Commerce Department To Expedite Publishing Import Data

In a move designed to improve its tracking of textile and apparel imports, the Commerce
Department is establishing a new system for monitoring textile trade. The system will allow the
deparment and the public timely access to preliminary textile and apparel trade data from the US
Customs and Border Protection Agency, and allow policy makers to more quickly analyze the impact of
imports on the US market.

US Commerce Secretary Carlos M. Gutierrez said the action “demonstrates the commitment of this
administration to put in place the tools necessary to enforce our trade agreements and level the
playing field to support our domestic textile and apparel industry.”

The move was hailed by the American Manufacturing Trade Action Coalition (AMTAC), which had long
sought such a program in order to enhance the textile industry’s claims of market disruption by
Chinese imports. In welcoming the news, AMTAC’s executive director, Auggie Tantillo, said: “We are
confident that the data the US government will be releasing will show dramatic increases in US
imports of textile and apparel products from China, and the data will help to prove the industry’s
claim that China is disrupting the US market.”

The Commerce Department said it expects the new system to be in place by the first week in
April. In order to provide public access to the information the department will post the data
biweekly on its website,
http://otexa.ita.doc.gov.



March 1, 2005

Process Control Unveils CA Series Vacuum Loader

Atlanta-based Process Control Corp. now offers its CA Series vacuum loader, suitable for
applications that require raw material delivery. The company reports the self-contained,
economically priced, compressed-air-powered unit is available in three sizes and delivers pellets,
regrinds or granular-type materials at rates ranging from 100 to 800 parts per hour. The loaders
feature direct-mount design, are equipped with all necessary components for quick loading of
materials into any processing machine or storage bin, and are easy to maintain and clean out. Units
are available as single inlet loaders or as dual inlet ratio loaders that load pellets and regrinds
proportionally and convey them simultaneously.

March 2005

Picanol Streamlines Organizational Structure

The Picanol Group, Belgium, has restructured its organization around two core divisions and has
integrated former Global Textile Partner (GTP) activities into these divisions.

The Technologies division comprises Proferro and BUMAC casting and mechanical production
activities; Mechatronics; and GTP Accessories including frames, heddles, reeds and insertion
technology. It supplies parts and system solutions to original equipment manufacturers.

The Weaving Machines and Services division comprises air-jet and rapier, which develops and
produces weaving machines; weaving machines customer relation teams, which handle machinery sales;
and after-market sales and support, which provide additional products and services.

March 1, 2005

Sara Lee To Spin Off Branded Apparel

Chicago-based Sara Lee Corp. has announced it will spin off its Winston-Salem, N.C.-based
Branded Apparel, Americas/Asia, business into a publicly traded, independent company. The move is
part of a comprehensive transformation plan intended to improve Sara Lee’s performance and
long-term growth prospects, and focus its portfolio on its core food, beverage and household
products.

The announcement follows news that Sara Lee is exploring the sale of its $1.8 billion European
apparel business.

Sara Lee Branded Apparel, a business that includes the Champion®, Hanes® and Playtex® brands,
registered an 11.6-percent increase in operating segment income for the first half of fiscal 2005,
according to C. Steven McMillan, chairman and CEO, Sara Lee Corp. The business employs more than
50,000 people globally including 14,500 in the United States. The spin-off is expected to be
completed in 12 to 18 months.

“With approximately $4.5 billion in annual sales, we would become a Fortune 500 company and one
of the largest apparel companies in the world,” said Lee A. Chaden, CEO, Sara Lee Branded Apparel.
“The management of Branded Apparel is very excited about this move,” Chaden said. “Our business
today is very healthy. And, given our scale, the strength of our brands and the quality of our
people, we are fully confident that we can accelerate our growth curve as an independent
enterprise.

“We will remain in Winston-Salem, which has been our home since two Hanes brothers created
companies 104 years ago,” he added.

Richard A. Noll, currently CEO of Sara Lee Bakery Group, has been named president and COO of
Sara Lee Branded Apparel.

March 1, 2005

Monforts Certifies First Swiss Manufacturer

Christian Eschler AG – a warp and circular knitting manufacturer of fabrics for workwear,
sportswear, technical textiles; and basic fabrics for lingerie and embroidery – is the first
company based in Switzerland to receive Monforized certification by Germany-based A. Monforts
Textilmaschinen GmbH and Co. KG.

The certification is granted only to mills using Monforts equipment maintained according to the
manufacturers’ standards. According to Monforts, it assists textile buyers in recognizing the
quality of fabrics dyed and finished using Monforts equipment. Monforts also has certified 10
textile producers in China, one each in Belgium and Italy, and two in Germany.

March 2005

Fiber Production Sets Record In 2004

A preliminary report released by Saurer Management AG, Switzerland, indicates 2004 fiber
production totaled a record 67+ million metric tons a 6.7-percent increase over 2003 output. Of
this total, man-made fiber production represents 56 percent, or 37.9 million metric tons. Cotton,
wool and silk together represent 36 percent, or 24.1 million metric tons.

Polyester (PES) output led the growth in man-made fibers, increasing by 9.7 percent to 24.5
million metric tons. Cellulosics output rose by 8.1 percent to 3.2 million metric tons. Polyamide
(PA) yarn production was up by 5.3 percent; staple fiber output was unchanged at 0.5 million metric
tons. Polypropylene (PP) output rose by 2.7 percent to 3.1 million metric tons. Acrylic (PAN) fiber
output was up 1 percent to 2.7 million metric tons.

Much of the increased production is attributed to China which grew its PES staple fiber output
by 21 percent and filament output by 22 percent, contributed to an 11-percent rise in Asian PA
production, and increased its PAN production by 5 percent. The United States registered increases
of 0.9 percent in staple polyester fiber, and in industrial and carpet PA yarn output 9 percent and
5 percent, respectively; while showing decreases in textile PA yarn output. Western European PA
production also showed gains in industrial and carpet yarns 5 percent and 10+ percent, respectively
and declines in textile yarns. The region also grew its PP production by 8 percent, while seeing
declines of 6 percent in PES filament and 1 percent in PAN output.

Turkish output increased by 10 percent in the PES filament and PAN sectors. Brazil and Mexico
also registered increases in PES filament production, while Korea lost ground in that sector. In
PES staple, India saw a 10-percent gain and Mexico experienced a significant decline.

March 2005

SMIT Solutions


S
 MIT weaving machinery is used to produce a variety of technical fabrics, among other
products.

SMIT S.p.A., Italy, has accumulated more than 50 years of experience in application-oriented
research and development in the weaving sector, which has enabled the company to offer a range of
optimal technologies and solutions, as well as the expertise to support new developments. Several
thousand SMIT weaving machines currently are installed around the globe.

Since its inception, the company has seen many benchmarks in the weaving industry: In 1960,
SMIT designed and built the td shuttleless loom, the world’s first gripper weaving machine. The
technology behind that loom has evolved into modern textile innovations for the weaving industry.


High-Performance Weaving Machines


SMIT created the GS900 and JS900 weaving machines with a focus on optimal yarn load control,
superior fabric quality and high productivity. The machines are designed to obtain maximum
productivity in technical textiles in a range of product sectors. The compact construction of the
machines features a distortion-free frame that guarantees vibration-free running, even at high
speeds. All functional units are easily accessible and settable because of the machine’s ergonomic
design and user-friendliness. The modularity concept developed for these machines and their weft
transport technology permit working widths of 140 to 360 centimeters (cm). The GS900 and JS900 also
offer superior insertion rates, according to SMIT.

The G6300 and GS900 rapier weaving machines and the JS900 air-jet weaving machine can
produce glass, high-precision printing and bolting, aramid, airbag, and industrial and heavy
fabrics, among others.


Glass Fabrics


For glass fabrics, the G6300 and GS900 provide dynamic control of the flexible rapier inside
the shed. There are no guiding teeth, and thus no friction with the warp yarn. Reduced warp shed
opening also leads to reduced yarn stress. The warp path is designed to avoid any point of
friction. Special materials and coating on all warp friction points help to prevent yarn sticking.
Special grippers on the machines are designed to resist fiberglass wearing and to avoid contact
with the warp. An optimal insertion of unsized weft allows a yarn count that can reach more than
900 decitex. The machines also are equipped with a rotating weft cutter.

The high stiffness of the G6300 machine structure, as well as reed motion and warp motion
systems, ensure extreme weft density regularity, according to the company. A special solution for
leno binding has been designed to avoid distortion of the edges. The machine’s weft scissors have
been designed to reduce wearing of the blades. SMIT’s vacuum system aids in the elimination of
false selvages.The JS900 also may be used in the production of glass fabrics. It also features a
stiff machine structure and warp control system. The machine’s weft insertion systems ensure high
productivity and minimal air consumption for standard weft counts.

In addition to glass fabrics, the JS900 may be used to produce end-products for such sectors
as electronics, aerospace, composites, fire insulation, compounds and reinforcement.

Several hundred SMIT weaving machines are currently used in Europe, the United States and
Asia for the production of glass fabrics. Such companies as France-based Saint Gobain;
Polotsk-Steklovokno, Belarus; and the Germany-based Preiss-Daimler Group have installed SMIT
machines for this purpose.The company expects this field of application to continue to grow in
connection with the growth of composite technology.


Industrial And Heavy Fabrics


The high level of stiffness of the G6300 and GS900 also aids in the production of industrial
and heavy fabrics. The machines also are equipped with a number of features that aid in this type
of end-product manufacturing: sley bars; warp motion systems; and special systems to control high
warp draft.

The rapier weaving machines also are equipped with high-capacity beams; solutions to
interface the loom with external creels; and special take-up systems that help avoid cloth
slippage, ensuring regularity of weft density. Dynamic control of the flexible rapier inside the
shed ensures there are no guiding teeth interfering with warp yarns. As mentioned beforehand,
minimal shed opening aids in reducing yarn stress.

Thousands of SMIT machines have been installed in North and South America, Europe and Asia
for the production of such industrial and heavy fabrics as canvas, conveyor belts, awnings, heavy
tent cloth and sail cloth.

Goodyear, Akron, Ohio; Bridgestone Americas Holding Inc., Nashville, Tenn.; and The
Netherlands-based Fenner Dunlop BV use them in the production of conveyor belts. Technolen, a
member of the Mehler Haku Group, Germany, uses them to produce canvas and tarpaulin. Verseidag
Techfab GmbH, also based in Germany, manufactures heavy fabrics, while Germany-based Verseidag
Indutex makes tarpaulin. The Germany-based Aunde companies use them to produce car upholstery.

The GS900 rapier weaving machine features a distortion-free frame that enables
vibration-free running, even at high speeds.


Printing And Bolting Fabrics


The aforementioned features of the G6300 and GS900 also make them suitable for the
production of high-precision printing and bolting fabrics. The high warp density of the machines
enables up to 320 ends per cm to be threaded.There are several installations of SMIT equipment,
mainly in Europe, that currently are producing these types of fabrics, including an installation at
the Switzerland-based Sefar Group.


Aramid Fabrics


The G6300 and GS900 also are suitable for the production of aramid fabrics. Several lines
have been delivered in Europe; customers include the Italy-based SAATI Group. SMIT expects the
production of aramid fabrics to continue to grow as the popularity of protective and performance
apparel grows.

The JS900 air-jet weaving machine may be used to produce glass and airbag fabrics.


Airbag Fabrics


For the production of airbag fabrics, the JS900 offers the same specialized solutions as the
G6300 and GS900 rapier models, including the same stiff machine structure and warp control systems.
Dedicated weft insertion systems ensure high productivity, optimal weft stretching and minimal air
consumption for standard weft counts. Several of these machines have been installed in Europe and
Asia. The company also has delivered a line to a facility in the United Kingdom that is owned and
operated by Wichita, Kan.-based INVISTA Inc. SMIT expects development in the airbag sector to
continue to progress in connection with the development of the automotive industry, specifically in
Asia.

March 2005

Schoeller Opens Tokyo Subsidiary

Switzerland-based Schoeller Textil AG, a manufacturer of innovative technical fabrics and
textile technologies, has opened a subsidiary in Tokyo.

Schoeller Japan Inc., which has its own showroom, will offer marketing training and service for
the company’s customers in Japan.

Hideaki Hirayma (left) and Hitoe Ogawa

Schoeller hopes to increase its market share in Japan, and build up the golf and leisure areas.
The company also will develop interior design and bedding markets, as well as individual industrial
applications for Schoeller technologies.

The new subsidiary began operations earlier this year under the leadership of CEO Hideaki
Hirayama. Hitoe Ogawa serves as marketing director.

March 2005

President Appoints Textile Officials To Trade Panel

Textile, apparel and retail executives have been named to President Bush’s Advisory Committee for
Trade Policy and Negotiations, a group comprised of a wide variety of industries that provides a
forum for discussion of international trade issues. Named to the panel were Allen Gant Jr.,
president and CEO of Glen Raven Inc. and chairman of the National Council of Textile Organizations
(NCTO); Larry A. Lebenow, president and CEO of Quaker Fabric Corp.; Edward Emma, president and COO
of Jockey Intrernational; and Tracy Mullin, president and CEO of the National Retail Federation.
Most of those named from the textile and apparel sectors are supportive of President Bush’s free
trade policies, which call for tariff reductions and more regional free trade agreements. The NCTO,
however, is strongly opposed to the Central American Free Trade Agreement, currently awaiting
congressional consideration, any trade pacts that will cost US textile jobs and any tariff cuts
until other nations reduce theirs to US levels.

March 2005

Quota-Free Imports From China Reach Record Levels

According to a report released last month by the US Department of Commerce (DOC), US imports of
quota-free Chinese apparel and home furnishing products have reached record levels. Apparel imports
from China comprised 70 percent of the 2004 US apparel market, and imports of finished textile
products from China represented 61 percent of that market. Globally, China exported 513 million
square meters, or 55 percent of quota-free apparel. US imports from other countries declined by 91
million square meters in these categories.

Europe also is feeling the effects of a quota-free market, according to Cass Johnson, president,
National Council of Textile Organizations (NCTO), Washington. He said European imports of Chinese
apparel were two to four times higher in January 2005 than previously.

“[T]his sector is now in critical danger,” Johnson said. “The US government must move now to get
the safeguard process started and give the industry the relief it was promised as part of the China
accession agreement.”

Chinese finished product prices in these quota-free areas have fallen sharply, with the average
price going from $3.79 per square meter in 2001 to $1.21 per square meter in 2004 – a 68-percent
decrease overall, further broken down to a drop of 55 percent for apparel and 83 percent for
finished textile products, according to the DOC.

A recent NCTO analysis shows Chinese apparel prices averaged 58 percent below those from other
countries in the global market including India, Pakistan and Bangladesh; and 76 percent below US
prices.

March 1, 2005

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