Milliken Sells Automotive Fabrics Division To Management Group

Milliken & Company, Spartanburg, has signed a letter of intent to sell its Automotive Body
Cloth division to a management group led by Dirk Pieper and Brian McSharry, with support from
Greenville-based investment firm Azalea Capital LLC. The new company, to be called Autotex, will be
based in South Carolina. Jim Micali, an Azalea principal and a former president and chairman of
Greenville-based Michelin North America Inc., will serve as chairman. As of Textile World’s press
time, the sale was expected to be complete July 10, 2009.

Milliken stated the sale is in line with its strategy to focus on other existing and emerging
growth markets. Approximately 1,200 associates in the division’s worldwide operation are impacted
by the sale. Of those, more than 1,000 will transfer to Autotex.

Included in the sale are Gayley Plant, Marietta, S.C.; Abbeville Plant, Abbeville, S.C.;
Cotton Blossom Plant, Spartanburg; Avalon Plant, Toccoa, Ga.; Autotex Plant, Brazil; and support
operations in the United Kingdom, Japan and China. Sharon Plant near Abbeville will close,
impacting 140 associates.

July/August 2009

FesslerUSA Plant To Add Solar Power Generating System

A $1.6 million loan from the Pennsylvania Industrial Development Authority to Orwigsburg, Pa.-based
knitwear manufacturer FesslerUSA will help fund construction of a $5.4 million 1-megawatt
photovoltaic solar power generating system at the company’s Deer Lake manufacturing plant.

The loan follows a $1 million grant the company received for the project in late 2008 from
the Pennsylvania Energy Development Authority. The project includes a new roof for the plant and
installation of photovoltaic solar panels to generate more than 1 million kilowatt hours of
electricity annually, with completion expected before the end of 2009.

The company initiated the project in a proactive effort to control costs at the plant, in
view of an expected 40-percent jump in industrial electricity rates when state caps on rates are
removed Jan. 1, 2010. “Since we use considerable electricity in our manufacturing process, and the
clock was ticking, we wanted to evaluate every option to help us maintain our competitiveness in
this globally competitive marketplace,” said Bonnie Meck, chief sustainability officer, FesslerUSA.

“We soon learned that we were trailblazers,” added CEO Walter Meck, referring to a lack of
infrastructure in Pennsylvania to support industrial-scale solar power generation. “Europe and a
number of states in the USA have made great progress, but Pennsylvania is just learning what it
takes to make solar work. A myriad of financial and regulatory challenges presented themselves at
every turn in the road.”

Meck credited support from state and federal lawmakers, including US 17th District Rep. Tim
Holden, D-Pa., and State Sen. Dave Argall, R-29, as well as the Governor’s Action Team. The
Schuylkill Economic Development Corp. also supported the project.



July/August 2009

Effort To Expand Apparel Exports Blocked

US textile manufacturers and their supporters in Congress have blocked, at least for the time
being, an effort to expand duty-free treatment for apparel imports from Pakistan and Afghanistan.
The effort revolves around legislation creating Reconstruction Opportunity Zones (ROZs) designed to
strengthen the economies of two key US partners in the war on terrorism. Senate sponsors of the
legislation say it will give the people in Pakistan and Afghanistan “new hope and opportunities.”

The legislation, which has passed the House of Representatives as part of the Foreign Affairs
Authorization, would permit non-sensitive exports of textiles, apparel, agricultural products and
hand-crafted goods from these areas to enter the United States duty-free. In order for an area to
be designated a ROZ, President Barack Obama must determine that Pakistan and Afghanistan are
meeting a number of criteria, including establishing or making progress toward establishing
market-based economies, eliminating barriers to US trade and investment, protecting intellectual
property rights, meeting internationally recognized worker rights standards, and taking steps to
reduce poverty.

When the legislation was being considered by the House, an effort was made, at the behest of
US importers, to include the so-called “sensitive product categories” that had been excluded from
quota-free treatment under the now-expired US-China bilateral agreement.

Importers of textiles and apparel have pressed to have the duty-exempt categories expanded to
include all textile and apparel products, but particularly cotton trousers and shorts and cotton
knit tops. These products, importers say, would most likely create job opportunities in the areas
covered by the legislation.In a statement made when the legislation was pending in the House, a
coalition of textile importers said these products currently account for 64 percent of the apparel
exports from Pakistan and more than a quarter of all exports from Pakistan to the United States.
“Configuring the ROZ program to include these items will give Pakistan a fighting chance in this
competitive industry,” the coalition said, “Moreover, US producers are not at risk from apparel
exports from Pakistan, it is the other Asian producers who compete with Pakistan.”

With a big assist from Rep. John Spratt, D-S.C., the sensitive products were removed from the
bill before final House passage, although an effort to restore them is expected to be made in the
Senate.

Sen. Maria Cantwell, D-Wash., is sponsoring a ROZ bill that would exclude the sensitive
product categories, and Sen. Lindsey Graham, R-S.C., a co-sponsor of the Cantwell bill, has voiced
his strong opposition to any changes. The National Council of Textile Organizations supports the
ROZ legislation in general but not the expansion into the sensitive categories.

July 14, 2009

The Rupp Report: 2009 ITMF Annual Conference To Be Held In Shanghai

The Textile Industries Media Group (TIMG) — publishers of trade magazines

Textile World
 ,

Textile World Asia
 and

Textiles Panamericanos
 — has been named official media partner for the 2009 International Textile Manufacturers
Federation (ITMF) Annual Conference, to be held October 23-25 in Shanghai. TIMG will provide
exclusive pre-conference coverage in special sections to be included in the September/October 2009
issues of

TW
 and

TPA
 and the July/August/September 2009 issue of

TW Asia
 , and a conference report to be published in the following issues.

ITMF is one of the oldest non-governmental organizations. It was founded in 1904 at a meeting
held in Zurich and convened at the initiative of the British cotton spinning industry. That’s why
it still has a very close relationship with the whole cotton industry. However, today, ITMF
activities cover the entire textile industry, including nonwovens and technical textiles as well as
apparel.

The main objectives are to provide a forum for discussion, to be a neutral meeting ground for
textile trade associations to exchange information and to act as an overall organization of the
textile industry for the collection of information, statistical and otherwise, on textile
manufacturing developments around the world.

ITMF also acts as a narrator for the world textile industry and functions as a liaison agent
among the textile industries and governments and intergovernmental organizations interested in the
textile industry.


High-Ranking Organization


ITMF is without doubt the most important textile association around the world. Members are
associations and other constituted organizations of textile manufacturers. There can be only one
member association from each country. The members have access to all annual statistics as well as
to other important data and committee papers. Associate members are associations and other
constituted organizations of textile manufacturers in countries in which there is already a member
association. It is also possible to be a corporate member. These are manufacturers of textiles or
of products allied to the textile industry, such as textile machinery.

ITMF is the highest-ranking global meeting point for networking. At the annual meeting, held
somewhere around the globe, the top-ranking textile industry leaders meet, to attend an excellent
conference but also to exchange information and strengthen contacts with the leaders of the global
textile machinery and textile industry. These high-level gatherings are probably even more
important than are just the statistics. This comment is made based on personally participating at
these annual meetings for many years.

China, 2009 Host Country

The annual meeting is always organized by a country association, which invites the delegates
from all four corners of the world. The 2009 ITMF Annual Conference in Shanghai is organized by the
China National Textile & Apparel Council (CNTAC). CNTAC says it is honored to host the 2009
conference, and believes “that the convention of the delegates in China will help participants to
reach a certain consensus on issues of common interest and to push forward the bilateral and
multilateral cooperation as well as to provide grounds for the textile industry in China and the
rest of world to develop … a better understanding.”



Structural Changes

The general theme of the conference, “Structural Adjustments in the World Textile Industry,”
is based on the current situation of the world textile industry, which is challenged by various
difficulties – like structural technological adjustments in this traditional industry, the short
supply of resources and the increasing obligations to environmental concerns. At the same time, the
entire industry sees continuous opportunities to further upgrade its technology both for
efficacious and ecological reasons. The 2009 ITMF Annual Conference will give the opportunity for
in-depth presentations and discussions on all these aspects of the general theme, with the aim of
promoting mutual understanding, enhancing cooperation and creating new prosperity for the world
textile industry. More information is available at www.itmf.org.

July 14, 2009

DuPont Merges Three Businesses Under DuPont Protection Technologies Name

Wilmington, Del.-based DuPont has merged three business units –Advanced Fiber Systems, Nonwovens
and Personal Protection — into one unit, doing business as DuPont Protection Technologies, based
in Richmond, Va. Products and technologies offered include Tyvek® and Sontara® nonwovens, Kevlar®
and Nomex® advanced fibers, and Tychem® protective apparel, among other offerings.

“We believe we will be able to quickly simplify internal processes, increase the speed of
decision-making, and more fully leverage our large investments in research and development across
market segments,” said Thomas G. Powell, who is transitioning from vice president and general
manager of DuPont Advanced Fiber Systems to lead DuPont Protection Technologies in the same
capacity. “These changes will lead to more rapid innovation and improve our responsiveness to
customers.”

All existing production and research facilities of the previous separate businesses will
continue to operate as before, Powell said. “These … have long-standing leadership positions and
represent applications and technologies that DuPont is counting on for future growth,” he said. “We
are committed to continuing to invest in capacity and innovation to meet the current and future
needs of our customers.”



July 14, 2009

GST Receives Rescue Proposal From WL Ross Following Bankruptcy Filing

Global Safety Textiles Holdings LLC (GST) – a subsidiary of Greensboro, N.C.-based International
Textile Group Inc. (ITG) – and certain of its subsidiaries have filed for bankruptcy protection
under Chapter 11 of the US Bankruptcy Code. The company, which operates within ITG’s Automotive
Safety business unit, manufactures airbag fabric and cushions for automotive applications; and has
operations in the United States, Germany and other European locations, Mexico and China.

Subsidiaries not included in the filing include GST locations outside the United States and
the company’s Greenville-based airbag operations. Greenville-based Safety Components International
and Southampton, Pa.-based Narricot Industries LP’s narrow technical fabrics facility, which supply
certain automotive products and operate within the Automotive Safety business unit, are not GST
subsidiaries and also are not included in the filing.

As of June 30, 2009, GST, which listed assets totaling between $100 million and $500 million,
owed approximately $214 million including interest on a term and revolving loan that matured on
that date. The company also listed outstanding obligations totaling nearly $1.5 million to its top
30 unsecured creditors.

New York City-based investment firm WL Ross & Co. LLC, majority owner of ITG, has
submitted a proposal to invest $55 million in a new organization formed to acquire the assets of
GST and its subsidiaries out of bankruptcy. The firm also has committed to provide a $25 million
debtor-in-possession loan to help fund GST’s operations prior to closing of the sale.

“We are excited to make a proposal that we believe would put GST on a stable footing and
ensure that it can continue to support its key strategic customers in all the major car producing
regions globally,” said Wilbur L. Ross, chairman and CEO of WL Ross & Co., and chairman, 
ITG. “We expect that the proposed transaction with our sponsorship will be key to continuing
relationships between GST and those customers.”

“This new equity investment will enable GST to continue to support its strategic
international customers who have benefited from GST’s technological innovation and will continue to
enjoy GST’s commitment to price competitiveness and customer service,” said Georg Saint-Denis,
president, GST Europe and Asia. Stressing the need to close the transaction quickly to preserve
GST’s value, he added, “Our next step is to obtain our lenders’ consent, and we plan to recommend
that our lenders provide that consent as soon as possible.”



July 14, 2009

Huntsman Textile Effects Unveils Lanasol® Black Chrome-Free Dyes For Wool

Switzerland-based textile chemicals manufacturer Huntsman Textile Effects has introduced Lanasol®
Black chrome-free reactive dyes that produce a range of black shades on wool and other animal
fibers. Huntsman’s Miralan® LTD low-temperature-dyeing auxiliary is used with the Lanasol Black
dyes to aid application. According to the company, the Lanasol dyeing process is significantly
shortened while providing good reproducibility, minimizes damage to the fibers, and is more
cost-effective than processes using chrome.

Dyes in the Lanasol Black range include Black CE, Black CE-PV, Deep Black CE-R and Deep Black
CE-2B.

July 14, 2009

Advansa Partners With Asics To Unveil Thermo°Cool™ Eco Running Apparel

The Netherlands-based polyester fiber manufacturer Advansa has partnered with Irvine, Calif.-based
sportswear manufacturer Asics America Corp. to introduce a high-performance running apparel
collection made with Thermo°Cool™ Eco fibers. The Eco version of Advansa’s thermoregulating,
moisture-wicking Thermo°Cool technology uses a bio-based DuPont™ Sorona® polytrimethylene
terephthalate polymer rather than petrochemical-based polyester polymer.

“With Advansa Thermo°Cool Eco, we have found a product that perfectly fits with our
philosophy of innovation and functionality,” said David Chandler, vice president of Apparel and
Accessories, Asics. “Another crucial benefit, besides the unique functionality that Advansa
ThermoºCool Eco provides, is that we are also able to offer an ecological and sustainable approach
in keeping with our policy to offer more sustainable products.”

The Asics® Spring 2010 apparel line with Advansa’s ThermoºCool Eco technology will be
available at retail in January 2010.

July 14, 2009

The Rupp Report: Extra-Fine Cotton Under Pressure

The latest Bremen Cotton Report says global extra-fine cotton production fell by 42 percent to
431,000 tons in 2008/09. This drop occurred because of a decline in prices and premiums in 2007/08
and strong competition from grains. After all the financial problems around the world, this is no
surprise. Raw material plays an important part in pricing. Prices were relatively high in August
2008, but they dropped almost continuously during 2008/09 because of the sharp fall in demand and
the accumulation of stocks in producing countries. In addition, unfavorable weather at planting
time has limited the extra-fine cotton area in Central Asia.

Global extra-fine cotton production is projected to be 10-percent lower in 2009/10, at
389,000 tons – the lowest on record since the middle of the 20th century. Global extra-fine cotton
area is expected to continue to decline by 15 percent to 330,000 hectares, while the average yield
is forecast higher at 1,190 kilograms per hectare.

Ups And Downs

In 2009/10, extra-fine cotton production is expected to increase by some 7,000 metric tons
(tons) in Sudan and by 2,000 tons in Israel. In Sudan, changes in credit and payment policies in
the Gezira Scheme are expected to encourage an increase in cotton area. However, production is
expected to continue to decline by 3,000 tons in China, some 9,000 tons in Egypt, 13,000 tons in
the United States, 8,000 tons in India, 16,000 tons in Central Asia and some 1,000 tons in Peru.

Demand Dropped

The sharp drop in demand for extra-fine cotton and the increase in inventories during 2008/09
are expected to affect farmers’ planting intentions in the United States, China, India, Central
Asia and Peru. In 2009/10, the US Pima crop may be the smallest in 14 years, at 81,000 tons. In
Egypt, the expected continued production decline to 109,000 tons – the smallest crop in more than a
century – is driven by a further decline in planted area. Unfavorable weather at planting time in
Central Asia reduced production expectations to 13,000 tons.

Exports

Global extra-fine cotton export commitments for 2008/09 rose by an estimated 17,000 tons
between mid-April and mid-June 2009, reaching 129,000 tons and slightly exceeding projected
exports. As of mid-June 2008, extra-fine cotton export commitments for 2007/08 reached 421,000
tons.

The US Pima export commitments for 2008/09 rose by 12,000 tons to 44,000 tons during the past
two months, exceeding projected exports. As of mid-June 2008, US Pima sales for 2007/08 totaled
188,000 tons, also exceeding projected exports. The competitiveness payments for US Pima, which
were not available during the first half of 2008/09, became available at the beginning of February
2009 at a rate of 18 cents per pound as a result of higher prices for US Pima compared to Egyptian
Pima. As of mid-June 2009, the rate declined to 4 cents per pound.

Export commitments by Egypt for 2008/09 rose by 4,000 tons during the past two months and are
estimated to be 39,000 tons as of mid-June 2009, including 20,000 tons of carryover sales from
2007/08. Higher prices for extra-fine cotton and the world economic crisis may have caused smaller
2008/09 sales compared with the previous year.

Future Expectations

Extra-fine cotton exports by producing countries fell by almost 70 percent in 2008/09 to an
estimated 128,000 tons. They are expected to rebound in 2009/10 to 184,000 tons – a 44-percent
increase driven by higher demand, but this level is expected to remain much smaller than in the
past decade.

Inventories of extra-fine cotton in producing countries are expected to increase from 299,000
tons at the beginning of 2008/09 to 323,000 tons at the end of the season, and to decline to
275,000 tons at the end of 2009/10. The stocks-to-use ratio in producing countries is forecast to
decline from 65 percent in 2008/09 to 49 percent in 2009/10.

July 7, 2009

Panjiva Adds Three Partnerships To Panjiva Search

New York City-based Panjiva, an online provider of data on global manufacturers and suppliers, has
added three partnerships to Panjiva Search, its comprehensive web search engine for global trade,
available at
http://panjiva.com/search.

The company has collaborated with Social Accountability International (SAI) – a New York
City-based non-profit organization dedicated to socially responsible manufacturing – to introduce a
new platform that will provide companies with access to detailed information about factories that
have been certified to the Social Accountability 8000 (SA8000) gold standard, SAI’s system for
verifying a company’s social responsibility. Panjiva clients will be able to search specifically
for SA8000-certified factories.

Panjiva has partnered with deKieffer & Horgan, a Washington, D.C.-based international
trade law firm, to offer an online investigative database of global counterfeiters and diverters.
The EDDI database contains profiles of more than one million companies involved in global trade.
Companies the database considers risky will feature a red flag, and users will be able to request
details regarding the designation.

In addition, Panjiva has partnered with the Worldwide Responsible Accredited Production
(WRAP) – an independent non-profit corporation that promotes socially responsible apparel and sewn
products manufacturing- to allow Panjiva subscribers to search for WRAP-compliant manufacturers.

July 7, 2009


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