Going Green Or Terribly Toxic


I
t is a bit of a perfect storm. Just as US consumers seem to be perking up with interests
in going green, they are alarmed that the products they buy might be delivering more than they
asked for — and not in a good way. It is great news that consumers are thinking about how things
are made and with what they are made. However, a recent rash of recalls and troubling environmental
news from China has shaken their confidence.

For years, the US consumer seemed uninterested — T-shirts were just T-shirts, toys
were just toys, dog food was just dog food and even fish were just fish. One rarely considered the
safety of toothpaste, and the current contaminations chillingly harken back to the Tylenol
cyanide-tampering scare of 1982.

US consumers are used to these types of negative events being handled as Johnson
& Johnson handled the Tylenol crisis — that company set the bar for crisis management. J&J
immediately ceased production, recalled 31 million bottles of Tylenol at a cost of more than $100
million, and sent a team of researchers and scientists to get to the source of the tampering.
J&J was vocal in the media about the dangers of the product and initiated the use of
tamper-resistant packaging. Within months, the company regained its market share and may have
earned a stronger following due to the integrity it demonstrated to the US consumer.

Looking at the fiasco of toys decorated with lead paint and Chinese-made tires that
were supposedly not made to original specification, there is clearly an additional challenge here.
Who stands up and owns the problem? Is it the retailer? The importer? The brand? The
manufacturer?

J&J was able to stand up and own the problem, resolve it and move on. That may
not be possible here. Recently, the Chinese government announced a four-month “special war” to
raise product quality. According to reports in the China Daily newspaper, eight categories of
products are involved. Vice Premier Wu Yi, who recently was appointed to head

a Cabinet-level panel on food safety and quality control, was quoted as saying, “
This is a special war to protect the safety and interests of the general public, as well as a war
to safeguard the made-in-China label and the country’s image.” That announcement came the same week
The Wall Street Journal ran an

article detailing river pollution in China under the header “Ravaged Rivers” and
titled “China Pays Steep Price As Textile Exports Boom — Suppliers to US Stores Accused of Dumping
Dyes To Slash Their Costs.” The story details Hong Kong-based Fountain Set’s 230-acre Dongguan Fuan
textile campus, which it states is responsible for 6 percent of the world supply of cotton knits
and is accused of dumping 20,000 tons of contaminated water into a nearby river each day.

The US has had its share of environmental problems, but US manufacturing has come a
long way. If how it is made and what it is made of matters to US consumers, and big retail is going
to hang its hat on going green — then the opportunity to promote “made green in the USA” would ring
loud and clear. Just maybe, T-shirts aren’t just T-shirts, toys aren’t just toys, dog food isn’t
just dog food, and even fish aren’t just fish.



September/October 2007

Outlast Partners With Select Comfort Beds, Introduces New Coating

Outlast Technologies Inc., a Boulder, Colo.-based developer of phase-change materials (PCMs) and
applications, has partnered with Minneapolis-based Select Comfort Corp. for the inclusion of
Outlast® temperature-regulating technology in Select Comfort’s Sleep Number 9000 line of beds.

The bed’s pillowtop incorporates Outlast Adaptive Comfort® material to help reduce swings in
temperature. The bed also is covered in bouclé yarn, which transfers moisture and vapor away from
the sleeper while enhancing the capabilities of the Outlast material in the pillowtop.

“Taking a systemic approach to Outlast technology has been a concept we’ve advocated for
years,” said Guy Eckert, vice president, Outlast. “Select Comfort embraced this by adding mattress
pads and pillows with Outlast technology to its mattress collection. By layering Outlast technology
into the sleep system, they can now offer a solution for everyone from normal sleepers in search of
a more comfortable night’s sleep to thermally incompatible couples to women experiencing symptoms
associated with [menopause].”

In other company news, Outlast has developed its Matrix Infusion Coating application process
that finely prints an advanced formulation of Outlast microencapsulated PCMs onto flat fabric. The
process enables a business to cost-effectively add temperature regulation to fabrics already in
their product lines, according to Outlast.

The new coating can be used on almost any fabric, and is especially suitable for the active,
casual and sportswear markets that use polyester and compression fabrics. “It is the perfect
application for activewear,” said Mark Hartmann, technical director, Outlast. “It gives the
temperature regulation benefits of Outlast technology and the wicking capabilities of polyester. It
is like having a backup system for your active needs.”



September 5, 2007

Sunbrella® Receives GREENGUARD Certification

Glen Raven, N.C.-based Glen Raven Inc.’s Sunbrella® performance fabrics have received the
Atlanta-based GREENGUARD Environmental Institute’s (GEI’s) certification as a low-emitting product.
The certification signals that the fabrics — originally designed for use in outdoor applications
including boat covers, lawn and patio furniture and awnings, but increasingly being used also in
indoor settings — can be used for interior applications with no detrimental effects to indoor air.

The Sunbrella fabric line also has received the stricter Greenguard Children &
Schools(SM) Certification for products used in schools and other indoor environments where children
and other people with sensitivities to pollutants are likely to congregate.

GEI was established in 2001 to provide independent certification of products based on
established emission standards. To date, more than 150,000 products have received certification
from the organization.

“This program takes our long-standing commitment to environmental protection to a higher
level,” said Vince Hankins, new business development manager, Glen Raven Custom Fabrics.

“With [Sunbrella’s] growth as an interior fabric, we believe it is important to continue to
promote trust in our brand with the type of independent testing and certification provided by
Greenguard,” Hankins added.



September 5, 2007

Gov. Easley Proposes Program To Support Manufacturing Investments In Distressed N.C. Counties

North Carolina Gov. Mike Easley has announced he will propose new legislation to provide assistance
to manufacturing companies that commit to making significant investments to modernize existing
facilities in distressed counties throughout the state.

Easley will introduce the legislation, titled “The American Productivity and Competitiveness
Act of North Carolina,” during next year’s General Assembly session. The proposed program would
involve state and local government/industry partnerships similar to existing incentive grant
programs that must be approved by the Economic Investment Committee. Those grants are awarded based
on a portion of new taxes stemming from the investment and on training costs.

“The economy is changing rapidly,” Easley said. “Those companies that invest in technology
and in a high-skilled workforce will succeed. Those which do not will fail. North Carolina wants to
partner in success.”

Qualifying manufacturers that would request aid to upgrade North Carolina-based facilities
must employ at least 1,500 highly paid workers in Tier 1 distressed counties. In order to qualify,
companies also must maintain current employment levels; pay wages equal to or greater than 140
percent of the average wage in the county; provide quality health insurance and benefits;
demonstrate environmental and workforce safety at their facilities; and be current with their tax
payments.



September 5, 2007

Bakane To Retire From Cone Denim

International Textile Group Inc. (ITG), Greensboro, N.C., has announced that John L. Bakane,
president of ITG’s Cone Denim division, will retire at the end of this year. Bakane has held that
position since 2004, previously serving as chairman and CEO of Cone Mills Inc., which was merged
into ITG that same year.

After earning a master’s degree from the University of Virginia, Bakane began his career with
Cone Mills in 1975, starting in the company’s cost accounting department and rising through the
ranks to become CFO in 1988. He subsequently served as president of Cone Apparel Products Group and
in 1998 was named CEO of Cone Mills Corp. He also served on the company’s Board of Directors from
1989, eventually serving as chairman. He also has been active in leadership roles with a number of
philanthropic and religious organizations in the Greensboro area.

“John has made a number of significant contributions to the company in his many leadership
roles,” said Joseph L. Gorga, president and CEO, ITG. “Through its many transitions and changes,
ITG Cone Denim is positioned for continued growth in the global denim market. I greatly appreciate
John’s contributions. I know everyone within the ITG organization and the Greensboro community will
join me in wishing John well as he makes this change to spend more time with his family.”

Bakane was instrumental in helping Cone Denim expand into Mexico, China and Nicaragua; and
has been a supporter of the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).
Cone Denim was the first US supplier of denim in the CAFTA-DR region. Bakane will continue his
involvement in assessing the division’s global opportunities until the time of his retirement.



September 5, 2007

Teijin Twaron Becomes Teijin Aramid

The Netherlands-based aramid yarn, fiber and pulp manufacturer Teijin Twaron has changed its name
to reflect the breadth of its product range. The company now is known as Teijin Aramid.

Teijin Twaron became part of the Japan-based Teijin Group in 2000. Since that time, it has
expanded its product line to include not only its flagship Twaron® para-aramid but also Sulfron®
modified Twaron aramid for rubber applications, Technora® para-aramid with enhanced strength and
Teijinconex® meta-aramid for heat-resistant applications. Going forward, Teijin Aramid plans to
expand and further develop its product range.

In conjunction with the name change, the company also has launched a new website:
www.teijinaramid.com.



September 5, 2007

SABIC Completes GE Plastics Acquisition

Saudi Arabia-based Saudi Basic Industries Corp. (SABIC), a global petrochemicals manufacturer with
six business units including Basic Chemicals, Intermediates, Specialty Products, Polymers,
Fertilizers and Metals — has completed its acquisition of GE Plastics from General Electric Company
for $11.6 billion. Now known as SABIC Innovative Plastics, the business will be led by CEO Brian
Gladden and will focus on worldwide growth of thermoplastics and engineering plastics for
automotive, construction, electronics and healthcare applications.

“This acquisition will significantly broaden SABIC’s plastics product portfolio and provide
access to new global markets,” said HH Prince Saud bin Abdullah bin Thenayan Al-Saud, chairman
SABIC. “The people, products and technologies of SABIC Innovative Plastics bring a legacy of
material innovation and expertise that I believe will enable SABIC to further strengthen and grow
its position as a world-class leader in the plastics industry. We will maintain our commitment to
the people, communities and facilities that have contributed to thiss world-class organization.”

US headquarters of SABIC Innovative Plastics will remain in Pittsfield, Mass.



September 5, 2007

BASF Commences Steron® Production At New Facility

Germany-based BASF AG has commenced production of Steron®, a new coating, at a new pilot facility
in Ludwigshafen, Germany. The company will use the facility to further develop Steron technology
and work with customers to customize the technology to their individual needs and applications.

Developed by Philipp Schaefer, Steron imparts a high-quality surface finish to an array of
materials such as woven fabrics, fleece fabrics, leather, wood and plastics. The coating is
suitable for automobile interior upholstery because it can impart an optically uniform design.

The coating is applied via an aqueous formulation of pigmented polyurethanes that is sprayed
on a silicon matrix. The majority of the water evaporates, leaving a thin membrane with micro-fine
pores, imparting breathability to the material. The membrane is then adhered to the material and
the finished product lifted from the matrix. Different patterns set by the matrix enable the coated
material to look like a variety of surfaces — from smooth, embossed leather to velvet. Matrixes can
be changed out within minutes, making small production runs of coated materials cost-effective.

“We are pleased to be able to include Steron in BASF’s service portfolio,” said Dr. Jürgen
Weiser, project manager, new technologies, BASF Performance Chemicals. “With BASF’s research and
development expertise and infrastructure, and its partnership with Philipp Schaefer, we can unfold
the full innovative potential of this very promising new technology.”



September 5, 2007

Performance Fibers To Expand Yarn Production In Germany

Richmond, Va.-based Performance
Fibers will expand capacity by more than 10 percent at its Bad Hersfeld, Germany, facility — which
currently produces low-denier industrial (LDI) yarn used in laminated and coated fabrics, and
sewing threads — with a multimillion dollar investment in draw winder machinery. The new line of
machinery is expected to be online by the middle of this year.

“This investment keeps our state-of-the-art facility in Bad Hersfeld competitive and
strengthens our position as a leading provider of LDI yarns for specialty applications,” said Greg
Rogowski, president and CEO.



January/February 2007

VF Subsidiary Sets Up Napapijri® Joint Venture

A subsidiary of Greensboro, N.C.-based VF Corp. has established Napapijri Japan Co. Ltd., a
majority-owned joint venture with Tokyo-based Mitsui & Co. Ltd., to market and distribute the
Napapijri® brand of premium sportswear. VF has appointed Masato Fujino president of the Tokyo-based
venture.

The brand, acquired by VF in 2004 and sold to retail outlets mainly in Europe, was previously
sold in Japan through a distributor.

“Building a stronger presence in such important markets as Japan is a key part of continuing
the Napapijri brand’s strong momentum,” said Aidan O’Meara, president, VF Asia-Pacific. “We are
fortunate to have Mitsui as our partner, given their extensive reach and well-established
capabilities. At the same time, VF’s excellence in brand building and marketing will enable the
brand to reach its full potential in Japan.”

O’Meara added that the new company will grow with the opening of additional retail stores as
well as with expanded distribution in department and specialty stores.



September/October 2007

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