The Consumer Product Safety Commission (CPSC) has asked for comments on a proposed rule that would
require manufacturers of children’s products to place permanent labels on products and packaging
that would help facilitate recalls of unsafe products. Comments will be received until April 27 on
the regulation, which is scheduled to go into effect Aug. 14, 2009.

Under the proposed rule, labels would provide information about the date and place where a
product is made. In issuing the proposal, CPSC said that to the extent a uniform approach to
labeling can be developed, consumers would be better informed in the event of a product recall.

CPSC is seeking guidance from manufactures with respect to the practicability of labeling
and other business considerations, including suggestions as to how the rule can be implemented.

The text of the proposal is in the February, 2009, Federal Register Vol. 74 No. 37. For
further information, contact CPSC +301-504-7923.

March 31, 2009

The adverse effects of market trends resulted in a steep decline in orders received and sales by
the Switzerland-based Rieter Group, mainly as a result of fewer orders at Textile Systems.
Consolidated sales declined 20 percent, a less precipitous drop than orders received, and totaled
3,142.5 million Swiss francs, compared with 3,930.1 million Swiss francs in 2007. This was mainly a
result of the high level of orders in hand for textile machinery at the beginning of 2008, and a
proportionately smaller decline in Automotive Systems sales. Exchange rate movements had a negative
impact amounting to some 3 percent.

Structural And Cyclical Factors

The operating result before interest and taxes showed a loss of 312.1 million Swiss francs –
after a record 2007 outcome of 278.7 million Swiss francs. At the end of 2008, Rieter’s global
workforce totaled 14,183, down 9 percent from year-end 2007. Rieter posted negative financial
results in 2008, with a net loss of 396.7 million Swiss francs including special charges, compared
to a net profit of 211.5 million Swiss francs in 2007.

Textile Systems

The trend of business at Rieter Textile Systems in 2008 was dominated by a cyclical downturn
on the global textile machinery market, and, said Rieter CEO Hartmut Reuter, “it is of an intensity
and rapidity that had not been experienced by the industry for decades.” The division posted an
operating loss of 49.5 million Swiss francs for the 2008 fiscal year. Orders totaling 539.5 million
Swiss francs were 68-percent lower than in 2007, when they totaled a record 1,703.1 million Swiss
francs; this decrease was also partly a result of order postponements.

Sales totaling 1,120.4 million Swiss francs for the year were 28-percent lower than
year-earlier sales of 1,566.8 million Swiss francs. However, Rieter claims it is maintaining its
leadership in the market segments served by Textile Systems. The operating result before special
charges, interest and taxes totaled 41.3 million Swiss francs, representing 4.1 percent of
corporate output, compared with 200.7 million Swiss francs or 13.1 percent in 2007.

Automotive Systems

High fuel prices along with cyclical and structural problems in the automobile industry
brought on a substantial reduction in vehicle production in North America in the first half of
2008; and by autumn, the downturn also affected European and South American – and to a lesser
extent, Asian – manufacturers. Rieter Automotive Systems’ 2008 sales totaling 2,022.1 million Swiss
francs, compared with 2, 363 million Swiss francs in 2007, were 10-percent lower in local
currencies – down 14 percent in nominal terms – as a result.

However, Textile Systems Enjoy Demand…

Rieter Textile Systems continues to see considerable potential for the future in the populous
markets of India and China, in which the largest yarn manufacturing capacity worldwide is
installed. According to Hartmut Reuter, manufacturing in China and India is significant. A
drawframe “Made in China” is available and enjoys good demand. The division is pursuing its
strategy of expanding its presence in these regions. The air-jet spinning machine introduced last
year is said to have proven its qualities in operations at initial customer mills. This machine can
produce good-quality yarns for a wide range of textile end products at much lower cost than with
other existing spinning processes, according to Rieter.

…And Automotive Systems Is Not For Sale

Automotive Systems invested in new locations in which major customers are installing
manufacturing facilities, such as Eastern Europe and Asia. It worked intensively on further
applications of its innovative Rieter Ultra Silent fiber material, with such products meeting
several modern automotive engineering requirements including being lighter-weight and recyclable;
and, indirectly, leading to carbon dioxide reduction. And, as always in these tough times, there
are rumors going around the markets: No, said Rieter, the automotive business unit will not be
sold, and this was never taken into consideration.

Despite the difficult overall economic conditions, Rieter succeeded in maintaining its market
position in both divisions and even expanding it in Latin America. Both Rieter divisions have a
broad basis in terms of their products and customer relationships. The company remained on a good
financial foundation at the end of 2008, with an equity ratio of 36 percent, compared with 48
percent in 2007, and low net debt of 37 million Swiss francs, whereas it has a net liquidity of 145
million Swiss francs in 2007. Year-end cash and cash equivalents amounted to 283 million Swiss
francs, compared with 258 million Swiss francs in 2007.

Outlook

The year 2009 will be challenging, and not only for Rieter. Cost savings take clear priority.
As in the past, Rieter is focusing in a conservative way on its cash flow and equity. The prospects
for the automotive and the textile machinery industry are uncertain thanks to the global recession,
and the company expects demand will decline in both divisions. Maintaining a sound balance sheet
and adequate liquidity are top priorities. In the medium term, Rieter expects increased demand at
both Textile Systems and Automotive Systems in line with global trends.



March 31, 2009

England-based unwinding creels manufacturer Texkimp Ltd. is expanding. The company has relocated to
Swan House, a new 18,500-square-foot facility that houses a factory as well as the headquarters of
its parent company Cygnet Group Ltd. Over the last four years, Texkimp has doubled in size and now
employs approximately 50 people and has revenue of more than 9 million euros. The company not only
is growing in the textiles business but also is expanding into the field of engineering, including
threadless pipe joining technology for marine oil and gas applications.

Texkimp has seen an increasing demand for its VHD-F creel, as well as for other creels that
support bobbins weighing 300 kilograms or more. It soon will install a 432-bobbin version of the
VHD-F creel at a United States-based company that will use the creel for unwinding
polyacrylonitrile, which then will be oxidized and converted to carbon fiber. Texkimp also has
customers for the VHD-F creel in China, Turkey, and Taiwan, and exports 99 percent of its products
to countries including China, Vietnam, India, Korea, Russia, Poland, Iraq and Saudi Arabia. Last
year, the company partnered with Germany-based Karl Mayer Textilmaschinenfabrik GmbH to manufacture
tape creels
(see ”
Karl
Mayer, Texkimp Announce Partnership,” July 8, 2008).

Texkimp says it also sees new opportunities in large yarn packages. The company reports it
has a full order book for 2009.



March 31, 2009

Diplomatic envoys from the United States and India recently visited Sri Lanka-based Brandix
Apparel, a manufacturer specializing in a variety of apparel products for such brands as Marks
& Spencer, Gap®, Lands’ End and Victoria’s Secret. The US delegation included Ambassador Robert
Blake Jr.; his wife Sofia Blake; Vice Consul Emily J. Hicks; and Kami Witmer, chief of economic and
commercial affairs at the US Embassy in Colombo, Sri Lanka. Alok Prasad, Indian high commissioner,
also toured the plant.

The Brandix facility is platinum-rated by the Leadership in Energy and Environmental Design
(LEED) rating system established by the US Green Building Council. According to Brandix, it is the
first apparel manufacturing facility in the world to achieve a platinum rating after scoring 76 on
the 85-point scoring system, in which 64 is required for platinum status. The company has reduced
its carbon emissions by 80 percent and water consumption by 70 percent, has realized energy savings
of 46 percent, and sends zero solid waste to landfill. 

“Brandix was most pleased to host the American and Indian envoys on a visit to the Green
Plant,” said AJ Johnpillai, Brandix director. “Such visits by eminent and influential personalities
serve the very important purpose of creating better awareness overseas of our commitment to
environment-friendly manufacture and are beneficial to the apparel industry as a whole.”

March 31, 2009

France-based NSC nonwoven reports the addition of Isodynamics to its ProDyn® and Profile
crosslapper technologies enables production of crosslaid nonwoven roll goods that exhibit uniform
physical properties including weight and tensile properties, while also reducing production costs.
According to the company, IsoProDyn® eliminates the need to average tensile and elongation values
across a needlepunched fabric and to produce thicker felts in order to achieve minimum weight
standards and desired overall performance criteria for a given end-product; and IsoProfile®
improves cross-directional weight uniformity over that achieved using traditional profile
batt-shaping technology. IsoProfile also can be retrofitted to existing needlepunch lines that do
not feature ProDyn capabilities in order to improve uniformity.

Recent IsoProDyn installations at Belgium-based Bonar Technical Fabrics NV and Summerville,
S.C.-based Thrace-Linq Inc. are being used to produce geotextile nonwoven felts.

Automotive applications such as molded felts also can benefit from improved uniformities
offered by Isodynamics, NSC nonwoven reports.

Download
NSC nonwoven’s complete report on its IsoProDyn and IsoProfile technological innovations.

March 31, 2009

Japan-based Asahi Kasei Fibers Corp. has announced plans to close its polyester fiber and
monofilament plants by the end of September 2009. Difficulty reaching profitability for these
plants resulting from a variety of factors, including increases in the price of petroleum-based
feedstock and a decline in global demand in recent years, were cited as reasons for the closures.
The company intends to transfer all affected employees to other positions within the Asahi Kasei
Group.

Japan-based Teijin Fibers Ltd. will assume production of Asahi Kasei’s specialty polyester
yarns, and the production and sale of its monofilaments will transfer to Uniplas Corp., Japan. The
changes mark Asahi Kasei’s exit from the monofilaments business.

Going forward, the company will focus management resources on its core businesses – Roica™
elastic polyurethane filament, Bemberg™ cupro regenerated cellulose fiber, nonwovens and Leona™
nylon 6,6. Asahi Kasei also will focus on the development of knit fabrics for activewear end-uses
such as swimwear and athletic wear.

Teijin will supply Asahi Kasei with polyester fiber, such as Technofine™, for its knit
fabrics on an original equipment manufacturer basis. In April 2010, Asahi Kasei intends to cease
production of its Impact™ and other woven fabrics for activewear and 100-percent polyester lining
fabrics. Teijin will assume the production and sale of these products. In addition, Asahi Kasei’s
sales activities for other polyester yarns and products not to be transferred to Teijin will cease
by the end of March 2010.

March 31, 2009

Japan-based Teijin Fibers Ltd. has launched Eco-A-Wear™, the first environmentally friendly
polyester and wool blend fabric. According to the company, the fabric, which contains Teijin’s
Ecopet® fiber – a recycled polyester made from used plastic bottles – has a soft hand and is
wrinkle-resistant. Eco-A-Wear fabric is being used to make suits and trousers, and also can be
blended with viscose or cotton. Select apparel products made with Eco-A-Wear can be machine-washed,
eliminating the need for dry-cleaning.

“Interest in sustainability has grown with the consumer more aware about waste output,” said
Moses Cohen, business development and project manager at New York City-based N.I. Teijin Shoji Co.
Inc. “At Teijin, we’re dedicated to create products that are as economically advantageous as they
are ecologically sound. We are very committed to solving the problem of waste and through our
research and development have invented a process that utilizes disposed plastic bottles to create
fashionable fabric. It has taken Teijin two years to perfect Eco-A-Wear and now we are bringing it
to market.”

March 31, 2009

Rouse Enterprises LLC, Charlotte — established as a manufacturers representative in July 2008 by
textile industry veteran David T. Rouse — now represents Universal Fibers Inc., a Bristol,
Va.-based manufacturer of solution-dyed man-made-fiber carpet yarn. Rouse will provide sales,
marketing and other services for Universal Fibers. 

March 31, 2009

Dalton, Ga.-based carpet manufacturer and floor covering supplier Shaw Industries Group Inc. has
announced plans to shut down its Plant 07 spun yarn facility in Calhoun, Ga., and Plant WL filament
yarn facility in Valdosta, Ga., because of decreasing demand for certain flooring products in the
housing market. The two plants, which together employ approximately 600 people, will stop
production over the next several weeks.

Shaw will work to transfer employees to positions at its other locations as they become
available, and will partner with the Georgia Department of Labor to offer counseling, outplacement
assistance and retraining. The company also will work with regional employers to help impacted
employees who do not relocate to other Shaw plants find new work opportunities.

March 31, 2009

Newark, N.J.-based life sciences company BioNeutral Group Inc. has formed a wholly owned subsidiary
to commercialize its combinational chemistry-based technology for neutralizing hazardous
environmental contaminants, toxins and micro-organisms in surface, water and airborne applications.
Advanced Bio-Fiber Treatments Corp. will concentrate on treating fibers and textiles with Ogiene™,
BioNeutral’s anti-chemical technology to eliminate chemicals such as formaldehyde, and Ygiene™, its
antimicrobial formulation.

“Ogiene and Ygiene can be used in the treatment of fibers and textiles for a market which is
becoming increasingly concerned about dangerous chemicals and pathogens which attach to clothing,
especially [consumers] who are at high risk for such exposures or where markets place an emphasis
on these concerns,” said Dr. Andy Kielbania, chief scientist.

“For people who are prone to sores, allergies to certain textiles, chemicals, and pathogens
found in garments and for those who come into contact with bodily fluids, the ongoing protection
provided by Ogiene and Ygiene could prove an important element in maintaining personal and family
health,” said Stephen J. Browand, president and CEO, BioNeutral Group. “There is an existing market
selling garments to diabetics, athletes, students, children and those who are recuperating from
medical treatments and this is a billion dollar market which we intend to enter.”

March 31, 2009