SpinExpo To Hold New York Show

The organizers of SpinExpo Shanghai – a trade fair focusing on the fiber, spinning, flat bed and
circular knitting sectors – have announced the inaugural SpinExpo New York, to be held July 20-22,
2009, at the Metropolitan Pavilion/Altman Building in New York City.

The show will feature exhibits from more than 70 companies worldwide including fiber
manufacturers; textile software producers; spinners for knitwear, circular knit and weaving
apparel; home textiles, hosiery, lacework and embroidery, fake fur and technical products;
producers of computer-aided design and manufacturing as well as common information models; office
designers and stylers; and trade publications.

Other features include complimentary consultations with SpinExpo partner Stoll USA’s
stylists and technicians about knitting complex yarns on the company’s machines; presentations and
seminars on emerging trends and upcoming market developments, offered by the Australian Wool
Innovation; a trend forum highlighting key directions in color, knitwear, development and styling
for the Spring/Summer 2010 and Autumn/Winter 2020/11 seasons; and a series of fashion shows
featuring the latest creations in knitwear styling, with collections from Germany-based Stoll,
Italy-based G. Cavagna for SpinExpo and Hong Kong Polytechnic University. 

For more information, contact Cynthia at
spinexpo-newyork@earthlink.net or visit
www.spinexpo.com.

April 7, 2009

Bloomsburg Mills To Close

Bloomsburg Mills Inc. — a Bloomsburg, Pa.-based fabric manufacturer that has been in business since
1889 — will shutter its manufacturing plants and cease operations by May 31. The closings will
affect 134 employees at its Bloomsburg weaving facility and 92 employees at its dyeing and
finishing facility in Monroe, N.C.

According to President and CEO James P. Marion III, the ongoing influx of low-cost imported
textiles and the current economic downturn have brought on the closings. “Bloomsburg Mills has lost
more than 60 percent of its sales volume during the past decade, and, as a result, we have
undergone numerous downsizings to adjust for this loss,” Marion said. “We have made considerable
progress in our efforts to restore ourselves to profitability and continue as a domestic
manufacturer, but the dramatic drop in business that we experienced at the end of calendar 2008 has
worsened, resulting in severe curtailment of our operations. The results of the first three months
of 2009 have been very poor, and, based on the current economic outlook, we cannot envision any
scenario in the foreseeable future that would enable us to return to being a profitable company on
an ongoing basis.”

The 120-year-old company was founded as a silk weaver, opening its yarn processing and
weaving mill in 1889 and the dyeing and finishing plant in 1979. Bloomsburg initially was known as
a manufacturer of high-fashion dress fabrics and later evolved into a producer of specialized
fabrics used for home furnishing, industrial, napery, medical, military, filtration and other
end-uses.

“The people who work for Bloomsburg Mills have always been second to none in their dedication
to, and excellence in, manufacturing the highest quality fabric, and it is truly sad that we have
had to reach a decision to exit this industry after so many years and cause hardship for such good
people and the communities we operate in,” Marion said. “However, like many domestic manufacturers,
we have seen most of our markets exported to lower cost foreign manufacturers, and our customer
base has finally eroded to the point where our business no longer remains viable.”

Bloomsburg Carpet Industries Inc., a woven carpet manufacturer that has been operating in
Bloomsburg for more than 30 years, is not affected by the closure of Bloomsburg Mills.

April 7, 2009

Batson Partners With Fleissner, Represents National Wire

Greenville-based Batson Group Inc. now offers Germany-based Fleissner GmbH’s spunlace and chemical
bonding systems as well as its belt and perforated drum ovens. Batson will market and sell
Flessner’s products in the United States and Canada through its representation of Charlotte-based
American Truetzschler Inc. Fleissner’s products include the AquaJet, Jumbo AquaJet, LeanJet and
MiniJet spunlace systems; a line of belt ovens for thermobonding processing; and a line of
perforated drum systems for thermobonding, drying processes, and heatsetting with or without needle
rings.

Batson also has partnered with Star City, Ark.-based National Wire Fabric Inc. to offer
metallic and man-made wires and fabrics. National Wire manufactures wires and belts featuring a
one-piece, non-welded cable construction that allows the wire to run at high speeds. Products are
constructed from combinations of stainless steel, carbon steel and bronze and include caul screens,
forming and dryer fabrics, backing wires, press screens and oven wires.

April 7, 2009

Unifi Closes On Joint Venture Sale, Focuses On UTSC Subsidiary

Greensboro, N.C.-based textured yarn manufacturer Unifi Inc. has sold its 50-percent interest in
Yihua Unifi Fibre Industry Co. Ltd., the company’s joint venture with Sinopec Yizheng Chemical
Fiber Co. Ltd. Unifi will continue providing service to its customers in Asia through China-based
subsidiary Unifi Textiles Suzhou Co. Ltd. (UTSC). UTSC develops, sells and provides technical
service for premium value-added (PVA) yarns.

“Succeeding in today’s global economic climate requires an even greater focus on supply chain
management and the development of innovative specialty yarns, and UTSC provides Unifi with the
flexibility and speed-to-market required to respond to the needs of our customers in Asia,” said
Roger Berrier, executive vice president, Unifi. “And now with the sale of our joint venture, UTSC
will continue to expand the sales and promotion of the company’s specialty and PVA products, while
aggressively focusing on global product commercialization of new and existing products.”

Unifi plans to commercialize newly developed, enhanced textile technologies in China through
UTSC. Technologies include next-generation Sorbtek® moisture-management technology, which is more
competitively priced for China, and the company’s Repreve® brand of sustainable textiles, including
Repreve polyester staple fibers for use in spun yarns. Unifi also will begin to expand its
recycling efforts in China.   

April 7, 2009

Itema And Lamiflex Strengthen Partnership

Itema Weaving – a weaving machines and accessories manufacturer, and a division of the Italy-based
International Technology & Machinery Group (Itema) – and Lamiflex S.p.A., an Italy-based
producer of technical composite materials – have signed an agreement to develop new products and
processes, and to share intellectual property rights through mutual protection strategies.

Itema and Lamiflex will distribute machinery spare parts to the international market, using
their existing commercial channels and sales networks to market and sell the products. The two
groups plan eventually to cross-license their trademarks and patented technologies. According to
the companies, this collaboration will provide improved service to their customers, including
efficiencies in response times and procedures.

“Consolidating and intensifying a collaboration with a partner such as Itema Weaving is an
opportunity to be taken,” said Francesco Corsi, manager and coordinator of the agreement, Lamiflex.
“Being present on the market in a coordinated way enhances the capability and opportunities of both
companies to face challenges, while developing new solutions at the same time.”

April 7, 2009

Maine And CARE Sign Agreement

The state of Maine has signed an agreement with the Carpet America Recovery Effort™ (CARE) – a
national carpet recycling group – to increase post-consumer carpet recycling by not sending used
carpet to landfills and through promoting the use of products containing post-consumer carpet
content.

CARE is a voluntary effort established as a result of a Memorandum of Understanding for
Carpet Stewardship, a national agreement signed by members of the carpet industry, representatives
of government agencies at the federal, state and local levels, and certain non-governmental
organizations. Approximately five billion pounds of used carpet is sent to landfills each year.
Since 2002, CARE and its network of Reclamation Partners have helped to divert more than one
billion pounds of carpet from that waste stream.

“Used carpet is a bulky waste that is difficult and expensive to manage,” said Maine
Department of Environmental Protection Commissioner David P. Littell. “Maine looks forward to
adding the recycling of carpet to our efforts in developing alternatives to disposal in landfills.”

Maine will encourage carpet recycling by looking for opportunities to reclaim post-consumer
carpet removed from government buildings and by using environmentally friendly carpet pad made from
recycled carpet fiber under new carpet installations.

“CARE welcomes Maine into the growing fold of states willing to support CARE’s voluntary
efforts to find market-based solutions for the diversion of post-consumer carpet from landfills.”
said Frank Hurd, chairman of CARE’s Board of Directors.

April 7, 2009

Consumer Safety Agency Calls For Children’s Products Labeling

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 Rupp Report: Tough Times For The Rieter Group

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

Texkimp Expands

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

US, Indian Diplomats Visit Sri Lankan Apparel Plant

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

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