Fiberweb Completes Bethune Spunlace Upgrade

London-based nonwovens manufacturer
Fiberweb plc has completed the upgrade of its spunlace line at its Bethune, S.C., facility. The
upgrade expands the company’s fiber capabilities, enabling it to produce a wide range of spunlace
fabrics containing not only rayon, polyester and polypropylene, but also cotton and Tencel® fibers.

Fiberweb expanded the capabilities at Bethune in order to meet market demand for more
natural-fiber-based baby, personal-care and home-care wipe applications. In addition to
manufacturing specialty carded and spunlace roll goods for those applications, that facility also
produces case goods for graphics arts applications.

“This demonstrates Fiberweb’s intention to make selected investments that meet emerging
needs in the marketplace for tailored nonwovens that deliver real benefits to consumers,” said Dave
Rousse, president, Fiberweb Hygiene/Medical Americas.

December 5, 2006

ITMF’s Strolz To Retire At Year’s End

Herwig M. Strolz, J.D., director
general of the Switzerland-based International Textile Manufacturers Federation (ITMF), will retire
at the end of 2006, having logged 37 years of service to the organization.

A native of Austria, Strolz graduated in 1961 from the University of Vienna as a doctor in
law. The following year, he joined the foreign trade department of the Austrian Federal Chamber of
Commerce; and in 1963 was named Austrian Trade Commissioner in Caracas, Venezuela. In 1968, he
moved on to the Austrian Foreign Trade Office in Montreal. That same year, Strolz was named
director of the Austrian Federation of Industries and also managed the textile and clothing
department of the Chamber of Commerce of Vorarlberg, Austria.

Strolz’s career at ITMF began in 1970, when he became director of the Switzerland-based
International Federation of Cotton and Allied Textile Industries, which changed its name to
International Textile Manufacturers Federation in 1978. Under Strolz’s leadership, the federation
has become the foremost global trade association for the basic textile industry, currently counting
among its membership textile trade associations and other entities from nearly 50 textile-producing
countries.

In recognition of his leadership in the global textile industry, Strolz received the
Schlafhorst Foundation’s Golden Jenny Award in 1991 and was named Textile World’s Leader of the
Year in 2001.

Dr. Christian Schindler, currently director, ITMF, has been named to succeed Strolz as the
federation’s director general. Schindler, a native of Germany, earned his doctorate from the
University of Cologne, Germany, where he studied at the Institute for Economic Policy. He joined
ITMF in 2004 as the federation’s economist.

December 5, 2006

Optimer, Safety Systems Partner To Develop FR Version Of Dri-release®

Optimer Performance Fibers,
Wilmington, Del., has developed a version of its dri-release® hydrophobic/hydrophilic
moisture-management fiber-blend technology for a fabric that includes hydrophobic, inherently
flame-resistant (FR) modacrylic and hydrophilic viscose. The new technology is offered exclusively
by Safety Systems Corp. — a Roselle, Ill.-based provider of tactical equipment to military,
fire-services, law-enforcement and industrial markets — in its driFIRE™ performancewear line of
silk-weight short- and long-sleeved T-shirts, boxers and a long pant. Incorporated into fabrics
knitted by Cleveland, Tenn.-based United Knitting, the new blend is a comfortable, lightweight,
non-melting, moisture-wicking and fast-drying fabric solution for use by military and public safety
personnel who might be exposed to flash fires caused by explosive devices or other such sources.

Safety Solutions contacted Beth Moore, managing director of operations, Optimer, in its
search for a solution to problems presented by polyester-based moisture-wicking fabrics, which
could melt and fuse to the skin when subjected to the sudden extreme heat and flames caused when an
explosive device is detonated — causing more serious injury than would occur otherwise. Because of
this hazard, the US Marine Corps earlier this year had prohibited wearing of polyester and
nylon-based performance clothing outside forward operating bases and camps in Iraq.

“It took two years in development, but the result is everything that Safety Systems asked
for,” Moore said. “In addition to its typical moisture-management capabilities, the new dri-release
FR version is not only self-extinguishing, it quickly turns to ash and most definitely, does not
melt or drip.”

The new driFIRE products also include FreshGuard®, Optimer’s environmentally friendly
odor-neutralizing technology, which is added to all dri-release fabrics.

Safety Systems also will introduce mid- and heavyweight undergarments as well as a fleece
vest, jacket and hat in Spring 2007.



December 5, 2006

Techtextil, Tensinet Announce Textile Structures Student Competition

Techtextil — International Trade Fair
for Technical Textiles and Nonwovens, organized by Frankfurt-based Messe Frankfurt and scheduled to
be held in Frankfurt June 12-14, 2007, and TensiNet — a Brussels-based international association
for parties interested in the construction of tensioned structures — have made a call for entries
to the 9th Competition for Students for Textile Structures for New Building. Targeted to students
of architecture, civil engineering, product design and related disciplines; as well as graduates of
those disciplines who completed their studies after Jan. 1, 2006, the competition has a submission
deadline of January 31, 2007.

Competition objectives include: the exposition of practical innovative concepts and problem
solutions concerning the use of textiles and textile-reinforced materials in buildings; support and
assistance for students and newcomers in the sector; and promotion of contacts among students,
universities, the technical-textile industry and building industry sectors. Werner Sobek, a
professor at the Institute for Lightweight Structures and Conceptual Design, University of
Stuttgart, Germany, is scientific director of the competition and chairman of the international
jury that will evaluate the competition. Prize money totaling 8,000 euros will be awarded during
Techtextil in the categories of macro-architecture, micro-architecture, environment and ecology,
and composites and hybrid structures.

Competition rule details may be found at
www.techtextil.com. For more information,
contact Katrin Müller 49 69 7575 6553; fax 49 69 7575 96553; katrin.mueller@messefrankfurt.com.

December 5, 2006

A Strong Finish


O
ne major topic of discussion currently is Parkdale’s plant in Honduras and what it means
for the industry. There is much speculation among spinners about whether other companies will
quickly follow and open plants in the Central America-Dominican Republic Free Trade Agreeement
(CAFTA-DR) region.

“Everyone is playing it close to the vest,” said a multisystem spinner. “One question is,
what can companies afford to do? Putting up a spinning plant is a major endeavor for anyone. You
are talking $40 million to $50 million.”

Other subjects on mill managers’ minds include simple survival and a lack of direction from
retailers about early 2007.

“We are just trying to figure out what everyone else is doing,” said a ring spinner.


Happy, But Wary

Several spinners reported strong
running conditions and planned to take the usual one week or slightly longer shutdown over the
Christmas holiday. At the same time, one industry observer reports many spinners will be taking
extended production breaks. The truth, as usual, is probably somewhere in between.

One multisystem spinner described his running conditions as “surprisingly good for fourth
quarter.” Another noted that his plants are all currently running 24/7.

One specialty ring spinner summed up the year and the fourth quarter by saying, “We are
quite pleased with the overall volume of business for 2006, and we have been pleasantly surprised
to have our business hold up well during the fourth quarter, which traditionally becomes a slow
period.”

This month’s discussion about the business outlook quickly became a contest to see who could
come up with the best new way to say “cautiously optimistic.”

Military business is on the wane and
has been for some months. At least one spinner mentioned doing good business with weavers. Another
reported gaining business in the nonmilitary uniform area. Companies continue to shift more to
nonapparel applications. There has also been slightly higher demand for technical fiber
yarns.



Fiber And Yarn Pricing

Spinners have been reasonably happy
with cotton prices, which have been relatively stable throughout the year. On the man-made fiber
side, they are still waiting for the express elevator that prices have been riding skyward to stop
and start back down.

One multisystem spinner reports he is “waiting patiently for man-made fiber prices to fall
in line with oil prices.” He also mentioned that spinners have few options because they cannot
hedge man-made fibers or economically buy the chemicals and make the fibers themselves. He summed
up the situation by saying “you can’t fight city hall.”



Balancing The Export Equation

By and large, spinners are optimistic
about current and future export business, especially CAFTA-DR opportunities.

“Exports to Central America continue to increase, and we expect these opportunities to
continue,” said a specialty ring spinner. “We are hopeful to increase our distribution in South
America during 2007.”

At least one mill executive expressed profound concerns about the recent agreement with
Haiti.

The Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 or, HOPE,
allows Haitian textile manufacturers to include yarns and fabrics from China in garments exported
duty-free to the United States while other countries must use regionally made yarns and fabrics.

“The Haiti legislation will destabilize the region,” he predicted.


December Cotton Crop Numbers

The US Department of Agriculture
(USDA) December forecast of the 2006 cotton crop remains at 21.3 million bales, about 11 percent
below last season’s record. The national yield was unchanged at 798 pounds per harvested acre.
Upland production is projected at nearly 20.6 million bales in 2006/07, down from last year’s 23.3
million.

The extra-long staple crop is projected to increase nearly 100,000 bales, to 729,000 bales.
A larger area in California this season accounts for the gain. Compared with last month, crop
estimates for three of the four regions were lower – the Southeast provided the only increase in
December.

According to the USDA, total classings through the week ending December 7 were approximately
15.8 million running bales. Nationally, 93.4 percent of the crop graded 41 or better, well above
the five-year average of 84.1 percent. The national average staple length thus far is 35.1, up
slightly from the five-year average of 34.9. Average staple length is higher than the five-year
average in all regions. Nationally, the average strength for the crop is 29.3 grams/tex, higher
than the five-year average of 28.9 grams/tex. National average micronaire is 44.6, equal to the
five-year average. With regards to uniformity, the 2006-07 crop is slightly higher than the
five-year average of 81.0.



December 1, 2006

Rieter Sells Cabling, Twisting And Texturing Machinery Operations To Co-Martin

Switzerland-based Rieter Group has
sold its France-based cabling, twisting and texturing machinery operations to France-based
Co-Martin, a specialist in the man-made fiber sector, for an undisclosed price. In conjunction with
the sale, the location in Valence, France — formerly known as Rieter Textile Machinery France SAS —
has changed its name to Research Innovation Textile Machinery (RITM).

RITM operations will continue under Carlos Matas and Noel Paul, chairmen and former
managers, ICBT; and Managing Director Frédéric Belval.



November 28, 2006

Santex Project + Sales Becomes Swisstex Machinery

Effective Dec. 31, 2006,
Switzerland-based Santex Project + Sales will end its cooperative marketing and sales operation for
the Santex Group, which will take over the sale of Santex textile machines in its own sales
organization, Santex Group International AG in Tobel, Switzerland.

From Jan. 1, 2007, Santex Project + Sales will cease to exist. The newly founded Swisstex
Machinery Inc., based in Pfaffhausen, Switzerland, under the direction of Uwe J. Sick — until this
time project and sales director, Santex AG — along with current Santex Project + Sales associates
and with support from a network of experienced specialists, will focus on complete textile
finishing projects including, in particular, new knitted fabric finishing plants, extensions and
modernizations. Project packages will include production systems, infrastructure, a range of
engineering services, building services, automatization, logistics, and plant maintenance.

November 28, 2006

Trützschler Acquires Fleissner

Germany-based spinning and nonwovens
machinery manufacturer Trützschler GmbH has acquired Germany-based nonwovens and man-made-fiber
machinery manufacturer Fleissner GmbH from Frankfurt-based technology and plant engineering
provider Zimmer AG for an undisclosed price.

Until its acquisition by Zimmer in 2003, Fleissner was a family-owned company founded in
1848 originally as a blacksmith’s workshop. In the ensuing years, the company grew to include an
iron foundry, and soon began to provide products to various sectors of the local textile industry.
Today, it specializes in aqua-jet entangling lines for the nonwovens sector, man-made staple fiber
production lines, through-air drying lines and textile finishing lines.

Hans-Georg Buckel and Jürgen Heller, Ph.D., will continue as managers of Fleissner, which
currently employs 350 people.

The Trützschler Group, which has subsidiaries in six countries and some 2,200 employees
globally, acquired shares of Germany-based nonwovens machinery manufacturer Erko in 2005. According
to Trützschler, Fleissner’s product line, particularly for the nonwovens sector, will complement
the Erko Trützschler line of nonwovens machinery, enabling the supply of complete lines for that
sector.

Trützschler also produces nonwovens machinery in the United States at its Charlotte-based
subsidiary, American Truetzschler, which also services the machinery. It also maintains production
and service operations in Brazil, China and India.

November 28, 2006

Hanesbrands To Close Puerto Rican Plant Move Production To Caribbean Basin

Hanesbrands Inc., Winston-Salem,
N.C., announced it will close its textile manufacturing plant in Ponce, Puerto Rico, by the end of
January 2007 and move that production to existing lower-cost production facilities in the Caribbean
basin. Approximately 500 employees at the Ponce facility, which makes fabric for T-shirts and
underwear briefs, will lose their jobs.


The move is part of the company’s
supply chain strategy to transfer manufacturing operations to lower-cost regions in the Western
Hemisphere and ultimately to balance those operations with manufacturing in Asia.

“Moving production from Ponce to the Caribbean basin is necessary to improve Hanesbrands’
efficiency and competitiveness,” said Gerald Evans, executive vice president and chief global
supply chain officer, Hanesbrands. “As part of our multiyear supply chain improvement strategy,
Hanesbrands is ramping up high-volume, lower-cost production in new textile manufacturing
facilities in Central America and the Caribbean basin.”

Evans expressed regret for the loss of jobs in Ponce, adding, “We have a good workforce in
Ponce, but this move is an economic necessity for our organization overall in today’s competitive
global market and does not reflect the quality and dedication of the Ponce workforce.”

The planned closure of the Ponce facility follows previously announced plans to close two
plants in the Carolinas and one in Mexico and move most of that production to Central America and
the Caribbean basin, and to consolidate three US-based distribution centers. The company also
announced recently it has signed an agreement to purchase its first manufacturing facility in Asia
– a sewing plant in Thailand.

US-China Commission Finds Fault WIth Chinese Trade

The US/China Economic and Security
Review Commission has sent Congress its annual report, citing what it calls “troubling trends” as
China fails to live up to its international obligations as a major economic power. As the report
was released, the commission’s chairman, Larry M. Wortzel, said, “[W]hile China is a global actor,
its sense of responsibility has not kept up with its expanding power.”

The 12-member bipartisan commission was created by Congress to investigate and analyze US
relations with China and make recommendations to Congress and the administration with regard to
economic and national security implications of the US/China relationship. During this past year,
its members met with Chinese government and communist party officials, Chinese business leaders,
American diplomats and American business people working in China.

The commission’s report contains 44 recommendations, several of which are related to trade
in textiles and other manufactured products. Chairman Wortzel said that while China has
demonstrated it understands its obligations to the 149 other countries in the World Trade
Organization (WTO) and has made considerable progress in writing internal legislation and
regulations, it is “falling short on its implementation of new laws and regulations and is failing
to adequately enforce laws already on the books.” He said this is particularly true with respect to
protection of intellectual property rights. Wortzel said Congress needs to urge the US Trade
Representative to press ahead “ aggressively” with cases against China’s failure to enforce
intellectual property rights.

In connection with other international trade issues, the commission pressed particularly
hard for action to address China’s currency manipulation. In that regard, the commission
recommended that Congress urge the administration to take to the WTO and the International Monetary
Fund a complaint about China’s manipulation of currency. It also recommended that Congress pass
legislation to modify requirements for the Treasury Department’s biannual report on countries that
practice currency manipulation, making it clear that countries that artificially peg their currency
in order to gain a trade advantage are violating international trade rules. In addition, the
commission urged Congress to pass legislation granting the US Department of Commerce authority to
impose countervailing duties against products imported from nonmarket economies.

Auggie Tantillo, executive director of the Washington-based American Manufacturing Trade
Action Coalition, which represents a number of manufacturing industries, including textiles, said
the incoming Congress needs to seriously consider the commission’s recommendations and “act
appropriately,” adding that Congress needs to hold the Bush administration accountable for “
failures in its China policy.” He said a good first step would be enactment of legislation to
combat currency manipulation.

In 2005, the United States had a record $202 billion trade deficit with China, and it
appears 2006 is headed for a 10-percent increase over last year.

November 21, 2006

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