As Trade Deficit Soars, Industry Seeks Controls On Imports

As the US Commerce Department reported that the trade deficit reached a record $61 billion in
February, industry lobbyists called for the government to take measures to correct the currency
imbalance that gives China and other nations an advantage in pricing their exports to the United
States. In the first two months of this year, the trade deficit with China rose by 47 percent over
the comparable period last year, and industry officials said at that rate it could grow to $238
billion this year. The US trade deficit in textiles and clothing was $12.9 billion in the first two
months of this year, an increase of 16.5 percent. If trade continues at its present rate, the
textile and apparel deficit could reach $85 billion this year.

Auggie Tantillo, executive director of the American Manufacturing Trade Action Coalition, said
the deficit should send a strong signal to Congress and the White House that the current trade
policies are not working, and he called for passage of legislation pending in Congress that would
declare currency manipulation illegal and levy tariffs on goods from countries that subsidize their
currencies to help offset pricing advantages resulting from currency imbalances.

Government Initiates Steps To Limit Chinese Imports

As textile and apparel imports from China continue to rise sharply, the Bush administration has
initiated a procedure that could result in the imposition of new import quotas later this year. The
inter-agency Committee for the Implementation of Textile Agreements (CITA) announced it has
self-initiated safeguard proceedings in three critical product categories to determine whether
imports are causing market disruption. Under the agreement that brought China into the Word Trade
Organization, countries that can show Chinese imports cause or threaten to cause market disruption
can use a safeguard mechanism to negotiate or unilaterally impose temporary quotas limiting growth
to 7.5 percent.

Commerce Secretary Carlos Gutierrez said the “government’s action was taken to demonstrate that
the administration is committed to enforcing our trade agreements and to provide assistance to our
domestic textile and apparel industry consistent with our international rights and
obligations.”

Products subject to the review will be cotton knit shirts and blouses (Category 338/339), cotton
trousers (Category 347/348) and cotton and man-made fiber underwear (Category 352/652). Import data
for the first quarter of this year show Chinese imports in these three categories grew at 1.250
percent, 1,500 percent and 300 percent, respectively. While US textile manufacturers and labor have
filed more than a dozen safeguard petitions on their own, the self-initiated petitions by the
government could result in much quicker results.

CITA will publish notices in the Federal Register seeking public comments regarding each product
categories within the next 30 days. After that, CITA has 60 days to render a final determination.
If the committee determines that Chinese imports are contributing to disruption of the US market,
it will seek consultations with China with a view toward easing or avoiding market disruption. As
of the date such consultations are requested, a quota will be put in place to limit US imports of
the products. The Commerce Department said every effort will be made to reach agreement on a
mutually satisfactory solution within 90 days of the request for consultations.

US textile manufacturers hailed the government’s action, but it was sharply denounced by textile
and apparel importers as an unjustified act. Laura E. Jones, executive director of the United
States Association of Importers of Textiles and Apparel, said, “There is no reason to believe that
imports of these products from China are causing market disruption,” adding that she sees no
pattern, and no consistent and substantial increases to justify what she called the the drastic
action of self initiation. Kevin Burke, CEO of the American Apparel & Footwear Association,
said that while there have been substantial increases in the products involved, the Bush
administration provides no evidence that this surge has caused market disruption. Claiming that
past safeguard actions have shown no evidence of preserving US jobs, Burke said the
administration’s time and energy would be better spent promoting quick congressional passage of the
Central American Free Trade Agreement, which he says is specifically designed to promote US textile
jobs.

Textile manufacturers, on the other hand, see the action is a significant step forward and
expressed gratitude that the US government has recognized the Chinese threat. Allen Gant, chairman
of the National Council of Textile Organizations, said the industry anticipates that a final
decision on these petitions could be reached in as little as five weeks. Auggie Tantillo, executive
director of the American Manufacturing Trade Action Coalition, urged CITA to act as quickly as
possible, noting that while the US government can wait up to 60 days after the comment period to
render a decision, it does have the power to make that decision the day comments are closed. He
said the US industry cannot afford to wait an additional 60 days for a decision.

As these efforts move forward in the United States, Europes major textile and apparel trade
association, Euratex, urged the European Commission to act on its 12 petitions for relief using the
safeguard mechanism. Bill Lakin, Euratex’s executive director, said the time has come to limit the
seemingly voracious appetite of Chinese exporters for the European market.

April 2005

Central American Trade Agreement Moving In Congress

The Central American -Dominican Republic Free Trade Agreement (CAFTA-DR) is moving through
Congress on an uncertain course for textile manufacturers and the agreement itself. The House Ways
and Means Committee and the Senate Finance Committee have held an initial round of hearings that
underscored the vast amount of disagreement about the pact that would grant duty-free access to the
US market for products from Costa Rica, El Salvador, Nicaragua, Guatemala and the Dominican
Republic. Under procedures covering the legislation, Congress must either approve or disapprove of
the agreement without the right to amend it.

At the moment, the role of textile lobbying organizations is uncertain. The National Textile
Association and the American Manufacturing Trade Action Coalition are flatly opposed to CAFTA-DR,
while the National Council of Textile Organizations, which has expressed concerns about the
agreement, does not have an official position. This could lead to a split similar to what happened
in connection with the North American Free Trade Agreement (NAFTA). Retailers and other textile and
apparel importing organizations, while not entirely pleased with the agreement, are supporting it.
They believe it will provide them with more flexibility in their sourcing of clothing and
textiles.

At a House Ways and Means Committee hearing, the head of a manufacturing coalition that includes
some textile companies launched a scathing attack on the agreement. George Shuster, CEO of Cranston
Print Works, who, along with Roger Milliken ,CEO of Milliken & Company, co-chairs of the
American Manufacturing Trade Action Coalition, told committee members voting for CAFTA-DR is a vote
for China and a vote against American manufacturing. Shuster, Milliken and other AMTAC officials
have been highly critical of NAFTA, contending that it has not benefited US textile manufacturers,
and they say CAFTA-DR will be a similar failure. In his testimony, Shuster said: “From surpluses
before NAFTA we have gone to continuous deficits. Over this period, hundreds of US factories have
closed and relocated south of the border in order to take advantage of low productions costs in
Mexico.” He said CAFTA-DR makes it easier for US companies to outsource high-paying manufacturing
and service sector jobs by guaranteeing investment rights and access to the US import market.
Charging that the CAFTA rule of origin requirements are riddled with loopholes that allow US
duty-free treatment for the assembly of components parts from every corner of the globe, Shuster
said CAFTA-DR is worse than NAFTA.

Meanwhile, House democrats accused Ways and Means Committee Chairman Bill Thomas and the acting
US Trade Representative of excluding them from deliberations on the agreement. Committee Ranking
Member Charles Rangel (D-NY) said the administration has refused to address labor and environmental
issues that are being raised by democrats, and he warned that is discouraging bi-partisan support
for the bill. House Majority leader Tom Delay (R-TX) has set a deadline of the end of May for the
House to vote, but Speaker Dennis Hastert ( R-IL) has simply said he would like to see a vote soon.
On the Senate side, republican leaders don’t foresee an early vote, as they have encountered more
opposition than expected, and they are seeking more time to lay the groundwork for a successful
vote.

April 2005

Dalton: The Carpet Capital Of The World

downtowndalton

Downtown Dalton offers a number of antique and specialty shops.


V
isitors to Floor Tek Expo 2005 may also want to take in the sights of Dalton, Ga. Located
in Whitfield County – just 87 miles north of Atlanta and 28 miles south of Chattanooga, Tenn., – it
often is referred to by locals as the Carpet Capital of the World. According to the Dalton
Convention and Visitors Bureau, the town’s nickname sprang from a cottage industry that produced
hand-tufted chenille bedspreads, which were displayed and sold along a stretch of road known as
Peacock Alley (The peacock remains a symbol of the city). The success of this industry led to the
development of tufting machinery and subsequent production of tufted carpets.

Points of interest in and around town include downtown Dalton, which affords visitors a number
of antique and specialty shops, as well as Dalton Green and Gateway Parks. Also located downtown is
the Dalton Depot. Used as a railroad station from 1847 to 1978, it now houses a restaurant and is a
prime spot for surveying the city.

Downtown also is the site of the only outdoor statue of Confederate General Joseph E. Johnston,
commander of the Army of Tennessee during the Atlanta campaign.

Other shopping can be had at Tanger Outlets – home to 40 factory-direct stores and the
Carpets of Dalton and American Home Showplace, both located off I-75. Carpet industry tours may be
arranged through the bureau.

Nearby are the Blunt House, built in 1848 for Dalton’s first mayor, postmaster and religious
leader; as well as the Clisby-Austin House Railroad Tunnel, a Civil War historical site and the
oldest railroad tunnel in the South, according to the bureau. The Confederate Cemetery and Monument
contains the graves of 421 Confederate and four unknown soldiers. The cemetery’s monument was
erected by the Civil War Roundtable and lists the names of soldiers who fought for the
Confederacy.

Barnsley Inn & Golf at Barnsley Gardens offers golf enthusiasts and other visitors 1,300
picturesque acres nestled in the Appalachian foothills.

Crown Gardens & Archives is located near the Hamilton House Museum – Dalton’s oldest brick
home. The home features exhibits devoted to the town’s textile industry, Cherokee Indian history,
Georgia poet Robert Loveman, and Civil War materials and artifacts, among other collections.

statue

Dalton is home to the only outdoor statue of Confederate General Joseph E.
Johnston.

Dug Gap Battle Park comprises a collection of breastworks built by Civil War soldiers during the
Atlanta campaign.

There are a number of sites to see just outside of Dalton, including the Blue and Gray Trail,
which follows the Civil War’s most dramatic moments from Chattanooga to Atlanta. Thirty-two
commemorative trail markers are located throughout Whitfield County.

Chickamauga National Military Park is the oldest, largest and most visited national military
park, according to the bureau. Attractions include the Fuller Gun Collection, walking tours, and
hiking and biking trails, among other activities.

Spots along the Chieftains Trail, which was dedicated during the 150th anniversary of the Trail
of Tears, allow visitors to see Cherokee Indian villages, homes, mounds, museums and ceremonial
grounds.

Built in 1804, The Chief Vann House was the home of Cherokee Indian Chief James Vann, who
recruited Moravian missionaries to teach the tribe’s children.

Red Clay Park is the site of the last Council Grounds of the Eastern Band of the Cherokee
Indians. Visitors to the park may tour a museum of Indian history and displays featuring daily
life, as well as replicas of Cherokee structures.

For more information about Dalton attractions, contact the Dalton Convention and Visitors Bureau
(706) 270-9960, (800) 331-3258; fax (706) 278-5811;
www.daltoncvb.com.

April 2005

Woolmark, Malwa Debut Indigo Wool

The Woolmark Co., Australia, and the Malwa Group, India, have developed Indigo Wool, a line of
indigo warp-dyed wool products that have home laundering characteristics. The production method
used simultaneously takes thousands of yarn ends and dyes them using a continuous warp-dyeing
system. The dyed yarns are woven using methods specially adapted to process the softer wool
yarns.

Targeted to high-end casualwear markets, the products have a soft hand and excellent fit, drape
and crease recovery; are machine washable; and retain their shape and appearance after laundering,
according to the companies.

Malwa also has been working with TS Jeans Care, England, to develop a range of finishing
techniques that will enhance the aesthetics and effects of wool and indigo dye appearances in
finished garments.

April 2005

Reifenhäuser To Install Line At STFI

Reifenhäuser GmbH & Co. KG,
Germany, will install a REICOFIL® 4 spunbond line equipped with bicomponent capability at the
Germany-based Saxony Textile Research Institute.

Nonwovens companies will be able to use the line to conduct research projects and trials,
and may be able to participate in federal research programs.


March 2005

Genkinger, Hubtex Merge, Team Up With Neuenhauser

Genkinger Maschinenbau GmbH and
Hubtex Maschinenbau GmbH, both based in Germany, recently combined their machine handling equipment
manufacturing operations. The new company, Genkinger-Hubtex GmbH, is headed by Managing Director
Harald Schlosser.

Neuenhauser Maschinenbau GmbH & Co., also based in Germany, is a co-partner in the new
company. Neuenhauser Inc., the company’s North American distributor, has consolidated Hubtex of
North America, the Hubtex distributor for the region, into its operation in Greer, S.C.

Markus Heinis, former president of Hubtex of North America, now serves as president of
Neuenhauser Inc. — Textile Division. Ken Carrick and Chuck Holmes are responsible for daily sales
and customer contact efforts. Tommy Loftin and Calvin McDowell continue to provide spare parts and
service coordination for Genkinger-Hubtex equipment.

“We are pleased to provide this consolidated offering of material handling equipment,
service and spare parts to the [textile] industry,” said Philip J. Riddle, president and CEO,
Neuenhauser Inc. “With bringing the talents of the associates of Hubtex of North America into
Neuenhauser Inc., our combined customers will have the benefits of a centralized provider of sales,
service and spare parts for their material handling requirements.”


March 2005

Avery Dennison Launches New Line Of Fasteners

Avery Dennison System 1000 Brand Identification Fasteners, recently launched by the Fastener
Division of Avery Dennison Retail Information Services, Framingham, Mass., feature an expanded
paddle area for imprinting with brand and product information. The fasteners’ unique appearance and
molding process aid in verifying product authenticity, identifying fakes and deterring
counterfeiting, according to the company.

March 2005

Rieter Revitalizes The Market

 

I
n order to remain a strong player in the global textile game, Rieter Machine Works Ltd.,
Switzerland, has developed new training systems for its draw frames and has introduced two new
combers.


Computer-Aided Training System

The proper setting and maintenance of spinning machinery are essential for achieving optimum
yarn quality, and require plant personnel with the appropriate know-how. When personnel change,
this knowledge must be reestablished through training.

As an alternative to external training, and in an effort to keep up with rapid technical
changes that make increasingly heavy demands on today’s textile industry, Rieter has developed the
Computer Aided Training System (CATS) for the RSB-D 35 and SB-D 15 draw frames. CATS also will be
available soon for the RSB-D 30 and SB-D 10 draw frames.


The Draw Frame: A Quality-Defining Machine

Rieter draw frames have set global standards for sliver quality. More than 20,000 RSB and SB
draw frames sold in 98 countries bear witness to the exceptional success of these machines.
According to Rieter, draw frames demonstrably ensure yarn quality and running properties with
minimal capital expenditure, and are reliable and operator-friendly. Rieter reports the machines
operate without requiring any special attention, which means that maintenance may sometimes be
overlooked.


Customer Training

External training on Rieter’s premises has unquestionable advantages. Explanations can be
given and handling practiced with no time constraints while the machine is at a standstill, and
questions can be dealt with individually. The disadvantages of conventional training courses are
familiar, for example, a large amount of information is communicated in a short time. What has been
learned can be practiced, but not always in-depth. Back home, the course file ends up in the filing
cabinet, since there is work to be done. If problems arise, personnel must meet deadlines, and the
file is not referred to. What is more, during day-to-day operations, the barriers to optimizing
machine settings are fairly high. If one ascribes to the motto ‘If it ain’t broke, dont fix it,’
the machine’s potential may not be fully realized in favor of uninterrupted production. New media
technologies enable information and learning processes to be designed with increasing flexibility
for individual needs.

CATS enables complex facts and sequences of motion to be presented and discussed using a
multimedia approach. Explanations using a combination of text, illustration, sound, video and
animation are easy to understand. System users soon find their way around the program and thus
achieve productive learning results.

The student’s knowledge after working through a CATS lesson is often better, more balanced
and firmer than after conventional instruction. Tests have shown that what has been learned with
the help of CATS is memorized better because the student is actively involved in the learning
process. Learning targets are achieved in a shorter time, which reduces the training period by 20
percent or more. Students may also organize their own time at the computer with CATS.


Easy Access To Information

The CATS RSB-D 35 runs on any customary office personal computer. Navigation is easy and
self-explanatory. After entering a personal password, the student may commence individual training.

CATS is organized into three main sections:

Introduction: This provides a comprehensive overview of the purpose and function of the RSB
draw frames.

Training: This includes topics related to the machine as a whole with all relevant
mechanical, electrical, electronic and technological settings, including laboratory testing.

Self-Test Certification: This allows the student to check his knowledge by means of
multiple-choice questions. When he leaves the system, the questions answered to date are
automatically assessed and statistics displayed.

A glossary with all terms relevant to the draw frame may be accessed from any position. The
CATS study package comprises explanations totaling more than 22,000 words, more than five hours of
video and animation, more than 80 glossary entries, and more than 1,000 photographs.The training
program is available in English, Turkish and Chinese and soon will be available in Urdu.


Higher Efficiency Through Good Training

The current training trend is toward modern learning media, which are readily accepted by
students. With well-trained personnel, it is possible to realize the full potential of the RSB-D 35
and SB-D 15 draw frames, as well as the D 30 and D 10 predecessor models. CATS aids in this process
through its easily understandable form.

However, CATS RSB-D 35 not only is a training medium; it is a comprehensive reference work
about the draw frame as well. It also is possible to print out individual subjects with a click of
the mouse.Together with Rieter’s Sliver Professional expert system, CATS ideally complements the
performance package of the machine, and ensures the efficient production of high-quality yarns,
according to the company.


New Comber Models

The new E 65 and E 75 (ROBOlap) comber models are the world’s first combers to achieve a nip
rate of 450 per minute in mill operation, and thus a daily output of more than 1,500 kilograms (kg)
of combed sliver per machine.

Several thousand E 62 and E 72 combers currently are in operation, mostly with nip rates of
between 370 and 400 per minute. Rieter reports it has demonstrated that its combers can be operated
continuously at nip rates of up to 400 per minute while maintaining superior technological values.
This experience, together with Computer Aided Process Development (CAPD) – computer simulations of
the combing process specially developed by Rieter – formed the basis for further production and
quality improvements. By utilizing proven elements of the predecessor models and incorporating
further optimizations of various combing process parameters, the new CAPD+ process has boosted the
nip rate to 450 per minute and output to up to 68 kg per hour.

Despite the significant increase in production of some 13 percent, no compromise has been
made with regard to raw material utilization and running properties, according to Rieter. As with
the predecessor models, these latest-generation machines also feature improved fiber selection and
thus up to 3 percent higher raw material utilization.

The stress on the mechanical elements has been further reduced by CAPD+. This means reduced
stress on the fiber, optimum web formation, constant combing quality, lower power consumption,
reduced wear of the combing elements and longer service life of the installation.

The running properties of the E 65 and E 75 allow these machines to achieve efficiencies of
up to 96 percent, according to Rieter.


Combing Technology Components

The combing elements also have been adapted to the new combing process. The Ri-Q-Top top
comb developed by Rieter and the new Primacomb 8014 and 8015 circular combs guarantee maximum
combing efficiency at any production level, according to the company. The self-cleaning effect
means soiling of the top combs, and therefore maintenance, is reduced by up to 75 percent. This
improvement in cleanliness has a positive impact on the machine’s running properties and quality
consistency.


Drafting Technology

Various elements of the technology featured in Rieter draw frames are utilized in the E 65
and E 75 combers. Variable break draft and main draft gaps facilitate ideal fiber guidance in the
drafting zones.These improvements enable optimum combing results to be achieved with 1-inch cotton
fibers. A newly developed web consolidation feature guarantees faultless sliver formation, and
precisely positioned suction elements ensure maximum cleanliness of the drafting system, according
to Rieter. These innovations improve the spectrograms and reduce the coefficient of variation value
by an average of 0.5 percent.

The drafting zone of the E 65 and E 75 (ROBOlap) combers features adjustable break draft
and main draft gaps.


Unique Combing Automation

Rieter still is the only supplier of a fully automated combing set with proven qualities in
a large number of installations. Almost 1,000 combers with automatic lap change and batt piecing
system (ROBOlap) and automatic lap transport system (SERVOlap) currently are in operation
worldwide. Growing numbers of spinning mills, even in low-wage countries, now are opting for
automation in the combing room. The deciding factors are an increase in efficiency of up to 3
percent, more consistent quality and reduced space requirements.


Higher Output, Lower Costs

The new E 65 and E 75 combers offer various advantages that have an immediate impact on
production costs. For a correct comparison of production costs, lower energy consumption and
savings on raw materials and ancillary costs must also be included in the calculation alongside
capital and labor costs. Only then does it become apparent that, compared with other manufacturers,
combers costs per kilogram of combed sliver produced using the E 65 and E 75 combers are lower
thanks to the higher performance of these machines.

In order to ensure Rieter’s product quality, a large number of machines were tested in the
field in continuous operation under a wide range of conditions for several months before the
companys market launch of the new combers commenced. The tests confirmed the significant increase
in productivity and the quality improvements achieved with the new combers.

March 2005

Hills, Changyuan Team Up To Build Extrusion Equipment

Hills Inc. – a West Melbourne, Fla.-based developer of multicomponent fiber extrusion technology
– and Changyuan Elastan Machine Manufacturing Co. Ltd. – a China-based manufacturer of elastic
filament equipment – have entered into a joint development agreement to design, develop and produce
melt-spun spandex fiber extrusion machinery for the man-made fiber industry. Hills will sell the
machinery outside China under the Hills/CY brand name. A machine will be available for
demonstration at Changyuan later this year.

March 2005

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