drugs, as it
encourages farmers and manufacturers to produce other products.

“A lapse in the preference program, even for a short period, threatens to undo many of our
economic and foreign policy successes in the region,” the associations said. “Past experience shows
that letting the program lapse with the aim of renewing it retroactively is fraught with serious
problems, not the least of which is harm to US and regional employment as well as US investments in
the region.”

Even though the United States has a free trade agreement (FTA) with Peru, enactment of ATPA
is important because of the co-production of certain products in both Peru and Colombia, which at
this time does not have a FTA with the United States. A FTA with Colombia, negotiated by the Bush
administration and awaiting approval by Congress, would address the co-production issue and also
grant permanent reciprocal treatment for US goods entering Colombia.

Swift passage of the legislation faces some difficulties, because Sen. Charles Grassley,
R-Iowa, the ranking Republican on the Senate Finance Committee, is opposed to preferential
agreements, and he has been successful in the past in delaying passage of preferential trade
legislation.

November 3, 2009

Greenville-based John D. Hollingsworth on Wheels Inc. (HOW) — a designer, manufacturer, servicer
and tester of textile equipment — will close operations on December 31, 2009. President and COO
William E. Henderson cited the continued decline of the US textile industry in announcing the
closing, which will impact 190 people. Employees will receive severance pay and career transition
assistance.

“This is a difficult day for the HOW family,” Henderson said. “We have a dedicated group of
employees and many have been here for a very long time. This decision to close is not reflective of
their capabilities. It’s simply a result of the disappearance of so many of our good textile
industry customers that has resulted in a decreased demand for textile machinery products in the
United States. We will do everything we can to make this transition as smooth as possible.”

Pinckney C. Hollingsworth founded HOW in the late 1800s, beginning as a one-man operation
with a mule-drawn wagon machine shop on wheels that traveled to Carolina cotton mills to repair
textile machinery. Hollingsworth’s son, John D. Sr., continued the business, followed by his son,
John D. Jr.

Henderson reports that HOW is in the process of closing its four subsidiaries located in
Norwood, Mass.; Sylacauga, Ala.; Terrell, Texas; and Quebec.

November 3, 2009

Concord, N.H.-based Nanocomp Technologies Inc. — a developer of advanced performance materials and
component products from carbon nanotubes (CNTs) — has announced that the US Army Natick Soldier
Systems Center in Massachusetts has extended its existing contract with Nanocomp to develop carbon
nanotube materials to use in body armor improvements. The original contract was awarded in August
2008.

In controlled ballistics testing performed earlier this year, Nanocomp’s CNT composite panels
several millimeters thick successfully stopped 9-millimeter bullets, demonstrating that CNT
material offers significant improvements in protection and can reduce body armor weight. With the
contract extension, the company will further develop and refine its CNT products based on these
results.

“We have worked with the Army Natick Soldier Systems Center for the past several years and
have made significant progress toward the ultimate goal of delivering lighter weight, advanced body
armor solutions for US servicemen and women,” said Peter Antoinette, president and CEO, Nanocomp
Technologies. “But there is still plenty of work left to do and today’s announcement underscores
the Army’s clear commitment to continue the development of next-generation body armor. When fully
proven, this advance could also supply lightweight armor protection for vehicles and
aircraft.” 

November 3, 2009

Rome, Ga.-based Syntec Industries — a manufacturer of carpets for the marine, recreational vehicle
and housing markets; and a supplier of trims, vinyl, leather, suede, fabrics, mats and adhesives —
has implemented S2K Enterprise 5.0 software from Vormittag Associates Inc. (VAI), a Ronkonkoma,
N.Y.-based provider of enterprise resource planning solutions for the distribution, manufacturing,
retail and service industries.

Syntec is using the software to integrate production and financial operations at its seven
facilities in Georgia and Indiana, where it manufactures carpet. The software will allow Syntec to
have advanced retrieval of real-time financial information. According to VAI, its S2K Enterprise
5.0 software — featuring streamlined navigation and redesigned screens — offers increased
flexibility, improved access to information and a built-in database so that resources are allocated
more effectively and response time is more rapid than previously.

“Syntec needed to improve its year-end reporting mechanism, and S2K 5.0 includes the
financial management capabilities that promise to streamline this functionality for the company,”
said Cindy Breedlove, central region territory manager. “Syntec is a long-time VAI customer, and
the move to 5.0 symbolizes the manufacturer’s belief that VAI’s solution and technical capabilities
are industry best.”

November 3, 2009

Charlotte-based nonwovens manufacturer Polymer Group Inc. (PGI) has acquired the remaining
40-percent share in Dominion Nonwovens Sudamericana S.A. (PGI Argentina) from its partner in the
joint venture (JV), Guillermo E. Kraves. The company has operated as a JV since 1997, with PGI
owning a majority share since 1999. PGI Argentina, based near Buenos Aires, operates a multi-beam
spunmelt line, extrusion line, and a new wide-width, multi-beam spunbond line. The facility
provides nonwovens to the hygiene and industrial markets in the Mercosur region.

“This investment is a signal of our confidence in the future of our operations in Latin
America and the strategic significance of the operations in Argentina,” said Veronica “Ronee”
Hagen, CEO, PGI. “We have successfully positioned ourselves with supply in each of the major trade
regions of Latin America and bringing the Argentina joint venture fully into the PGI ownership
structure gives us the ability to fully capitalize on future growth opportunities.”

In related company news, PGI has signed an agreement stating its intent to purchase the
nonwovens businesses of Spain-based Tesalca-Texnovo from Grupo Corinpa, S.L. The purchase, expected
to be complete by the end of November, will occur in two phases. During phase one, PGI will
purchase working capital and operations of the nonwovens businesses in exchange for common stock
equal to a 5-percent share in PGI, during phase two, the company will then assume debts and
purchase the remainder of Tesalca-Texnovo in exchange for common stock equal to an additional
1.75-percent share in PGI. Upon completion of the transaction goes, a long-term partnership will be
established, and Grupo Corinpa will have a presence on PGI’s Board of Directors.

Tesalca-Texnovo realized sales of approximately $87 million in 2008. The company supplies
hygiene, medical, industrial and agricultural markets, and is the only company in Spain that
produces spunbond polypropylene nonwoven fabrics. The businesses, which produce more than 50,000
metric tons of nonwovens per year using its six Reifenhäuser Reicofil lines, will be known as PGI
Spain and will operate as a wholly owned subsidiary of PGI. Once the purchase is complete, PGI will
have a global capacity for spunlaid fabrics of more than of 285,000 metric tons.

“Through this transaction, the Tesalca-Texnovo businesses will grow under the ownership of a
large, globally recognized premier nonwovens producer,” said Jose Durany, managing director,
Tesalca-Texnovo. “This will be a good union between companies with similar goals. We look forward
to being long-term partners with PGI.”



November 3, 2009

The Occupational Safety and Health Administration (OSHA) published an advance notice of proposed
rulemaking in the October 21 Federal Register, proposing a rule covering combustible dust created
by 64 industries, including textiles. Combustible dusts are solids ground into fine particles or
fibers that can cause a fire or explosion when suspended in air. Although there have not been any
major problems with textile dust, OSHA nonetheless included textiles and textile products on the
list of products that could be subject to a new standard.

Since October 2007, OSHA has been conducting studies of combustible dust, and it has found
what it says is an unusually high number of general duty clause violations, indicating a need for a
strong combustible standard.

The public has 90 days to comment on the proposed standard, and OSHA says it also will be
holding stakeholder meetings and analyze comments before moving forward with a standard.



October 27, 2009

Italy-based Comez S.p.A. — a producer of crochet knitting, warp knitting and narrow weaving
machinery — has introduced the DNB/EL-1270 double needle bed warp knitting machine for making a
wide range of fabric styles including technical, such as netting and high-performance ribbons and
fabrics for a variety of industrial and technical applications; medical, such as tubular netting,
disposible underwear and bandages and dressings; and apparel, such as fashion fabrics, and mesh
pantyhose and stockings.

The machine has a 1,270-millimeter working width, features individual latch needles and is
compatible with any yarn. Five to 18 needles-per-inch gauges are offered; and the DNB/EL-1270 comes
with 12 electronically-controlled pattern guide bars, allowing different weaves to be created
without stopping the machine. Knockover sinker groups are available if specified. Thread feeders
are electronically controlled, allowing varying stitch density, and differing weft and warp
feeding.

The DNB/EL-1270 can be fed by creels or beams, or a combination of both. The machine will
accept floor-standing external electronic yarn feeders, or electronic yarn feeders can be attached
to the machine. Finished product collection systems can be tailored to each customer’s specific
requirements.

Comez’s new Data Control Controller manages all machine functions, monitors production and
allows large pattern repeats to be created.

Using two needle beds and the pattern guide bars, the machine can produce double-faced
fabrics. Depending on parameter settings, the two sides can be differentiated by using different
structures or yarns; or, the front and back of the fabric can be made to look identical. Spacer
fabrics, which are highly suitable for technical end-uses, also are possible.

Rigid and elastic products can be created in flat or tubular configurations to form
netting-type products that range from simple open structures to more complex structures.



October 27, 2009

The Senate Finance Committee is moving forward with legislation designed to beef up the policing of
international trade by the Customs and Border Protection (CBP), something US textile manufacturers
have long sought.

At a hearing last week on the Customs Facilitation and Trade Enforcement Reauthorization Act,
Finance Committee Chairman Max Baucus, D-Mont., expressed his concern that CBP has neglected its
responsibilities in the trade area as it has waged a war on terrorism and illegal drug traffic.

Pointing out that CBP has a dual responsibility of policing international trade as well as
protecting borders, Baucus said: “These two missions are not mutually exclusive. CBP must do a
better job of balancing them. The agency’s security mission is vitally important, but I am
concerned that CBP has badly neglected its trade mission.”

To address this problem, Baucus and the ranking committee minority member, Charles Grassley,
R-Iowa, are sponsoring legislation that would create a new high-level position within CBP to focus
solely on trade facilitation and enforcement. That office would be directed to create new
enforcement practices to target imports that are most likely to violate US laws, but it also would
provide speedy customs clearance for importers with a strong history of complying with US laws. The
bill directs CBP to do a better job of consulting businesses affected by its policies as well at
the Finance Committee and Congress as a whole.

The National Retail Federation (NRF) strongly endorsed the legislation, saying it will
restore balance between the CBP’s international trade and homeland security duties. In a written
statement submitted to the committee, Jonathan Gold, NRF’s vice president for supply chain and
customs policy, said: “While we agree national security is an extremely  important objective
and strongly support CBP’s current efforts, there are many within the trade community who feel as
if trade facilitation has fallen by the wayside as a core element of CBP’s mission.” The statement
added that NRF believes the pending legislation is intended to strike a balance between the
agency’s trade duties and homeland security by declaring trade facilitation is a priority.

US textile manufacturers have long been concerned that Customs has neglected illegal
international trade in recent years as it focused its efforts and resources on combating illegal
drug traffic and border protection. While they generally support the goals of the Baucus-Grassley
bill, they would like to see legislation that is more textile-specific granting more authority to
seize illegal goods, a better electronic system to track the source of textile and apparel imports,
hiring more textile and apparel specialists and providing Customs agents with better training.

October 27, 2009

It has been 30 years since Japan-based Murata Machinery Ltd. invented its Mach Splicer. The splicer
originally was introduced at the International Exhibition of Textile Machinery (ITMA) in 1979.
Using compressed air, the splicer joins two ends of yarn without the need for a knot, a process
that improves the quality of a spun yarn. The original Mach Splicer was suitable for splicing
cotton yarns, but Murata also currently offers splicers for wool, linen and core spun yarns.

The benefits of knotless yarns in downstream processing are well-known today. Machine
stoppage and fabric flaws are less frequent because the yarns used are knot-free.

Air splicers are commonplace in the textile industry today, but Murata reports it continues
its research and development efforts in splicing technology and is committed to to advancing the
technology.

October 27, 2009

The Rupp Report is pleased to publish more good news, this time from the yarn and fabric front:
According to the latest news from the Switzerland-based International Textile Manufacturers
Federation (ITMF), world textile production saw an “impressive rebound” in the second quarter of
2009. ITMF’s State of Trade Report Q2/2009 continues below:

Both global yarn and fabric production surged driven by Asia in general and China in
particular. Global yarn and fabric stocks continued to fall slightly both reaching long-term lows.
Yarn orders were up in Europe though from a low level, while Brazil’s saw a significant jump. The
continuous downward trend since 2007 in fabric orders in Europe was stopped and slightly reversed.
Brazil’s fabric orders on the other hand decreased slightly.

World yarn production jumped in the 2nd quarter by +22.4% as compared to the previous
quarter after having fallen continuously since the 2nd quarter 2007. All regions recorded
increases, especially South America with +44.9% followed by Asia with +23.3%, Europe with +2.2% and
North America with +1.5%. In comparison to last year’s quarter only South America and Asia saw
increases (+1.9% and +1.0%, respectively), while yarn production in North America and Europe were
still considerably below last year’s levels (-25.2% and -15.3%, respectively.

Fabric production also soared worldwide by +14.4% in the 2nd quarter of 2009 in comparison
to the previous one. Unlike global yarn production global fabric production increased only in Asia
(+16.7%) and North America (+7.8%) and fell slightly in Europe (-0.4%) and South America (-0.6%).
Year-on-year global fabric production was up by +3.2% due to higher outputs in Asia (+6.7%), while
North America, Europe and South America still recorded lower production levels of -22.5, -18.8 and
-3.1%, respectively.

Global yarn inventories were down by -3.0% in the 2nd quarter of 2009 as compared to the
previous one. Yarn stocks plummeted in South America by -15.3% and decreased in Asia by -3.4% but
remained stable in Europe and North America.On an annual basis yarn stocks were down by -1.3%
globally, with South America and Asia seeing a reduction of -6.1% and -1.7%. Europe saw a marginal
increase of +0.7%.

The level of fabric inventories fell worldwide by -4.5%, thus recording the lowest in years.
All regions contributed to this reduction: South America -6.9%, North America -5.1%, Asia -4.9% and
Europe -1.5%. In comparison to last year’s 2nd quarter, inventories dropped by -14.3% on a global
scale. This was a result of lower stocks in all regions with Asia recording a fall of -21.0%, North
America of -8.0%, South America of -6.9% and Europe of -1.3%.

In the 2nd quarter 2009 yarn order rose slightly in Europe by +2.4% and strongly in Brazil
by +12.0%. On an annual basis yarn orders were still considerably down by -10.4% in Europe but
jumped by +25.3% in Brazil. Fabric orders increased in Europe in comparison to the previous quarter
by +1,6% and decreased slightly by -0.8% in Brazil. Year-on-year fabric orders plummeted by in
Europe by -14.6% and in Brazil by -3.1%.

October 27, 2009