San Francisco-based apparel marketer Levi Strauss & Co. (LS&Co.) recently celebrated the
grand opening of a 151,000-square-foot product depot located near its distribution center in
Hebron, Ky. The company-operated depot, which replaces a third-party managed facility, receives
Levi’s® and Dockers® products arriving from global manufacturing facilities and provides the
distribution center with increased storage capacity. The depot will enable the company to more
quickly distribute products to US-based retailers as well as to its company-operated US retail
stores.

Following relocation in May, Levi Strauss added approximately 20 jobs at the depot and the
distribution center. The company expects to add more than 40 jobs altogether in the next year or
two as the depot reaches full capacity. 

“The new depot deepens Levi Strauss & Co.’s commitment to the Hebron community and
creates new jobs for the area,” said Robert Hanson, president, Levi Strauss Americas. “This grand
opening is an occasion to celebrate our growth in Northern Kentucky and the strong partnership
between LS&Co. and Workers United to provide union jobs in the region.” Workers United – a
trade union representing 150,000 workers in the United States and Canada – represents the
approximately 600 employees at the company’s distribution center.

“This new facility means additional good-paying union jobs for Northern Kentucky,” said Bruce
Raynor, president, Workers United. “It also continues to build the long and productive relationship
that Workers United and Levi Strauss & Co. have enjoyed for more than 30 years.”

September 22, 2009

Pendergrass, Ga.-based TenCate Geosynthetics North America — a division of the Netherlands-based
Royal Ten Cate — reports that its Mirafi® BXG base reinforcement geogrids outperformed all tested
biaxial geogrids, including traditional extruded biaxial geogrids, in an independent study
performed for the Montana Department of Transportation (DOT) and the Federal Highway Administration
examining the use of reinforcement geosynthetics in unsurfaced roads built on soft subgrades.

In the study, the Western Transportation Institute evaluated eight geogrids against two
control sections and found that TenCate’s Mirafi BXG woven geogrids enabled high strength
transference from geogrid to soil, preventing rupturing. The study reports the TenCate geogrids had
“very little rib damage” and provided better rutting performance than the other geogrids that were
evaluated.

“We are extremely pleased with the results of this independent study,” said Brett Odgers, PE,
roadway reinforcement market manager, TenCate Geosynthetics. “Our geogrid production technology has
allowed us to produce the most effective reinforcement geogrid available on the market. We are also
pleased that this research finally dispels the myth that old extruded geogrid technology
outperforms the revolutionary woven geogrid technology.”

September 22, 2009

Researchers at the Institute for Hygiene and Biotechnology (IHB) at The Hohenstein Institute — a
Germany-based textile research and testing laboratory with locations worldwide — have created a
textile coating that enables adult human stem cell colonization on the surface fibers of textile
implants. Adult stem cells can be retrieved from many types of human tissues, and the cell colonies
that are obtained from a patient’s body cells allow placement of tiny “all-rounders” at the site of
the damaged tissue, which then enables generation of new cells by the introduction of specific
factors. These mesenchymal stem cells are able to develop into various tissues, such as heart
muscle or bone or cartilaginous tissue. After a certain amount of time, the patient’s body
dissolves the biodegradable implants. Colonizing stem cells on textiles opens up possibilities for
applications in regenerative medicine such as tissues that are irreversibly damaged owing to a
heart attack or spinal cord injury.

“This is an initial success in the direction of textile stem cell therapy,” said Dr. Dirk
Hoefer, manager, IHB. “But we still need to develop better understanding of how stem cells colonize
– meaning interact with – fibers. Therefore, we will continue working on optimizing colonization of
textile implants in order to provide as many cells as possible per unit of fiber surface and with
the required factors in a targeted way.”

The Institute is working on ways to colonize various textiles with human stem cells in the
laboratory and then convert them directly into the cell type of the target tissue. Scientists also
are currently researching a way to color-mark the stem cells so they may be identified and tracked
even after they’ve been absorbed into the intended tissue.

September 22, 2009

Cumming, Ga.-based Strata Systems Inc. — a manufacturer of geogrid products and services, and a
subsidiary of Glen Raven, N.C.-based technical fabrics manufacturer Glen Raven Inc. — has named
Veco Ltd. an official distributor of its products in Egypt. Veco is an engineering and construction
company that supports infrastructure growth in Egypt including highway development. Strata now has
distribution partners in 13 countries.

“We continue to be successful overseas for many reasons,” said Chip Fuller, president, Strata
Systems. “The Strata brand is recognized for premium quality, and we offer technical support for
customers in solving problems and advising on the application of our products. The Strata customer
service group is also very important to our worldwide sales with their expertise in facilitating
logistics and efficient, reliable shipping.”

September 22, 2009

Germany-based BASF SE, a chemical company that manufactures products including fine chemicals,
plastics and finishing products, has announced it will restructure its nylon 6 production in
Europe. The company will focus production at its integrated Verbund sites in Antwerp, Belgium, and
Ludwigshafen, Germany, and will discontinue production at its site in Rudolstadt, Germany, by the
end of 2010. The restructuring measures will result in the elimination of 58 positions in
Rudolstadt and 19 positions in Ludwigshafen. Affected employees at Ludwigshafen will be offered
other positions at the site, which will focus on manufacturing higher margin products. BASF will
continue operating a compounding plant in Rudolstadt for producing engineering plastics.

“By focusing on the large, backward-integrated Verbund sites, we are improving our cost basis
and safeguarding our competitiveness in the European polyamide 6 market,” said Dr. Harald Lauke,
head of Performance Polymers, BASF.

According to BASF, these restructuring measures in Europe will reduce the company’s annual
worldwide polymerization capacity by 40,000 tons to 680,000 tons, a reduction of approximately 6
percent.

September 15, 2009

In a case that has been followed closely by US textile manufacturers, President Obama has decided
to impose additional tariffs of up to 35 percent on imports of tires from China. While the case
will directly benefit manufacturers of tire cord, textile industry officials are heartened by what
they see as a possibility of using the same procedure to get relief from other imports of textiles
that they believe are disrupting the market.

The three-year remedies impose an additional tariff of 35 percent on top of the current 4
percent the first year, 30 percent the second year and 25 percent in the third year. The action
follows a determination by the US International Trade Commission that a harmful surge of Chinese
tires disrupted the US market.

Reacting to the decision, US Trade Representative Ron Kirk said: “When China came to the
World Trade Organization (WTO), the [United States] negotiated the ability to impose remedies in
situations just like this one. The Administration is doing what is necessary to enforce trade
agreements on behalf of American workers and manufacturers. Enforcing trade laws is key to
maintaining an open and free trading system.”

The action was taken under Section 421 of the 1974 Trade Act that provides for remedies when
market disruption is determined. Textile manufacturers maintain that illegally subsidized Chinese
imports are disrupting a number of markets, and they see Section 421 as the easiest, least costly
and most direct route to get relief.

US textile manufacturers welcomed the decision, importers of textiles and apparel blasted it,
and the Chinese government threatened retaliation.

Calling the decision “good news,” Cass Johnson, president of the National Council of Textile
Organizations, said it demonstrates that Section 421 cases are a “viable option” to address trade
problems. He said government data show that where textiles are concerned, there is market
disruption, job losses and plant closings resulting from import surges, pretty much the same
criteria that were used in the tire case.

Lloyd Wood, a spokesman for the American Manufacturing Trade Action Coalition, which includes
textile manufacturers, said that while the decision is a good thing, it is only a short-term remedy
and the US government must undertake a more comprehensive approach to attacking illegally
subsidized trade that he says has created a cumulative $3.8 trillion trade deficit since 2001.

US importers of textiles and apparel sharply attacked the decision saying it creates a
“dangerous precedent that opens the door to more protectionism.” Laura Jones, executive director of
the United States Association of Importers of Textiles and Apparel, said: “With the President’s
decision on tires, we have to expect that other groups will now try to use their political clout to
decide US trade policy.” She claimed that restrictions on imports of Chinese clothing would not
return any jobs to the United States but would result in increased costs of clothing at a time when
consumers already are wary of spending and retailers are hurting.

Kevin Burke, president and CEO of the American Apparel and Footwear Association, also
expressed his concern that the action taken in the tire case could lead to petitions covering
clothing imports. He said, “We are confident that a petition would not factually substantiate the
need for tariffs on clothing.” He said, however, that “we are concerned that the affirmative
decision on tires raises political expectations that additional protectionist measures could be
easily granted, which could lead to an international trade war and jeopardize our economic
recovery.”

The Chinese government immediately threatened to retaliate against US exports of poultry and
auto parts, and possibly to appeal the decision at the WTO. China’s Minister of Trade said the
decision is “a grave act of protectionism” that not only violates WTO rules but also runs counter
to a pledge made by the US government at an economic summit last April not to engage in any
protectionist practices.

September 15, 2009

As an old horse in this industry, I’m still convinced that true textile people are a little bit
like farmers: They always argue that life is tough, they don’t make any money and they’re close to
bankruptcy. However, I’ve never seen a farmer with an old tractor and an old barn. Farmers around
the world are in a comfortable situation: They have the strongest lobby in their parliaments and
are – sorry farmers – still the biggest obstacle to free trade.

Slippery Slope

With the whole textile fabric and apparel industry on a slippery slope, the textile machinery
industry is not far away from the point of vanishing too. And, as a very human touch, it is still
common sense to blame other people for its own mistakes and delay the development of new products
(See ”
The
Rupp Report: The Vicious Circle Of Money,” Sept. 8, 2009). But there are new twists in the
story – enhanced service and cost reduction.

Original Parts Close To The Market

There are companies that are in search of new ways to generate new business. Spare parts are
a possibility – genuine spare parts. Everybody knows the problem with spare parts. First, you have
a machine breakdown and you need the spare parts immediately. Most companies carry some parts in
stock, but to reduce costs they are sent only by collect freight. At ITM 2009 in Istanbul, Turkey,
Oerlikon Textile Components presented its new approach to spare parts sales. Oerlikon opened with
its agent in Turkey a spare parts shop – yes, a shop. The franchiser is maintaining a certain
quantity of spare parts which are available from the shelf. The store personnel are industry
experienced and trained by Oerlikon Textile Components in Germany.

For Example

Now, if the customer needs new travelers, he goes to the shop and buys them. If, for example,
a customer needs five spindles, they cost 250 euros. If he’s ordering the spindles from Germany, he
pays transport costs of some 300 euros. If he buys in the local store, he only pays the 250 euros.
This is a silly calculation and very expensive. Let’s take the example of the rings and travelers.
According to Oerlikon Textile Components, a 25 percent loss of travelers through handling is
average. Why? Many travelers are wrongly stored in textile plants and therefore many travelers are
never used. If the shop stocks the travelers and provides them 24 hours a day, the change of the
parts in the spinning mill is easy to execute without maintaining its own supply that potentially
may not be used.

Premium Products

As mentioned, top labels only sell top quality. According to Iris Biermann, vice president
and head of markets and product strategy, Oerlikon Textile Components’ brand guarantees highest
quality. There is no need to conduct time-consuming research. Furthermore, the one-stop-shop
strategy of the product portfolio includes all components, spare parts and consumables relevant to
ring spinning. Time is money. For the purchaser, it is essential to have a reliable source to get
his spare parts. All important components, spare and wear parts for ring spinning are on hand with
a guaranteed availability. The store holds stock on the spot, which reduces machine down times and
decreases spare parts stock at mills.

Customer Proximity

Customer proximity is a necessity. The new stores will be in the most important markets where
the customers are. The decision to open a store is based on the number of installed spindles in a
200-kilometer radius. All required parts should be at the customer’s premises in less than 24
hours.On top of that, every authorized dealer is provided with the latest products news and
developments from the supplier. And last, but not least, it is always favorable to have a
face-to-face contact with your supplier.

Oerlikon Textile Components said that it will open some 10 stores in the next few years.
We’ll see. However, this is an idea to observe in the future. If you want to know more, please
contact
iris.biermann@oerlikontextile.com.

September 15, 2009

Italy-based Radici Yarn S.p.A. — a manufacturer of nylon 6 and nylon 6,6 partially-oriented yarn
(POY), fully-oriented yarn (FOY) and fully-drawn yarn (FDY); and part of Italy-based RadiciGroup –
has streamlined its organizational structure, concentrating its nylon 6 and nylon 6,6 yarn
manufacturing operations at its Villa d’Ogna, Italy, production site.

Radici Yarn also processes nylon 6 and nylon 6,6 yarns at S.C. Yarnea S.r.l., a RadiciGroup
company based in Romania. According to Radici, the Yarnea facility employs innovative yarn
processing technology that can deliver high-performance, high-quality yarn with good technical
properties.

Radici Yarn recently introduced its Radilon® multifilament yarn for apparel in an expanded
range of colors. The company reports the yarn offers color consistency, lot continuity and
excellent wash and light resistance.

September 15, 2009

United States Trade Representative (USTR) Ron Kirk has announced that Gail Strickler has been
chosen as the new Assistant USTR for Textiles. In her new role, Strickler will supervise
negotiations affecting textile and apparel products, advise Ambassador Kirk on textile and trade
policy matters, and will work to expand the industry’s access to foreign markets.

After receiving a B.A. from Worcester, Mass.-based Clark University, followed by coursework
in textile technology and textile chemistry from the New York City-based Fashion Institute of
Technology, Strickler worked for Saxon Textile Corp. for 26 years. She began her Saxon career as a
product development manager and through promotions became vice president, president and eventually
CEO. After Saxon was acquired by Fall River, Mass.-based Duro Textile LLC in 2007, Strickler became
vice president of the company’s Global Apparel Division. Strickler has experience in global and
domestic sourcing and has covered all aspects of the textile and apparel industry.

Strickler most recently served as associate director for the Institute for Textiles and
Apparel Product Safety at Philadelphia University’s College of Textiles and Sciences. Additionally,
she spent five years as president of the Textiles Distributors Association, served on the Board of
Directors of the National Council of Textile Organizations for five years, and has served as a
board member for the US Department of Agriculture’s Cotton Board since 2002.

“I am pleased to announce Gail Strickler as USTR’s new Assistant United States Trade
Representative for Textiles,” said Ambassador Kirk. ” She brings a wealth of knowledge to this
position and will be able to immediately address pertinent textiles and apparel related issues.
Gail will play a pivotal role in helping the US Trade Representative’s office and the industries
adapt to a trade environment that has undergone significant changes in the recent past, and to
exploring new market opportunities.”

September 15, 2009

New York City-based Simparel Inc. – a provider of global supply chain management and enterprise
resource planning (ERP) solutions – has expanded its Enterprise business solution to now offer
design, concept, planning, and preproduction product lifecycle management (PLM) features. Customers
now can have a fully configured PLM designed specifically for their business.

“With a Simparel system in place, fashion companies can have the PLM they need without buying
modules or having to compromise their business processes to fit inflexible software,” said Richard
Farb, vice president, sales and marketing, Simparel. “The biggest failings for PLM are complicated,
long and expensive implementations that often cause more problems than they solve.”

Simparel’s 100-percent metadata-driven application allows users to choose what they like and
change what they don’t like about the solution. According to the company, the solution – which is
open to every member of the company for individual viewing and managing – can generate any form,
add any field, manage any business hierarchy and display any grid result in real time without
writing programming code, resulting in a flexible system that can adapt to change.

September 15, 2009