Propex Fabrics Announces Acquisition

Propex Fabrics Inc. (“Propex”), SI
Concrete Systems Corporation and SI Geosolutions Corporation (“SI”) announced today that a
definitive agreement has been entered into whereby Propex will purchase SI.

Ed Stanczak will remain CEO and President of the combined entity. Headquarters will be
relocated to northern Atlanta, where growing the companies’ international presence will be a
priority. According to Mr. Stanczak, “It is our intention to create a highly diversified and
balanced company which will become the best of the best. The intended combination is a classic
example of two good companies combining to become one great company. This will be great for
customers, employees, shareholders, and suppliers.”

Joe Dana, current CEO of SI, will become the President of North American Operations with its
headquarters located in Chattanooga, TN. Mr. Dana commented, “The combination will create
opportunities to leverage the capabilities of each organization to optimize operations and generate
profitable growth. We will continue to be market driven and innovation focused with special
emphasis on maintaining exceptional service to all customers.”

The combined entity will be one of the world’s leading producers of polypropylene-based
fabrics for primary and secondary carpet backing, geosynthetic applications and a variety of other
industrial end uses. The acquisition is expected to close by the end of January 2006.

Propex was acquired in December 2004 by a group of investors led by Houston-based The
Sterling Group, L.P., San Francisco-based Genstar Capital, L.P. and Houston-based Laminar Direct
Capital, L.P.

Propex is the world’s largest producer of primary and secondary carpet backing, and a
leading manufacturer and marketer of polypropylene synthetic fabrics used in a variety of other
industrial applications.

SI is a market leader in providing innovative, high-performance products that provide
support, strength, and stabilization solutions for its customers in the Furnishings and
Construction Materials markets.

Press Release Courtesy of PR Newswire

January 2006

Milliken Ranked As One Of The Top Employers In US

Spartanburg-based Milliken & Company ranks as the 38th best company in FORTUNE Magazine’s
annual “100 Best Companies to Work” For listing. The list and related stories appears in the
January 23 issue of FORTUNE, available on newsstands January 16 and at www.fortune.com on January
9. Milliken is the only South Carolina-based company to make the list. Additionally, Milliken ranks
15th among mid-sized companies.

“It is no secret that the best
companies are made up of the best people – and we are certainly blessed in that regard,” stated Dr.
Ashley Allen, president and CEO of Milliken. “Milliken associates have worked together to build a
great place to work, and I am glad we can all be recognized as the thirty-eighth best company in
America,” continued Allen.

Despite the benefits that companies on the list offer employees, globalization has made it
harder for even the best of them to treat employees well. “The good news is that some companies are
doing it anyway,” says FORTUNE senior editor-at-large Geoffrey Colvin in his introduction to the
list. “Extraordinary by definition, America’s 100 Best Companies to Work For have pushed their
employee-pleasing ways further than ever in the past year, blazing a trail for all organizations
wanting to thrive in today’s economic world.”

Regarding Milliken, the FORTUNE web site answers the profile question of, “What makes it so
great?”, with the following: Employees have great affection for CEO Roger Milliken, whose family
founded this textile company in 1865. “Thankfully, someone in this country cares about the American
worker and what he stands for,” said one employee.

Milliken has long been a fierce advocate for preserving American jobs. The Company has faced
tough Asian competition in recent years as part of the embattled textile industry.

Milliken also evokes pride in other ways. “It is easy to take pride in a company that
promotes environmental stewardship and safety to the degree that Milliken does,” stated Richard
Dillard, director of public affairs. The Company landfills less than 1% of its waste — a result of
stringent recycling efforts, and touts an accident incident rate of only .55 compared to the
textile industry average of 4.0 and to 6.6 for all U.S. industries. (Source: US Bureau of Labor
Statistics).

“The 100 Best Companies to Work For” list is compiled for FORTUNE by Robert Levering and
Milton Moskowitz of the Great Place to Work Institute in San Francisco, based on two criteria: an
evaluation of the policies and culture of each company, and the opinions of the company’s
employees. The latter is given more weight; two-thirds of the total score comes from employee
responses to a 57-question survey which goes to a minimum of 400 randomly selected employees from
each company. More than 100,000 employees from 466 companies participated in the survey this year,
up from 356 candidate companies last year. It asks about things such as attitudes towards
management, job satisfaction, and camaraderie within the organization. The remaining one-third of
the score is based on an evaluation of each company’s demographic makeup, pay and benefits
programs, and culture. Companies are scored in four areas: credibility (communication to
employees), respect (opportunities and benefits), fairness (compensation, diversity), and
pride/camaraderie (philanthropy, celebrations). Companies that are at least seven years old and
have 1,000 or more employees are eligible for the list.

Milliken has attributed much of its success to a quality process, with associate involvement
at all levels, combined with its continuous education process.

Press Release Courtesy of Milliken & Company




January 2006

IFAI Expo Expands Scope


A
 lthough overall participation at the Industrial Fabrics Association International (IFAI)
Expo 2005 was a bit lower than in 2004, exhibitors reportedly were “extremely happy” with the
results.

“We couldn’t figure out at first why there was such a positive feeling on the show floor
knowing that our attendance was about the same as in Pittsburgh [the site of IFAI Expo 2004], but
our post-show exhibitor survey reported that exhibitors were happy for two reasons,” said Stephen
M. Warner, IFAI’s preson 150th Anniversary touring venueident and CEO.   

“First, there were a lot of new faces. Forty-four percent of those attending were not there
last year; 17 percent were from outside the United States. That’s a record for us.

“Second,” he continued, “the visitors represented larger companies, and more were in the
emerging markets like medical, safety, structures and military applications.”

Of the 437 exhibitors — up from 413 in 2004 — 83 participated for the first time at IFAI Expo
2005, held late last year in San Antonio. The number of attendees totaled 6,259, coming from a
record 51 countries to see what exhibitors had to offer and learn about new developments in the
specialty fabrics sector.

First-time attendees Gene and Maggie Huser of Kemah, Texas-based Bristol Fashion found the
expo to be quite worthwhile.“We made many contacts and were awestruck by the technology out there,”
they said. “IFAI Expo 2005 helped us, as small business owners, become more knowledgeable for our
customers.”

In addition to the commercial exhibits, the expo included two pre-conference symposia —
Fabric Structures 2005 and Textiles & Graphics — that attracted participants from new market
segments. Fabric Structures 2005 attracted more than 200 architects, designers, structure
fabricators and installers. Textiles & Graphics reached out to those involved with digital
graphics.

Activities also included educational programs under 12 tracks: Automotive; Filtration;
Geosynthetics for Landscape Architecture; Medical Textiles; Safety & Protective; Sports &
Recreation; Awning & Canopy; Banner & Flag; Inflatable & Tent; Marine; Upholstery; and
Business & Leadership. The programs presented new technologies and ideas such as innovations
brought about by the needs related to emerging markets. More than 100 speakers — including keynote
speaker Doug Lipp, former head trainer at Walt Disney University — shared their insights and
knowledge with expo attendees.

VuiTentNEW
Fabric Shelter Systems Ltd., New Zealand, won an IFAI 2005 International Achievement Award
of Excellence for the tent it designed for the Louis Vuitton 150th Anniversary touring
venue.


Advanced Fabrics

Exhibition Shows Creative Extremes


Of special interest at IFAI Expo 2005, the Advanced Fabrics Exhibition promoted creativity
and innovation in the use of specialty fabrics.

On view were apparel, furniture, bowls and vases, bags, architectural systems, habitat, and
other objects and prototypes inspired by various specialty fabrics. Examples included: a
daylight-blocking, light-emitting curtain lamp submitted by Linda Worbin, Sweden; a strong,
lightweight resin-coated chair made of knotted carbon-fiber/aramid hybrid yarn submitted by Marcel
Wanders, Amsterdam; sports bags made with 3-D spacer fabrics submitted by Hybrids + Fusion, The
Netherlands; and coral-like bowls made by dipping cotton crocheted bowls into porcelain and then
firing them, which causes the cotton to burn away, submitted by Hil Driessen, Amsterdam; among
other articles.

IFAI-seat
Objects shown at the Advanced Fabrics Exhibition included “Fusion” – a seating object
comprising a 3-D, flexible material wrapped around a rubber ring submitted by Sachio Hihara, Japan
– shown in front of a sound-absorbing wool fabric submitted by Margareta Zetterblom,
Sweden.


Looking Ahead


Warner said a post-expo visitor survey indicated 65 percent of those polled planned to make a
purchase from an exhibitor within two weeks of the event’s closing as a result of the contact made
there. The post-expo exhibitor poll indicated 89 percent would return next year.

More than 70 percent already have reserved space for IFAI Expo 2006, scheduled for Oct.
31-Nov. 2, 2006, at the Georgia World Congress Center in Atlanta as part of Megatex 2006 — a
colocation of textile industry events that also will include the American Textile Machinery
Exhibition-International® 2006 and the American Association of Textile Chemists and Colorists
International Conference & Exhibition 2006.


IFAI International

Achievement Awards Of Excellence


IFAI presented 83 2005 International Achievement awards including 30 awards of excellence for
the following specialty fabric projects:

•    Tension Structures, Under 10,000 square feet (ft2): FTL Design
Engineering Studio, New York City, and Taiyo Birdair Corp., Amherst, N.Y., Mesa Arts Center, fabric
trees;

•    Tension Structures, 10,000 to 30,000 ft2: Tenso Estructuras
Arquitectónicas, Mexico, Auditorio Parque Olímpico; and FTL Design Engineering Studio and Taiyo
Birdair Corp., Hampton Roads Convention Center, tensile structure;

•    Tension Structures, More than 30,000 ft2: Covertex GmbH,

Germany, soccer stadium,

AWD-Arena;

•    Air Structures: Covertex GmbH, soccer stadium, Allianz Arena;

•    Awnings, Commercial, Illuminated, Interior and Multi-Family Residential:
Baraboo Tent & Awning Inc., Baraboo, Wis., Adams County Memorial Hospital;

•    Awnings, Single-Family Residential: Sunmaster of Naples Inc., Naples,
Fla., Martin residence;

•    Awnings, Retractable: Rolltec Rolling Systems Ltd., Canada, awnings over
terrace area;

•    Canopies, Commercial, Illuminated and Multi-Family Residential: Sundance
Awning & Fabric Structure, Orlando, Fla., Seasons 52 Restaurant canopy;

•    Canopies, Single-Family Residential: Miami Beach Awning Co. Inc., Miami,
Claramonte-Neves residence;

•    Free-Standing Canopies: Sundance Awning & Fabric Structure,
Nickelodeon Family Suites Hotel;

•    Banners and Flags, Small Scale/ Arts & Crafts: The Design Loft Inc.,
St. Louis, Eastpoint Mall, Butterfly/Dragonfly Court;

•    Banners and Flags, Large Scale/ Special Events: Sundance Awning &
Fabric Structure, Port Canaveral Cruise Terminal;

•    Marine Exterior Fabric Products (Powerboats): Eau-Vent L.M. Inc., Canada,
Bayliner 3880;

•    Marine Upholstery and Interior Fabric Products: Calypso Marine Canvas
(Trinidad) Ltd., Trinidad and Tobago, Quick Like;

•    Marine Exterior Fabric Products (Sailboats): The Boatswain’s Locker Inc.,
Jacksonville, Fla., 466 Harker;

•    Party Tent Rental: Affordable & Luxury Tents, Virginia Beach,

Va., Stacy Smith/Mark Gonsenhauser wedding;

•    Commercial Tent Rental: Roder Zelt-und Veranstaltungsservice GmbH,
Germany, Chio World Equestrian Festival;

•    Tent Manufacturing: Fabric Shelter Systems Ltd., New Zealand, Louis
Vuitton 150th Anniversary touring venue;

•    Architectural Structures, Other: Sun Ports International Inc., Dallas,
Deer Springs Park; and Castro Rojas Ingenieros y Arquitectos Ltda., Colombia, Centro Comercial
Sambil;

•    Graphics: Pink Inc., New York City, circle surrounds;

•    Trade Show/Exhibit Booth: Taiyo Membrane Corp., Australia, Stadia China
exhibit structure;

•    Interior Projects: Studio Lilica, Arcadia, Calif., Nine Wings; and
Architen Landrell Ltd., Wales, Spiky & Cloud pods;

•    Interactive and Cold-Air Inflatables: Canvasland Holdings Ltd., New
Zealand, Pelican;

•    Geosynthetic Projects: Mirafi Construction, Pendergrass, Ga., Trump
National Golf Club;

•    Industrial Applications: Carpas y Lonas el Carrousel S.A. de C.V.,
Mexico, Dolphin Adventure;

•    Safety and Protective or Medical Products: Rainier Industries Ltd.,
Tukwila, Wash., GOX Seals, NASA Space Shuttle; and

•    Miscellaneous: Hightex GmbH, Germany, Melancholia.

January/February 2006

TLV Introduces BE3L Bellows Seal Globe Valve

TLV Corp., Charlotte, reports its
BE3L bellows seal globe valve offers high reliability in steam, heat-transfer fluid and hot-water
applications.

Features include: zero-leak, triple-seal construction by which the bellows, gland packing
and stem seal provide an impermeable barrier between fluid and environment; forged steel
construction and stainless steel bellows tested to last through 10,000 cycles; stellite hardened
surfaces on the valve plug and seat to provide tight, reliable shutoff; low maintenance, with no
need to tighten or replace the gland seal packing; and a versatile, compact design rated to 710
psig and 752°F.


January/February 2006

Johns Manville Introduces Gorilla Wrap, DuraBase

The Engineered Products Group of Denver-based Johns Manville (JM) has unveiled two new building
products: Gorilla Wrap™ house wrap, and DuraBase™ asphalt and nonwoven polyester roofing
underlayment.

The manufacturer and marketer of building and specialty products reports Gorilla Wrap, a
tear-resistant house wrap made of nonperforated, nonwoven polymeric material, increases energy
efficiency and offers maximum moisture control. The product’s tear resistance is 300 percent higher
than the leading house wrap, according to the company.

“Combined with its tear strength and superior ultraviolet inhibitors that allow at least six
months’ exposure time, Gorilla Wrap gives builders greater peace of mind and increased flexibility
with job scheduling,” said Fred Stephan, vice president and general manager, High Performance
Nonwovens, JM Engineered Products Group.

The company’s DuraBase product combines asphalt technology with high-performance nonwoven
polyester reinforcement, resulting in a puncture-resistant underlayment that holds nails better and
has greater tear strength than synthetics or felt, according to the company. The product also
offers waterproofing and ultraviolet resistance, and unrolls flat during installation in warm or
cold weather.

“Since JM is the only manufacturer with the ability to produce this combination of asphalt
and nonwoven polyester, we can offer builders and contractors this innovative product that provides
the performance of synthetics with the benefits and value of felt, while also providing the
industry’s most efficient installation process,” said Zain Mahmood, vice president and general
manager, Construction Material & Systems, JM Engineered Products Group.

January 1, 2006

Trützschler Acquires Interest In ERKO

Trützschler GmbH and Co. KG, Germany,
has acquired a 30-percent share in ERKO-Textilmaschinen GmbH, a Germany-based manufacturer of
specialty nonwovens machinery. The company, now known as Erko Trützschler Nonwoven GmbH, is managed
by Erwin Kock, Erko’s founder and acting partner.


nwmen

Erwin Kock (center) celebrates the recent Erko-Trützschler partnership with Dr. Ing.
Michael Schürenkrämer (left) and Heinrich Trützschler, managing directors, Trützschler.



Erko Trützschler offers a complete nonwoven machinery line including bale openers, roller
cards, cross lappers, web drafters and winders, as well as card clothing from Trützschler Card
Clothing. The company is expanding its application technology department to offer solutions for a
full range of applications. It will maintain its own sales department and agencies, while also
utilizing Trützschler subsidiaries, service centers and spare parts stores worldwide, including
Charlotte-based American Truetzschler Inc.

January/February 2006

Jeantex Group To Buy Sanatex

Jeantex Group Inc. — a Huntington
Beach, Calif.-based apparel producer with a focus on denim goods and accessories — will acquire all
of Carson, Calif.-based Sanatex Inc.’s stock for an undisclosed amount. Once the sale is finalized,
Sanatex will become a wholly owned Jeantex subsidiary led by current Sanatex CEO Hassanein M.
Hassanein.

Sanatex’s manufacturing facilities are based in the Private Free Zone, Egypt, and finished
goods produced there and shipped into the United States are exempt from tariffs. Therefore, both
companies’ production at these facilities will increase, said Henry Fahman, chairman,
Jeantex.


January/February 2006

Industries Call For New Curbs On China Trade

US Department of Commerce (DOC) international trade data indicating China’s trade deficit with
the United States could top $200 billion has triggered new calls by manufacturing industries,
including textiles, for new measures to limit the growth of Chinese imports. The DOC announced the
trade deficit with China in November 2005 reached $185.3 billion putting it on the course to reach
more than $200-billion for the year.

The American Manufacturing Trade Action Coalition (AMTAC) reacted sharply to the announcement
saying the only way to reign in the “job-destroying deficit” is for the US government to
demonstrate it will no longer permit unlimited access to the US market. AMTAC’s executive director
Auggie Tantillo said: “Enough is enough. China is now one of the world’s five largest economies. It
is a developed, albeit non-market economy that runs a massive trade surplus with the United States.
Meanwhile, the United States has hemorrhaged nearly three million manufacturing jobs over the past
five years — with China as one of the chief culprits causing the job losses.”

Tantillo called on Congress to pass
the Schumer-Graham legislation that would impose a 27.5-percent tariff on all Chinese imports in
order to help offset what textile manufacturers contend are unfair subsidies for their exports. He
also said that in light of the true size of China’s economy the United States should not allow
China to claim developing country status in the on-going World Trade Organization trade
liberalization negotiations.

Senator Charles E. Schumer (D-NY), co-sponsor of the legislation, said China’s
refusal to play by the rules of international trade “cripples our ability to compete on a level
playing field,” and he said “the trade deficit should be a red light to the Congress and global
economy.”




The Washington-based China Currency
Coalition, which includes textile companies, charged that China continues to undervalue its
currency, giving Chinese goods an “unfair advantage” in the marketplace. Stating that China “does
not play by the rules,” the coalition’s trade counsel, David A. Hartquist, said “China’s
undervalued currency is a stealthy way of subsidizing its exports to the United States while taxing
US exports to China.” He said China’s “much-touted” appreciation of its currency last July has had
no positive impact on US trade or manufacturing, although some administration officials and
economists said it was a step in the right direction.


January 1, 2006

Mohawk Teams With Solutia 3M Brands

Mohawk Industries Inc., Calhoun, Ga.;
Solutia Inc., St. Louis; and 3M, St. Paul, Minn; will team their brands in a new line of carpets
offered by Mohawk. Eighty-plus products will be made with Solutia’s Wear-Dated® carpet fibers and
3M’s Scotchgard® protector advanced repel technology.

“By delivering a unique combination of three well-recognized brands — Wear-Dated, Scotchgard
and Mohawk — we are helping consumers easily identify carpets they can trust,” said Gary Lanser,
general manager, Solutia Wear-Dated. “In addition, we will continue our outstanding tradition of
fiber technology innovation, assuring a stream of options for Mohawk product development for the
retailer and for the consumer.”


January/February 2007

Executive Forum: James W. Chesnutt



R
 obert Frost once said, “The best way out is always through.” For many years, the US
textile industry tried to go around, above and beneath to forge policies that were beneficial to
us. For many years, the industry also came up empty-handed or had policies thrown at us that were
detrimental to our companies and workers.

Finally, I think the industry has come to realize that if we are going to be successful, we
must go through Congress. And we must go through the administration and its myriad agencies if we
are going to forge policies that take our interests and the more than 600,000 workers we employ
into account.




In recognition of this new strategy,
the National Council of Textile Organizations (NCTO) was established almost 18 months ago in an
effort to mobilize the resources of our domestic textile industry more efficiently and
effectively. 

 

Exec-Chesnutt
James W. Chesnutt is CEO of National Spinning Co. Inc., New York City, and chairman of the
Washington-based National Council of Textile Organizations.


NCTO represents the entire spectrum
of the US textile sector — from fiber to yarn to finished product — as well as suppliers in the
textile machinery, chemical and other such sectors that have a stake in the industry’s prosperity
and survival.

I’ve been in textiles for more than 30 years now, and I’ve seen enormous changes during this
time — including changes in manufacturing philosophies and technology; changes in the way we market
our products as more and more businesses turn to the Internet; and, most importantly, changes in
global trading rules, which brought with them a revolutionizing change in the way trade is managed
in our sector and China’s move to quickly monopolize our industry.

First and foremost on anyone’s mind in the textile industry these days is China, as well it
should be. In the United States, China is shipping us 440 million garments a month — yes, 440
million garments a month. And that’s with safeguards in place.

With a US population approaching 300 million people, that’s 1.5 garments per person — and
this is happening every month. Over the course of a year, China will send us around 5.2 billion
garments. [T]hat certainly leaves me wondering what is left for the rest of us who want to continue
doing business in this sector.

Do any of us have a chance against China? Can any of us compete with this manufacturing
giant? The answer, of course, is yes, but it will require this industry and our government to be
bold and courageous by demanding that China play by the same set of rules as the rest of us.

The US government has worked tirelessly through the invocation of safeguards to prevent
China from monopolizing the domestic market in this sector. We currently have safeguards in place
for 10 product categories, and [as of] Jan. 1, 2006, a new textile and apparel bilateral agreement
between the United States and China [has taken] effect. All told, 34 categories of textile and
apparel products from China [are] now … controlled.

Because of this agreement, the US industry knows with certainty that China will not be able
to flood the US market during the next three years. The industry also will not have to rely on an
uncertain safeguard process with no guarantees. To be perfectly honest, I am still trying to
understand why China even signed this agreement. Regardless of its reasons, we are all breathing a
short sigh of relief now that this agreement is in place.

Unfortunately, this bilateral agreement and the safeguards are only a temporary solution to
the China threat. Under China’s WTO [World Trade Organization] accession agreement, the current
textile safeguard can only be used through 2008. After 2008, there is currently no mechanism by
which the US textile industry can hope to restrain imports from China.

We can’t use other trade remedy statutes like countervailing duty and dumping because of the
“like or comparable product” threshold. We make components, yarns and fabrics that do not meet this
threshold test. So once the safeguards are gone, our market will be wide open, and there will be no
recourse for us.

So are these safeguards just an exercise in futility — are we just delaying the inevitable?
I don’t think so, but as mentioned earlier, it’s going to require bold and courageous steps by the
US government and other governments around the world whose textile and apparel industries are
similarly at risk.

How can we work together to accomplish this? There are a couple of ways.

We believe it is imperative that the
China safeguard be extended or a new safeguard be created in the Doha Round of WTO trade
negotiations to prevent China from monopolizing world textile and apparel markets beyond 2008.
Absent such action, China will quickly grab a 70- to 80-percent share of the US market and paralyze
our industry, as well as those in other countries with significant textile manufacturing capacity.
Worldwide, this could translate into as many as 30 million people out of work and thousands of
textile and apparel plants shutting their doors forever.

A second but equally important issue involves tariff cuts for textiles and apparel in the
Doha Round. We must work together to ensure US textile tariffs are not included in the formula
approach advocated by China, [which] has proposed that US textile tariffs be dropped to 5 percent
or less while developing countries be allowed to keep their textile tariffs at 30 percent. If this
happens, the textile and apparel industry in the United States, and for that matter the entire
Western Hemisphere, will be destroyed.

The first step of this strategy requires that textile issues in the Doha Round be put into a
Special Textile Sectoral (STS) … that will enable textile issues concerning tariffs, nontariff
barriers and safeguards to be negotiated in a comprehensive manner.

Under a STS, textile tariffs would no longer fall under the formula approach in the
nonagricultural market access talks that would be so devastating for our industries. It would also
allow for a new safeguard to be developed to protect [the US textile industry from disruption due
to a massive influx of Chinese textiles] once the current safeguard expires.

As the Doha Round of global trade talks continues, it is imperative that key countries rally
together to demand that textiles and apparel be put into [their] own [separate] sectoral. If
textiles and apparel remain grouped together with other industrial products, then a new safeguard
will not be possible, textile tariffs will be slashed, and China will put us all out of business
beginning in 2009.

The threat is real, and the ramifications for all of us could be devastating. The worldwide
textile and apparel trade is at a crossroads, and it is up to us to ensure that the right road is
taken. A sectoral negotiation for textiles and apparel, a China textile safeguard beyond 2008, and
limited reduction in US textile and apparel tariffs are paramount if we want to live to fight
another day.

By working together, we can pave a road to the future for our industries. If we fail, there
is no future and the only road will be a one-way ticket across the Pacific for Chinese goods. Let’s
ensure this doesn’t happen.




January/February 2006

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