BASF Teams With Taiwan Textile Institute

Shanghai-based BASF (China) Ltd., a
part of Germany-based BASF AG, has signed a partnership agreement with the Taiwan-based Taiwan
Textile Research Institute (TTRI), which offers research and development and other services to the
Taiwanese and East Asian textile industry. As part of the agreement, BASF will customize its
water-based Lurapret® textile coatings for specific applications, in the hopes of providing new or
improved product properties to customers in that region.

In addition, the two partners will provide technical services and support to the region’s
textile industry.

The partnership with TTRI will give BASF a “competitive edge” in the market, according to
Fransis Chadikun, head of Performance Chemicals for Textiles, BASF Greater China. “In return,”
Chadikun added, “the advantages of customized Lurapret textile coatings in quality, efficiency and
eco-friendliness will enable our customers to achieve a better market position.”

Shin-Chuan Yao, president, TTRI, said the two organizations would develop symposiums related
to technical coatings, laminating and hot-melt applications. “Most importantly,” said Yao, “ … the
cooperation will serve as the front lines in the effort to help upgrade Taiwan’s industrial
technology, design and manufacturing ability in the coatings, lamination and hot-melt industries.”&
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March 21, 2006

PGI Posts Record Sales

North Charleston, S.C.-based
nonwovens producer Polymer Group Inc. (PGI) reported record net sales of $948.8 million for fiscal
year 2005, a 12.3-percent increase over fiscal year 2004 sales. The company cited higher volumes
sold into both consumer and industrial markets, and improved price/mix of sales, which partially
offset the effects of increased raw material costs. Fourth-quarter (Q4) 2005 sales, at $240.4
million, were 7.6 percent higher than year-earlier Q4 sales.

The company posted a gross profit for 2005 of $161.5 million — 5.2-percent higher than its
year-earlier profit. Q4 2005 gross profit was lower than in Q4 2004, due primarily to raw material
price increases occurring in the wake of the major hurricanes that battered the US Gulf Coast last
summer.

PGI’s 2005 $7 million net income was 48.9-percent higher than 2004 net income.

James L. Schaeffer, CEO, noted PGI’s expansion efforts during 2005 will help the company
continue its growth into 2006 and beyond. The company installed a spunmelt line at its
Colombia-based facility and a chemical bond line in China. It also began construction of two large
projects in the United States and China that are slated for completion in 2006.


March 21, 2006

Lees Expands Manufacturing Plant

Kennesaw, Ga.-based Lees Carpets, a
division of Calhoun, Ga.-based Mohawk Industries Inc., is to invest $26.6 million to expand its
manufacturing plant in Glasgow, Va. The expansion of the facility, which comprises 33 acres under
one roof and employs more than 1,200 people, will create at least 25 new jobs and require
retraining for 150 existing jobs.

The Glasgow plant, located in Rockbridge County in Virginia’s Shenandoah Valley, is a fully
integrated facility, from yarn manufacturing and dyeing to tufting and finishing carpet including
modular and broadloom carpet for commercial applications. Earlier this year, the facility received
ISO 14001:2004 certification for its environmental management system.

“We are pleased to announce the expansion project for our Glasgow Facility,” said Lane
Leonard, plant manager, who declined to provide details of the planned expansion. “Since 1935, Lees
and Rockbridge County have had a strong relationship. The loyalty and talents of the thousands of
people who have supported Lees, and now Mohawk, were important criteria in our site selection
decision. This expansion ensures the continued growth of the commercial carpet operation in Glasgow
for years to come.”

The Virginia Economic Development Partnership and the Rockbridge Partnership worked together
to secure the project. A $40,000 grant from the Governor’s Opportunity Fund is providing Rockbridge
County with assistance related to the project; and a $100,000 grant from the Virginia Investment
Partnership program provided an incentive to Lees to close the deal. The company will receive
training and retraining assistance from the Virginia Department of Business Assistance through its
Workforce Services Jobs Investment Program; and rail access funding is available to the company
from the Virginia Department of Rail and Public Transportation.


March 14, 2006

Carolina Mills Exits Finishing, Weaving

Carolina Mills Inc. reports it will
now focus on its yarn manufacturing and sales business domestically and internationally as well as
opportunities outside of the textile sector, leading to the closure of the Maiden, N.C.-based
textile manufacturer’s Finishing Division and Weaving Division. The company expects to lay off
about 223 employees as a result.

Valdese, N.C.-based Plant No. 9 — a dyeing and finishing facility for industrial, apparel
and upholstery fabrics — will close by April 30, 2006. Likewise, Newton, N.C.-based Carolina
Specialty Fabrics, Plant No. 3, which manufactures woven fabrics for apparel, commercial and
industrial products, is set to close by May 31, 2006.

“It is clear that the continuing flood of low-priced imported products and skyrocketing fuel
costs have irreparably damaged the domestic customer base for our woven fabrics and fabric dyeing
and finishing services,” said Steve Dobbins, president and CEO. “Therefore, we have no choice but
to exit these market segments.”


March 14, 2007

Hayes Seeks To Expand Buy America Law

Robin Hayes, R-N.C., has introduced
legislation that will require the Department of Homeland Security (DHS) to procure items directly
related to security from domestic manufacturers. Under the so-called Berry Amendment, the
Department of Defense (DOD) and the Coast Guard already are required to do so to the extent
domestic manufacturers can meet their needs.

In introducing the new measure, Hayes said: “Expanding our ‘Buy America’ rules to DHS is a
matter of matter of national security. Currently, the Berry Amendment seeks to guarantee the United
States military has a ready mobilization base of US manufacturers — a critical national security
requirement. I believe it is imperative that we expand this requirement to include the Department
of Homeland Security for the same reasons.”

For years, Hayes, along with other textile state representatives and senators, has been
instrumental in getting the DOD “Buy America” provisions through Congress, something that has been
of considerable benefit to domestic textile and apparel manufacturers.

March 14, 2006

AFA Awarded Appalachian Regional Commission Grant For Domotex Program

The Dalton, Ga.-based American
Floorcovering Alliance (AFA) recently received a grant from the Appalachian Regional Commission — a
federal/state partnership that works with the people of Appalachia to create opportunities for
self-sustaining economic development and improved quality of life. The grant is to be used for AFA’s
export initiative program for Domotex 2007 in Hannover, Germany.

Domotex, a leading floor covering trade show, is an important venue for floor covering
companies to showcase their products in an international setting. AFA states that the grant will
help create and sustain jobs in northwest Georgia, particularly small companies who find it
difficult to participate in international trade shows.

“From our many years of experience at Domotex, we know that if small Georgia companies can
afford to go, it will generate sales, expand their overseas distribution and create jobs,” said
Wanda Ellis, executive director, AFA.

To secure the grant, Ellis worked with Robert Erwin, International Trade Center consultant,
University of Georgia Small Business Development Center; Rick Martin, senior international trade
specialist, Georgia Department of Economic Development, International Trade Division; and the staff
of the North Georgia Regional Development Center, Dalton.


March 14, 2006

Propex To Sell Plant To Aladdin

Austell, Ga.-based Propex Fabrics Inc. has agreed to sell its Roanoke, Ala.-based Roanoke Mills
plant to Aladdin Manufacturing Corp. – Calhoun, Ga.-based Mohawk Industries Inc.’s manufacturer of
the Aladdin by Mohawk brand of residential carpet. The companies expect the sale, which is subject
to regulatory approvals, to be completed in early April 2006.

About 470 employees currently produce secondary carpet backing at the Roanoke site.

“Propex has been a major supplier of
secondary backing to Mohawk,” said Jeff Lorberbaum, chairman and CEO, Mohawk. “They have earned a
reputation as a solid manufacturing organization for quality, service and value. We look forward to
welcoming their employees into the Mohawk family and becoming a part of these communities.”


March 7, 2006

Administration Outlines Its Trade Agenda

The US Trade Representative (USTR) has sent Congress a review of 2005 and an outline of its agenda
for 2006 that calls for completion of the Doha Round of trade negotiations by year’s end and
continuing efforts to negotiate bilateral and regional pacts designed to open markets for US
exports.

“The potential benefits from the successful Doha Round for the United States and its trading
partners, especially in the developing nations, are enormous, and we will continue to do all we can
to achieve a successful result. In parallel to its Doha Round efforts, the administration will move
vigorously to negotiate new bilateral and regional trade agreements to create a host of new
opportunities for US workers, farmers and businesses, USTR Rob Portman said.”

Emphasizing that it is important that trade rules be “fair and aggressively enforced” Portman
assured lawmakers the administration will continue to use “all available tools” to ensure trading
partners live up to their international trade obligations. He said the emergence of China as a
global trading partner has created both challenges and opportunities, and he pointed out that the
administration has ordered a top-to-bottom review of its trade policies involving China in order to
“better monitor and enforce” China’s compliance with its obligations as a WTO member.

Portman said the administration’s “vigorous” free trade efforts in the coming year will be
designed to promote economic growth and stability in other countries as well as new US job
opportunities. 

March 7, 2006

Jordache Adds VF’s Earl Jean Brand

Jordache Enterprises Inc., a New York
City-based apparel and denim manufacturer and marketer, and a group of private investors have
acquired Greensboro, N.C.-based VF Corporation’s Earl Jean® brand. The sale price was not
disclosed.

Jordache will add Earl Jean to its denim business’s offerings.

“The acquisition of Earl will continue to cement our position as a leader in denim and
apparel manufacturing,” said Liz Berlinger, president. “We think this will be a great fit for our
company and we have already had interest from some major retailers.”


March 7, 2006

Tex Tech To Supply Airbus Fire Barrier Materials

Tex Tech Industries, a Portland,
Maine-based high-tech textiles manufacturer, has signed an agreement with commercial jetliner maker
Airbus S.A.S., France, whereby Tex Tech will produce the fire barrier materials used in the
passenger cabins of the company’s new and existing aircraft. Airbus reports it currently has 30
orders for new aircraft in 2006.

The deal signals long-term growth and stability, especially for Tex Tech’s North Monmouth,
Maine-based facility, which has 200-plus employees, according to the company.

“This is a great achievement for Tex Tech, working with one of the largest and most
progressive aircraft manufacturers in the world,” said John Stankiewicz, chief operating officer,
Tex Tech. “Not only does it represent a significant achievement, but more importantly, it is a
testament to the innovation and hard work that is happening right here in Maine.”


March 7, 2006

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