Manufacturers Chemicals Introduces EcoCare LNC

Cleveland, Tenn.-based Manufacturers Chemicals LLC — a producer of specialty chemicals for the
textile, paper, metals and coating industries, and a division of Synalloy Corp. — has introduced
EcoCare LNC, an eco-friendly disperse dye leveling agent for polyester and other disperse dyeable
fibers.

According to Chuck Stieg, president, Manufacturers Chemicals, many disperse dye leveling
agents are derivatives of phosphated or end-capped nonylphenol ethoxolates, which recent research
indicates may not be completely reacted or can decouple as they degrade, and release nonylphenol
into the environment.

“We expect the use of these derivatives will be discontinued as this new information comes to
light,” Stieg said. “In addition, we are dedicated to developing chemistry that is completely green
in that it comes from renewable feed stock and leaves a small environmental footprint in all phases
of manufacture.”

The company reports it has successfully completed performance testing of EcoCare LNC, and the
product offers additional benefits including other synergistic effects: “[EcoCare LNC] is extremely
low foaming; aids in dispersing dyes, offers wetting and emulsification properties, is an effective
bath lubricant in its own rights and has low biochemical oxygen demand and chemical oxygen demand,”
said Mike Jenkins, director of the company’s Dalton, Ga.-based Floor Covering Group operation,
where testing was undertaken. He added that the agent is more economical than dye leveling agents
derived from nonylphenol ethoxalates.



July 28, 2009

Cotton Incorporated Debuts Storm Cotton™ For Fleece

Cary, N.C.-based Cotton Incorporated has introduced Storm Cotton™ for Fleece, a water-repellent
finish designed for use on cotton fibers. A variation of Storm Cotton technology for cotton
apparel, it is the latest in Cotton Incorporated’s line of Storm water-repellent, wind-protective,
breathable technologies, which also includes Storm Denim™ finish for denim apparel. Targeted uses
include outdoor apparel such as hoodies.

According to David Earley, director of supply chain marketing in Cotton Incorporated’s Global
Supply Chain division, it has been a challenge for the outdoor apparel segment to integrate
performance features into cotton fabric. He also noted that demand exists for outdoor cotton
apparel with performance benefits such as water repellency, protection from wind and other
attributes. “Our research tells us that the majority of consumers (77%) prefer cotton in general,
and most (70%) said they would be willing to pay more for cotton apparel that mimicked many of the
performance features more commonly found in synthetic fabrics,” he said.

July 28, 2009

Invista Unveils Lycra® Sport Program

Wichita, Kan.-based Invista has unveiled the Lycra® Sport performance standard for outdoor and
active apparel fabrics containing Lycra® fiber and is accompanying the launch with a new logo and
hangtag as well as an advertising program and a new website. The program emphasizes high technology
and performance standards associated with the Lycra brand, and its testing procedures and fabric
qualification standards are being shown to certain mill partners. Apparel fabric and sock
manufacturers and brands that participate in the Lycra Sport program must comply with the new
standard in terms of Lycra fiber content, fabric weight, recovery power, bi-directional elongation,
fabric set, fabric shrinkage and fit.

“Invista recognized that the message to consumers had become confusing, with stretch or
spandex appearing on many sport fabric hangtags as a proxy for fit, comfort or freedom of
movement,” said Julien Born, global director, Activewear & Outdoor Apparel, Invista. “While our
research confirms that these benefits are indeed of utmost importance to consumers when purchasing
a sport garment, we also know that stretch via the presence of spandex is only a small part of the
equation to allow consistent delivery of such fabric performance requirements. Our new Lycra Sport
fabric program, which combines stretch fiber technology and demanding fabric performance testing
standards on important parameters such as recovery power, addresses this issue and will help
consumers’ choice at the point of sales.”

July 28, 2009

Lenzing Debuts Tencel® Sun Fiber

Austria-based cellulosic fiber producer Lenzing AG has developed Tencel® Sun fiber, comprising
Tencel lyocell fibers with permanently integrated mineral-based pigments that provide ultraviolet
(UV) protection. According to the company, while conventional fibers lose more than half their UV
capabilities after the fabrics become damp or stretched, Tencel Sun fibers swell, providing
long-term protection. Lenzing reports that even after numerous launderings, the fiber maintains its
effectiveness, and has been shown in testing to attain a sunscreen level of up to 110 SPF.

Tencel Sun fiber is derived from wood and is 100-percent biodegradable. Suitable for high
activity and sports apparel, it also offers moisture management and skin-sensory properties and
exhibits reduced bacterial growth.

July 28, 2009

DAK Americas Announces PSF Price Increase

Effective August 16, Charlotte-based DAK Americas LLC — a producer of polyester staple fibers
(PSFs), polyethylene terephthalate resins, monomers and special polymers and a subsidiary of
Mexico-based Alfa S.A.B. de C.V. — will raise the price on all of its PSF products by 3 cents per
pound. The company cited an increased demand for Asian polyester raw materials, which has resulted
in increased global demand for polyester feed stock, in announcing the price hike.

July 28, 2009

Honeywell Introduces Gold Shield® GN-2117 Ballistic Material

Morris Township, N.J.-based Honeywell Specialty Materials, a division of Honeywell International
Inc., has added Gold Shield® GN-2117 ballistic composite material to its Gold Shield line of soft
armor products. The new material, which combines Honeywell’s patented Shield technology with aramid
fiber, incorporates a proprietary resin and coating system that provides improved protection
against bullets and fragments in military and police armor applications. Honeywell reports it is 10
percent lighter than the company’s traditional Gold Flex® material and offers increased surface
durability and chemical resistance, meeting global body armor standards including certification
under the National Institute of Justice’s (NIJ’s) new NIJ 0101.06 standard for body armor.

“This new material incorporates state-of-the-art composite technology to help armor
manufacturers achieve a high level of ballistic performance with increased resistance to water, gas
and other environmental conditions,” said Joe Gelo, global business director, Honeywell’s Advanced
Fibers and Composites business. “Honeywell remains committed to continuously improving our
ballistic materials to support the goals of law enforcement and the military, which are to reduce
armor weight and improve protection capabilities.”

July 28, 2009

Kissell Introduces Bill To Expand Buy American Textiles

Rep. Larry Kissell, D-N.C., has introduced a resolution in Congress that would require the
Department of Homeland Security (DHS) to buy most of its clothing and textiles from US sources.

The resolution would build on his successful effort last year  to include in the
American Recovery and Reinvestment Act a requirement for the Transportation Security Administration
to purchase uniforms made in America. The new measure is in the form of an amendment to the
so-called Berry Amendment that for years has required the Defense Department to buy American
textiles and apparel whenever possible. It would require DHS to procure all items involving
textiles — such as clothing, tents, tarpaulins, covers and other fabric — from domestic
manufacturers.

In introducing the legislation, Kissell said, “If we are truly determined to turn our economy
around, we need to focus on securing and creating domestic manufacturing jobs.” He pointed out that
a number of countries place restrictions on purchases by their governments, preventing US goods
from competing in some overseas markets.

Cass Johnson, president of the National Council of Textile Organizations, said the 
Kissell resolution would more than double the impact of his earlier legislation and help ensure a
“thriving textile industry and manufacturing base in this country.”

The measure could have rough sledding this time around, however, as President Barack Obama
has expressed his concern over any legislation that could be viewed as protectionist, and
government agencies generally are opposed to Buy American requirements because of the impact on
their budgets.

July 21, 2009

USTR Underscores Importance Of Enforcing Trade Agreements

In a major policy address, US Trade Representative (USTR) Ron Kirk announced a number of new trade
initiatives being undertaken by the Obama administration that will place considerable emphasis on
enforcing US trade remedy laws and world trade rules.

Kirk said Americans do not think the government has done enough to protect US trade rights,
and, for that reason, enforcement “cannot be an afterthought. It needs to be the centerpiece of
trade policy.”

While underscoring the importance of trade agreements, Kirk said, “We must do more than just
pursue new trade deals – we must insist on respect for our rights in the global trading system.”

Addressing some of the issues being pursued by US textile industry lobbyists, Kirk said he
believes one of the best ways to guarantee US trading rights is to “consistently monitor our
partners’ trade practices,” and he said the administration will continue to use anti-dumping and
anti-subsidy laws, which he believes are “vitally important tools.”

Kirk also called for renewed efforts to open overseas markets to US exports, saying that 95
percent of the world’s customers live outside of the United States. He said even in the existing
world trade climate, exports last year generated nearly $2 trillion in income for US farmers,
manufacturers and producers of goods and services and that manufactured goods exports currently
support 6 million jobs.

He said the said a new early warning system is being developed to identify barriers to trade
and help his office to “nip them in the bud.” He believes that can help save US jobs that might
otherwise be lost.

July 21, 2009

Loan Saves Textile Financial Services Supplier From Bankruptcy

CIT, a major provider of financial services for hundreds of textile and apparel manufacturers and
retailers, has received a $3 billion financial package from its major bondholders that will stave
off, at least for the time being, a threat of bankruptcy.

As one of the nation’s largest providers of financial services to small and medium-sized
manufacturers and retailers, CIT is a leading source of funds for factoring, a process by which
manufacturers can receive immediate payments for the goods they sell without facing what could be a
30- to 90-day delay if they were to rely on payments by their customers.

When CIT ran into financial difficulties last year, it received a $2.3 billion loan from the
Treasury Department, but when it recently applied for more stimulus funding, the request was turned
down by Treasury. That action sent shock waves throughout the textile, apparel and retailing
industries that depend on CIT for their cash flow.

The American Apparel and Footwear Association (AAFA) says as many as 60 percent of its
members have done business with CIT, and Cass Johnson, president of the National Council of Textile
Organizations (NCTO), said that many of his members have revolving accounts with CIT and have
established long-standing ties that cannot be replaced by other entities. Johnson said the failure
of CIT would force many otherwise healthy US textile companies and their suppliers to go out of
business.

AAFA, NCTO, the National Textile Association and the American Manufacturing Trade Action
Coalition joined some 30 other textile, apparel and retail associations in an effort to get
additional government funds for CIT. They wrote Treasury Secretary Timothy F. Geithner urging him
to reconsider his decision, pointing out that a CIT bankruptcy would have “severe ramifications for
more than one million small and medium-sized enterprises and their suppliers as well as most of the
significant retail operations in this country.” Retailers warned that their supply chains would be
disrupted and there likely would be bare shelves at Christmas time.

On July 20, CIT’s Board of Directors announced it has entered into a $3 billion loan
agreement with its major bondholders, and that it will begin a “comprehensive restructuring” to
provide additional liquidity and further strengthen its capital position. Board Chairman and CEO
Jeffrey M. Peek said that action will mean his company “is in a position to continue to serve our
valued small business and middle market customers.”

Tracy Mullin, president and CEO of the National Retail Federation, said the CIT action “comes
as a great relief to the many retailers who depend on this major lender for  financing. 
She said the news that CIT will be able to continue operations will be “one less uncertainty for
retailers about to embark on the all important back-to-school and holiday shopping season.”

July 21, 2009

First Half Sales Down, Optimism Up


N
ot surprisingly, spinners reported sales off, on average, 10 to 15 percent for the first
half of 2009, compared to the first six months of 2008. Some companies fared far worse, while a
very few weathered the darkest months of the recession with minimal impact.

“Overall, I would say 10 to 15 percent is about right,” commented one spinner. “It depends a
lot on the product, though. Our ring-spun operation has managed okay, but open-end is completely
hit and miss.”

“It has not been good, but it hasn’t been as bad as we had feared,” another spinner said.
“We are off about 10 percent, but business has been picking up. We haven’t seen an upward spike,
just a slow, but steady, increase in orders.”

Looking ahead to the next six months, many spinners anticipate gradual improvement. “It is
getting better. Orders are still shorter than we would like, but there is more business coming in.
Hopefully, this is not just a small uptick before another drop. Earlier in the year, we noticed
some positive developments one month, and then the following month was slower than ever. We have
our fingers crossed that, this time, the improvement will be more sustained.”

With most economic prognosticators forecasting an end to the global recession later this
year, there is room for some optimism, but few expect an immediate and substantial impact on sales.
“From what I am hearing now,” said a Southeastern executive, “the anticipated recovery is expected
to be mild, at least at the beginning. So I guess you could say we are guardedly optimistic about
the third and fourth quarters.”

According to one industry observer, manufacturers in all segments of the economy would do
well to take a conservative approach in the initial stages of recovery. “If anyone is expecting
consumer spending to return to pre-recessionary levels, I believe they may have to wait for quite
some time. The depth and scope of the current recession and the accompanying credit crisis revealed
the precarious financial position of many consumers. Belt tightening, which in the past might have
been a temporary measure to curb spending, is likely to become a way of life for many people for
quite a while. Fear of job loss, fear of foreclosure, fear of bankruptcy — all these have become
very real for a lot of people over the past year.”


Customer Focus


In any economic environment, focusing on customer value is a key to business success, a
manufacturing consultant noted, but it becomes absolutely essential when times are lean. “You have
to be able to provide to your customers a differentiating value proposition that sets you apart
from your competitors, especially when you can’t compete on price alone. True value is represented
by the combination of price, quality, delivery and service. For those companies that have a viable
value proposition, and are committed to executing it, recovering from depressed sales is inherently
easier. For US industry, for which competition on price alone is difficult, providing value is
based on matching product precisely with customer needs, quick turnaround of flawlessly
manufactured product, expedited delivery and post-sale follow-up. Those companies that can execute
against those elements will be in a good position to take advantage of any economic recovery.”

One specialty spinner agreed: “The way we’ve been able to get business is by providing
higher quality and faster service than our competitors in other parts of the world. We know we
can’t always be competitive on price, but we can make the commitment to have the best quality,
fastest delivery and best service.”

For those companies that haven’t yet felt any signs of recovery, the manufacturing
consultant offered this advice: “When sales are off and earnings are down, obviously you have to
look at where you can take out cost. However, one of the biggest mistakes many manufacturing
companies make is pulling in the reins completely. In difficult times, the priority should be on
generating sales, and that requires aggressively positioning your product relative to your
competition. And that means maintaining – or even increasing – your marketing program.”He went on
to say, “History is full of examples of people and companies that actually made their fortunes in
down times because of how they positioned themselves.”

July/August 2009

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