Fabric Week In New York

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European Preview set up a special display to provide attendees with an overview of fabric
trends presented at the show.


F
 abrics from Europe, Turkey and Asia, along with surface design from international
studios, attracted record numbers of buyers to a series of shows held recently in New York
City.

All of the shows, which previewed fabrics for Spring/Summer 2006, were impacted by the
euro/dollar exchange rate and textile imports from low-wage countries. Although the falling dollar
drove up prices of European fabrics, the 137 exhibitors at European Preview reported excellent
reactions to their new lines from the more than 3,000 visitors who attended the show.

The range of fabrics shown by 49 companies at the Turkish Fashion Fabric Exhibition (TFFE),
organized by the Istanbul Textile and Apparel Exporters Association (ITKIB), included classic
suitings, denims, knits, prints and shirtings. Buyers came from firms such as Calvin Klein, Gap,
Paul Stuart, Ralph Lauren and Tommy Hilfiger. Innovation Asia, organized by Lenzing AG, Austria,
showcased 23 mills from China, Hong Kong, Japan, Korea, Taiwan and India. Many of the exhibitors
are vertical, selling yarn, fabric and apparel.

Two shows that focus on surface design, Direction and Printsource, have expanded their scope.
This year, there were about 150 studios from Europe, Asia, Israel, and North and South America at
each show.


European Preview

Now in its 10th season, European Preview has a waiting list of exhibitors. The mix of
participating companies and their focuses are changing. Absent this time were many that sell
expensive fabrics aimed at couture markets, such as Bianchini, Bucol, Mantero, Ratti and
Solstiss.

Frans Damide, president and CEO, Solstiss/Bucol America, New York City, said that when the
dollar and euro were on a par, firms in designer and bridge markets would shop his lines for that
something extra. “We know how to reach our regular customers. It was the surprise visits by those
we don’t work with on a regular basis that made it a good show for us. Now they cannot afford us,”
he said.

This sentiment was echoed by others at the show. Picking up on that something extra, exhibitors
showed fewer basic fabrics. Quality, novelty and performance fabrics give more individuality.

At Milior S.p.A., Italy, the emphasis was on new finishes. The company showed compact cottons
and linen/nylon blends with enzyme finishes to give them an ultra-soft hand, overdyed printed
canvas, diamond finishes, washed fabrics and yarn-dyed twills that can be overdyed or garment-dyed.
Paper yarns in thick, shiny/dull weaves are bulky and lightweight. There is a lot of stretch and
special weave effect. According to Milior, jacquards and prints will be added.

Ulster Weavers Apparel Ltd., Ireland, showed new finishing treatments, blends and textures.
There are metallic and chintz surfaces that keep their luster through multiple washings, crinkles,
seersuckers and stretch linens. Linen is sometimes blended with Supima® cotton, Tactel® nylon or
viscose. Some linens are subtly printed with gold and silver. There also are yarn-dyed shirtings in
linen/Lycra® blends, and summer tweeds designed for golfwear.

Donna Karen used lace from Solstiss in this evening dress.

Fred Rottman, who heads the New York City office of Italy-based Picchi Mills S.p.A., said
Picchi’s line is more refined than in seasons past. There are linens and linen/cotton blends with
pearlized coatings, and blends that have been polyurethane-printed. Matte/sheen jacquards that have
dimensional patterns are available in a wide range of weights, and are woven in acetate/viscose/
cotton blends. Tweeds and jacquards at France-based Tournier and Fils are woven with fancy yarns in
multifiber blends of cotton/viscose/ silk/linen, often with nylon or Lurex® added for a subtle
touch of shine. Pearly pastel shades and tonal colors were pointed out. Another France-based firm,
Isoule Textil, mentioned interest in whitened colors, black and white, and touches of sparkle.
Stretch linens, silk tweeds and shantung are some of its early offerings. Tintore-Turull S.A.,
Spain, showed yarn-dyed plaids of 100-percent linen that are overdyed with silver and washed to
give them subtle luster and a slightly faded appearance. Cotton piques  have been treated in a
similar fashion. There also are dyed and piece-washed rustic linens, jacquards and piques.

 Lanficio Lamberto, Italy, displayed sheers, stretch and jacquards in linen and blends.
There are crinkled stretch fabrics with metallic stripes, dvndigo dyes that have a refined denim
look, pleated sheers with ribbon flower appliquand opaque/sheer linen checks. At Wilhelm Becker,
Germany, customers are looking for novelty and fabrics with hidden functions. Armani buys jacquards
here. There are large-scale jacquard-weave herringbones, natural stretch crepes that don’t wrinkle,
summery cotton tweeds, and stripes woven with a cotton warp and stretch nylon weft. Nanotechnology
imparts soil-release finishes. Bamboo yarns are popular. Fabrics with a dry hand are selling well
in Europe, according to the company.


Fabrics With Memory

Fabrics with a high percentage of metal are called memory fabrics because they keep their
wrinkles when they are crushed, and can be hand-smoothed. Steel turns up frequently. Metal has made
a strong comeback at Schoeller Textil AG, Switzerland, which introduced it to its line several
years ago. One of the newest fabrics is a lustrous, iridescent taffeta woven in a blend of 75
percent metal/20 percent nylon/5 percent elastane. Schoeller reports color-reverse, lightweight,
soft-stretch fabrics finished with 3XDRY® technology also are selling well. They are wind- and
water-repellent and breathable, and provide moisture control. Linea Tessile Italiana S.p.A., Italy,
has linen/steel blends in 180-grams-per-square-meter (gr/m2) jacquard weaves that have a soft
touch. Bright shades of yellow, orange and tomato red sometimes are combined with brown or black.
There are sheer satin stripes printed with spots and splashes of metal, printed and embroidered
polyester/ viscose crushed satin, and light silk shantung. Prints are large in scale and have an
Oriental or Indian look. Dvinens in weights ranging from 190 to 300 g/m2 were pointed out.

Reynaud Rexo, France, specializes in cocktail and eveningwear fabrics. It is showing shiny
taffetas and organzas woven of 70-percent polyester and 30-percent metal. Some have ombre grounds.
Philea Textil, France, is showing metal covered with cotton. Many fabrics in this line are woven
with novelty or printed yarns. Shiny stretch shantung, lustered taffeta, pigment-dyed crinkle
crepes washed to give a vintage look, stretch satiny washed twills and multicolored chenille
stripes are some of the firms best sellers.


Sportswear

For sportswear and outerwear, Olmetex S.p.A., Italy, has polyurethane-coated lightweight
iridescent taffeta woven in a blend of metal/micropolyester. Many fabrics in this line are
color-reverse, coated and water-repellent. Some have enzyme finishes; others have a rubber touch.
Polyester microfiber/silk blends have been splattered or crystal-printed in circle patterns. There
also are soft linens with a denim look and bonded Mackintosh-type fabrics.

The line at Frantissor Creations, France, is traditional mixed with sophistication. Neutrals,
muted brights and pastels are shades of note. Cotton/nylon twills are jacquard-patterned and
embroidered for a rich look. Spain-based denim specialist Tejidos-Royo has developed dyeing
techniques for special effects. Yellow-core-yarn denim is overdyed with indigo. When it is
sandblasted, the yellow comes through to give a vintage look. Denim woven with multicolored yarn
and indigo-dyed has a mottled look when the fabric is abraded. There are comfort-stretch denim with
1-percent Lycra and pigment-dyed slubbed denim. Flocking is a specialty of Wonder S.r.l., Italy. It
is done on a variety of fabrics from denim with a distressed look to iridescent cotton and linen.
Some of the fabrics are soft and sueded. There are large- and small-scale coordinating
patterns.


Knits

Innovation and performance are key in the knit sector. Switzerland-based Greuter-Jersey AG had a
good reaction to fabrics knitted with its Clima yarns. Spun with Meryl® Nexten/cotton/Micromodal®,
these yarns have moisture-transport, insulation and fast-dry properties. Another yarn, Clima Plus,
is bacteriostatic. Dryarn® jersey contains micro-polypropylene. It is soft, water-repellent and
odor-free. Another yarn contains microcapsules of aloe vera that remain effective through 10
washing cycles. At Marioboselli Jersey S.p.A., Italy, there is a group of fabrics knitted of
94-percent linen/6-percent Lycra. They are lightweight and slubbed, and have a dry hand. Another
group includes fluid, soft and sheer fabrics that contain Modal®/nylon or viscose/Lycra blends.
Jacquards of 100-percent linen are styled for T-shirts and beach dresses. Swimwear knits are
dazzling gold, smooth and slippery.

Tom Cody Design combined prints and embellishments at Printsource for bohemian and gypsy
looks.

France-based knitter Billon Freres has a group of tight stretch knits created for yoga and
performance apparel. Knit of Meryl Microfiber with 13-percent Lycra, they have brightly colored,
dimensional patterns. Other fabrics include printed opaque/sheer stripes, shiny/dull jacquards,
puckered and lacy knits and iridescent mesh. There are bright stripes with touches of Lurex, new
paisleys and yarn-dyed jacquards with global ethnic influences.


Silks

Collections in the silk sector are dazzling, woven with metallic yarns, appliques with sequins,
luster-coated and brightly printed. “It’s color, color and color,” said Susanne Tamavongs,
export/sales manager, Weisbrod-Zuerrer AG, Switzerland. Warp-printed jacquards in garden-bright
shades and global ethnic designs are some of the firms early ideas. It will be adding ink-jet
prints on silk and cotton jacquards.

Gratacos S.A., Spain, showed an ultra-sheer memory fabric woven with nylon/polyester/metal.
Iridescent organza woven with 67-percent silk/33-percent Lurex has a glittery cellophane
appearance. There are printed shantungs appliques with beads and sequins, and jacquards that have
shiny coated finishes.

At  A.B. Creations by France-based Fabien Doligez, textures, patterns, weights and
treatments coordinate. There are cotton sateens and voiles with groups of prints that work
together, yarn-dyed raschel knits in stripes and zigzags that coordinate with one another and with
stretch seersucker, color-reverse jacquards and groups of global ethnic designs. There also are
sparkling woven or printed fabrics that contain metallic yarns, and coordinating cotton/steel/nylon
stripes and solids that have a casual elegance.


Prints

Splashes of glitter, bursts of color, cool linens, and sheer silks and cottons are favorite
printed fabrics. At Miroglio S.p.A., Italy, there is more silk than in seasons past; a lot of print
designs have a tendency towards high fashion and away from basics. There are printed silk chiffons
with Lurex, as well as lacy meshes and viscose crinkles. Prints range from rich, urban ethnic
designs to newly styled skins and paisleys. Many have touches of gold; most are large in scale or
very small and neat. Pasarela S.L., Spain, specializes in polyester. Sometimes it is blended with
viscose or Lycra. Many of the base fabrics are jacquards and piques. Tie-dyed grounds are
overprinted with flowers or African designs. A group of Victorian-inspired flowers is printed to
look like crewel embroidery.

France-based Komar is printing on linen/viscose and linen/cotton fabrics. Border patterns are
richly colored. There are feminine flowers printed on cotton lawn or stretch bottomweights, and
gypsy-inspired ethnics. Black and white, chalky pastels, and rich bright shades are shown. Texture
and embellishment are in abundance. Spicy colors and whitened pastels containing Lurex are at
France-based Chaine et Trame S.A. Global ethnic patterns on mesh, voile or rayon/spandex knits were
pointed out. There are paisley variations colored in olive/turquoise/orange or plum/
pink/olive.


Turkish Fashion Fabric Exhibition

According to ITKIB, textile and apparel production in Turkey account for 32 percent of total
export earnings. In 2004, it reached $17.6 billion. Turkish fabrics are basic, of high quality and
priced lower than European offerings, but higher than Asian. Bossa, part of the Sabanci Textile
Group, has become the largest integrated textile company in Turkey, with five manufacturing plants
producing outerwear, shirting, denim and sportswear fabrics. Sportswear fabrics for womenswear were
shown in crisp-touch fabrics in pastel colors with dimensional effects. Madeira, orange and green
were prominent colors. All-cotton, no-iron shirting fabrics are one new innovation at Bossa;
another is antibacterial treatments. Designs include dobbies, jacquards and stripes. There are
cotton/ nylon stretch fabrics, cotton/linen textures and crepons. Colors are toning down and less
sharp than they were a year ago. There is a lot happening in the Bossa denim division. All Bossa
denims are ring-spun. Based on market demand, the company is adding capacity with new spinning
frames and new looms. A patchwork denim blanket showed 11 different colors sewn together. It was
stonewashed for 90 minutes to give customers an idea of how different dyes react. According to the
company, Europeans have opted for greener-cast denim; customers in the United States are buying red
casts. Bamboo-content denim is a success story. It offers a soft hand and subtle luster. Stretch is
selling well in menswear, especially comfort stretch with 1- or 2-percent spandex.

The Turkish Fashion Fabric Exhibition presented fabrics from 49 companies.

At Altinyildiz, linen and linen blends in classic yarn-dyed checks are popular. New finishes
give fabrics a silk touch. Bottomweight twills dyed in metallic colors and washed were pointed out
at Dynamo. Linen/cotton canvas, multicolored striped shirtings and slightly crinkled surfaces are
other fabrics of note.

At Btd, New York City-based agent Francesca DeVito said summer bottom- and suitweight fabrics
are among its current best sellers. She pointed out stretch polyester/ viscose/spandex twills in
solids, classic checks and suiting stripes; and for casualwear, she showed a sateen of 97-percent
cotton and 3-percent spandex.

Linen fabrics have a crisp hand or are enzyme-treated for a velvet touch. “Our fabrics have an
Italian feel at lower prices,” she said. At Yunsa, color and texture are emphasized. Crepe weaves,
dobbies, linen/viscose, cotton/viscose and washable wool/polyester/Lycra suiting fabrics are
popular. Knitted fabrics at Sucuka are ultra-soft. There are sheer flocked nets, lacy knits,
metallic prints and crinkles. Nylon with a cotton touch and nylon/Lycra blends are selling to the
lingerie market.

Kokteyl has cotton/bamboo/spandex knits that are going into sportswear. Organic cotton with
moisture-transport properties, silky-touch Tencel/spandex and viscose with silk nubs are other new
items. Popular prints at Confetti Fabrics include African and South Sea Island motifs. Base cloths
include cloques, burn-outs, and matte/sheen stripes and jacquards.


Innovation Asia

Basic yarns, fabrics and garments at good prices attracted buyers to Innovation Asia, a showcase
of products containing Tencel and Modal. Of special interest was a new compact spinning process
called Ecosil developed by Korea-based Samil Spinning Co. Ltd. Fine, smooth yarns that are less
hairy than ring-spun or open-end yarns are produced. The price is the same as that of ring-spun
yarns. Ecosil is being used for knitted and woven fabrics for apparel and the home.

Nam Kwang Textile Co. Ltd., Korea, is using Ecosil yarns for knitted fabrics. Especially popular
are stripes that have been washed for a vintage look.

Mozartex Co. Ltd., China, is selling Tencel/cotton with a soft touch to Dockers for pants. There
are Tencel/polyester/cotton fabrics with water-repellent finishes that last through 30 washings,
embossed fabrics that have the look of jacquards, embroidered shirtings, yarn dyes and pigment
prints.

Willgold Industrial Co. Ltd., Taiwan, reports dobbies, jacquards, yarn-dyed stripes and prints
that have been enzyme-washed for a peach-skin hand are of interest. They are knitted and woven with
Tencel or Modal blended with cotton, linen, nylon or polyester.


Upstairs/Downstairs For Print and Pattern

Direction and Printsource, two shows that specialize in surface design, are held at the same
time and at the same location. Printsource is held in the Hotel Pennsylvania Penthouse Pavilion,
while Direction is held at street level in the Penn Plaza Pavilion. Not only do the shows attract
the same buyers, but some of the same exhibitors are at both shows. Tom Cody Design, which has
locations in New York City and London, and New York City-based Splash Ltd. showed sophisticated
designs for womenswear downstairs; fabrics for juniors and childrenswear were shown upstairs.

Tom Cody’s upstairs look was whimsical, with bold stripes and borders in rainbow colors and
carnival-inspired prints in sorbet colors. Downstairs, there were gypsy bohemian looks in earthy
shades and sheer romantic patterns for tops. Prints and embellishments often are combined. All were
shown on fabrics shaped to suggest a finished garment. Cody’s customers run the gamut, from fabric
converters to garment manufacturers and retailers. His best seller is a newly styled paisley. The
emphasis at Splash was on global ethnics, with prints shown on batik and ikat grounds. They are
selling to all markets, including boys, swimwear and sleepwear. Tonal tropicals and placed designs
were pointed out.

Brazil-based Santa Mistura, representing 24 Brazilian designers, was a new exhibitor at
Direction. Print styles for apparel and the home vary from ethnic to abstract to romantic at this
design firm. All are created using Pantone colors.

Ethnic print nationalities run the gamut, from African tribal, South Sea Island tropical and
Japanese ikat to European gypsy, Aztec, Incan and Native American. The newest prints are globally
inspired, combining motifs of many countries. The Colorfield Design Studio and Marilyn Kern Textile
Designs Inc., both based in New York City, showed global ethnic designs. Paisleys at Colorfield
have a gypsy look, while linear and geometric designs have a Bauhaus look, and flowers are small
and detailed or combined with geometrics. At Marilyn Kern, flowers are botanical or small in
scale.


Scottish Cashmere: Maintaining Quality

The Scottish Cashmere Club recently embarked on a brand campaign, Truth in Cashmere, to alert
the textile, fashion and retail industries that there are differences among cashmere products.
“Cashmere isn’t just cashmere,” said Graeme Sands, consulting project manager and spokesman for the
club. “A product with the Cashmere Made in Scotland hang tag is manufactured in Scotland to the
highest level of workmanship.” Membership in the club is limited to Scotland-based yarn spinners,
weavers and knitters that conform to the strictest standards of fiber, yarn and manufacturing
quality. Yarns must be 100-percent cashmere spun in Europe. Fibers must be Chinese or Mongolian in
origin, and must be a minimum of 34 millimeters in length and have a maximum thickness of 16.5
microns. Products are tested, starting with the fiber and continuing through every stage to the
finished product, whether yarn, apparel, accessories or home furnishings. There are multiple tests
to ensure that Cashmere Made in Scotland fully lives up to its reputation as the highest-quality
cashmere in the world. Yarn-spinner members of the club are Todd and Duncan and Z. Hinchliffe and
Sons Ltd. Weavers include Begg Scotland, Johnstons and Lochcarron of Scotland. Others involved with
knitwear and accessories are Ballantyne Cashmere, Hawick Cashmere Co., John Laing of Hawick Ltd.,
Murray Allan Cashmere, Peter Scott and Co. Ltd., Scottand Charters (Havick) Ltd. and William Lockie
and Co. Ltd.

Johnstons, a member of the Scottish Cashmere Club, produces cashmere knitwear.

Members have invested in the latest state-of-the-art technologies. Forget the stodgy reputation
frequently associated with Scottish woolens. Colors, weaves, patterns and textures going into
Scottish cashmere products are versatile and fashionable. Members are creating new concepts each
season and working with customers through the supply chain to deliver quality products that have a
luxurious look; soft, sensual touch; and a high level of performance.

“Washing Scottish cashmere improves its bloom,” Sands said. “Properly handled, there is less
pilling and greater durability. We want the trade and consumer alike to be aware of the difference.
Cashmere with our Cashmere Made in Scotland hang tag lives up to its reputation for integrity in
fashion and quality.”

All branded product must be sold as first-line merchandise; discounts should never be
applied.

Cashmere quality control also is an issue in the United States. Commenting on quality control at
the retail level in the United States, Karl Spilhaus, president, Cashmere and Camel Hair
Manufacturers Institute (CCMI), Boston, mentioned that one of the functions of CCMI is to test
products purchased at retail to verify fiber content and performance that is listed on hang tags
and labels. “You’d be surprised at how many major and prestigious retailers have mislabeled
merchandise, and how many times we have sued them,” he said.

March 2005

Industry Seeks Relief From Chinese Imports

Textile and apparel trade data for January – the first month after removal of import quotas –
show a major surge in Chinese imports, triggering calls from textile manufacturer for the US
government to act immediately on a process that could result in new import quotas on Chinese
imports. Industry and labor representatives in Washington called on administration trade officials
to self initiate the so-called safeguard mechanism provided for in the Chinese Word Trade
Organization (WTO) agreement. Industry representatives and the labor union UNITE HERE have filed a
number of petitions asking for safeguard quotas based on market disruption or a threat of market
disruption. The threat approach currently is being blocked by court action in a case filed by the
United States Association of Importer of Textiles and Apparel (USAITA) .The January data show a
47-percent increase in Chinese imports in January including an increases of 1,000 percent in cotton
trousers. Other major increases were recorded in men’s, women’s, boys and girls cotton shirts and
several other categories of trousers and underwear. The data show that China has a 35-percent share
of the US import market for textiles and a 22-percent share for apparel. The overall market share
of 29-percent is the highest of any single country in history. Somewhat surprisingly, imports from
Hong Kong, Macao and Taiwan were down about 25 percent, a development that industry trade officials
say is a reflection of China’s cutting back on transshipments through those countries. Caribbean
Basin Initiative countries showed a 16-percent increase in what could be a reflection of importers
looking to nearby countries for more of their sourcing. Industry officials say that because
Januarys import numbers contain a significant amount of goods shipped from China while China was
still under quota restraints the figures are only a portent of what is to come.

As the data were released, Bruce Raynor, president of UNITE HERE, issued a statement at a
Washington news conference: Quotas have expired, imports from China are soaring, and nearly 10,000
apparel and textile workers have lost their jobs in the first 60 days of 2005. These job losses
highlight the immediate need to implement the China safeguard. The US government has the power to
act and it must do so immediately.

Claiming the Chinese import surge is just the tip of the iceberg, Auggie Tantillo, executive
director of the American Manufacturing Trade Action Coalition, said: “If history is any indication,
Chinese imports will continue to soar until they gain a virtual monopoly of the US, market. If the
US government fails to act immediately to implement the WTO safeguard, it will be an act of
reckless disregard of the available evidence, costing hundreds of thousands of US jobs as a
consequence.”

US government trade officials expressed their concern over the import surge and indicated they
are looking at ways to limit imports from China. Actions could range from negotiated quotas to
imposition of unilateral quotas under the safeguard provisions.

Reacting to the data, USITA said, “There is no current basis for safeguard measures whether self
initiated or by request of the U.S. industry.”



March 1, 2005

Sato Launches GT E Series Industrial Barcode Printers

Sato Corp., a Japan-based supplier of barcode printing, labeling and electronic product code/radio
frequency identification solutions, reports its new Web-enabled GT e Series industrial barcode
printers are the most intelligent printers in their class. The printers feature Sato Embedded Basic
Language, which allows users to create customized stand-alone programs and load them into the
printer. It also enables the printer to interface directly with external devices and process data
received in stand-alone mode without connecting to a personal computer. Print speed equals 12
inches per second at 305 dots per inch (dpi), and allows users to set print resolution at 203 dpi,
305 dpi or 609 dpi. The printers also feature Web-based Printer Control Plus to allow control via
any Web-enabled device.

March 2005

Yarn Mills Run Strong


S
 pinners, mainly with ring and open-end (OE) systems, report they are running at or near
capacity.

“We are running at full capacity with good demand and a strong backlog,” said an OE spinner. “
The apparel business was the strongest segment during January. The weaving and upholstery
businesses are good for us, as well as yarns for package dyeing. Yarns for the automotive market
are slow at this time.”

“We saw the usual slowdown during Christmas and gained a little bit of inventory,” said a
multisystem spinner. “We came back to normal operations the second week of January or so. We are
basically selling what we are making.”


Q1, Q2 Look Solid

Carded and combed ring-spun yarn demand is steady. Military orders have materialized, increasing
nylon yarn production. The OE market is tight; customers are fishing around for additional
capacity.

“Our strongest quarter traditionally is the second quarter,” said an OE spinner. “I am
pleasantly surprised with our business for the first quarter, as it is normally quite slow.”

“Business looks pretty good through the first quarter and probably into the second quarter. I
have no clue beyond that,” said a ring spinner.

While the T-shirt market usually starts around March or April and runs pretty strong through
the first of the summer, it looks like it may be starting a bit early this year.

“We are still very positive,” said a multisystem spinner. “We are still not sure what the
impact of the elimination of quotas will be. Our business continues to be strong. It has lightened
up a bit on the weave side, but the knitters continue to be extremely busy.”

Spinners surveyed this month reported doing some export business, primarily to Central
America. One said exports to the Caribbean Basin region accounted for about a third of his company’s
business.


Pricing Paradox

Cotton fiber prices have stabilized and are not expected to rise anytime soon because of
projected oversupply. Spinners continue to keep their eyes on man-made fiber prices. They report
polyester prices have stabilized, but have not come down. This has really squeezed the mills since
it’s next to impossible for them to pass on the increase to customers.

“Man-made fiber prices have to stop somewhere,” said a ring spinner. “At some point, it is
going to price itself out of the market.”

Yarn prices, on the other hand, have come down substantially since Christmas, along with
decreases in cotton prices. At the same time, spinners have struggled to hold pricing high enough
to cover polyester price hikes. The consensus seems to be that yarn prices are stabilizing.

“We were able to hold some of our prices due to polyester price increases, but it goes up in
pennies and comes down in nickels and dimes,” said a multisystem spinner.


Waiting To See On Safeguards

Mill executives want to see the threat-based China safeguards initiated but have some doubts
about the US government’s commitment to them.

“Unfortunately, the retail industry has managed to get an injunction to halt the China
safeguard issue — at least for now,” said an OE spinner. “Without the safeguards, we are looking at
some devastating consequences for US textile mills, as well as most other manufacturing sectors in
the United States.”

“I don’t think China safeguards or any other governmental action is going to have much of an
impact,” said a ring spinner. “If you are going to survive, you better do it on your own, and don’t
look for Big Brother to help.”


18-Million Bale Crop Projected

US cotton producers intend to plant 13.7 million acres of cotton this spring, up 0.6 percent
from 2004, according to the National Cotton Council’s 22nd Annual Early Season Planting Intentions
Survey.

Upland cotton intentions are 13.5 million acres, an increase of 0.5 percent over 2004
plantings. Extra-long-staple (ELS) intentions of 255,000 acres represent a 2.3-percent increase
over 2004. This would yield an estimated 18.2 million bales of upland cotton and 691,000 bales of
ELS cotton, compared to 2004’s total production of 23 million bales, according to the US Department
of Agriculture’s estimate for January 2005.



March 2005

A Still-Fuzzy Trade Picture


F
 oreign trade uncertainties continue to dominate the overall industry picture. Will US
mills be successful in having Uncle Sam consider petitions to curb imports of foreign products?
What kind of upward revaluation in Chinese currency (the yuan) can we expect? How will the Central
American Free Trade Agreement (CAFTA) eventually play out?

Most mill executives are worried, fearing CAFTA as currently negotiated will give China a
backdoor entry into our market — primarily by allowing Central American garment makers in certain
cases to use foreign-made fabric and still send finished clothing to the United States duty-free.
Some administration officials say this fear is overblown, noting that smuggled fabric shouldn’t
prove to be a problem since less than 9 percent of the fabric content of US CAFTA clothing imports
over the past year consisted of foreign-made material. They also argue that CAFTA garment makers
will have a greater incentive to stay in the Western Hemisphere and thus make them more likely to
use US-made textiles.

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Impact On Prices

These uncertainties are beginning to have some effect on clothing tags, making US importers
think twice or maybe even three times before putting all their eggs in the super-cheap Chinese
basket. The 15- to 20-percent decline in garment prices predicted last fall is not materializing.
There have been some spotty weaknesses, but as of today, there’s precious little evidence of any
big tumble.

The currency question mark is having its effect, for any upward yuan revaluation would make US
imports from China more expensive. The Chinese have been under mounting pressure to correct the
exchange rate imbalance. No one expects the big 35- to 40-percent upward revaluation some say is
needed, but most economists are convinced some slow, steady increase in the yuan’s value is
inevitable as the year wears on. Other price-firming factors that may be playing a near-term role
include previously unmentioned US quota and CAFTA uncertainties, new retailer attempts to shore up
badly depleted margins, rising oil and other raw material costs, rising shipping costs, attempts to
improve quality rather than cut prices, and even some concerns that today’s swift Chinese expansion
could lead to some production bottlenecks in that country.


2005 Demand

Demand seems to be holding up. Latest government data show mill production and shipments remain
pretty much at year-ago levels — a lot better than the declines of other recent years. A new
Institute for Supply Management survey suggests this pattern is continuing into early 2005. Part of
this leveling off can be traced back to the trade questions discussed above. Equally important,
however, is today’s still improving macro-economic picture. Most analysts project 3.5-percent gross
domestic product growth for the year as a whole. Add in a slowdown in productivity gains, and this
could mean the addition of about 200,000 jobs per month. This should probably be enough to permit a
nearly 5-percent increase in wage and salary income — more than enough to keep consumers in a
spending mood. As such,

TW
 now sees apparel sales rising another 4 percent or so this year — hitting a peak of nearly
$180 billion. This extra spendable income would also seem to assure further gains.

Upshot: 2005 textile mill activity, despite all earlier gloom-and-doom talk, may yet end up
pretty close to overall 2004 levels.


Statistical Note

Thanks to new government data, the Textile Mill Products Price Index is being revised by
splitting it into two subsectors. One reflects trends in basic textile mill prices. The other
traces price performance in the more highly fabricated textile product mills sector. This permits
comparison with similar breakdowns that were made available in other such textile areas as
employment, earnings, sales and inventories. While both new price measures show little upward
movement over the past year, performance has generally been a bit more robust in the textile
product mills sector, where foreign competitive pressures haven’t been quite as severe.


March 2005

Termodyeing

Termoelettronica offers the Termodye-M semi-automatic dissolving system.


I
 n identifying priorities within the dyehouse, Italy-based Termoelettronica S.p.A.
emphasizes recipe repeatability and reduced number of lots rejected due to offshading, the unequal
tonality of color from dyeing to dyeing. Termoelettronica has demonstrated this emphasis through
its dyeing solutions. Without making large investments in automatic dosing systems, it is possible
to reach such objectives as recipe repeatability and a reduced number of rejected dye lots through
the monitored weighing of dyestuffs using the company’s Termodye-M semi-automatic dissolving
system, according to Termoelettronica. Dissolving the dyestuff can easily be managed in a
centralized area in order to eliminate the problems related to the transporting of dyestuff near
individual machines, which can lead to contamination and above all, misdosing the possibility of
dosing the recipe in a machine for which it is not intended. The system essentially consists of a
series of dissolving tanks, equipped and prepared for dissolving the dyestuffs, the number of which
is determined by the number of dyeing machines to be fed.


Choosing The Most Suitable Installation

To help determine which plant installation best fits a companys needs, Termoelettronica offers
several suggestions.

An installation might be considered that focuses on dyeing machines with only a preparation tank
without a supervision system with an average load capacity of 600 kilograms. In this case,
Termoelettronica would suggest a single dissolving tank for every five to six machines in order to
save time and avoid delay of dyeing operations. Obviously, if there is a supervision system in
place that allows the preplanned applications of various dosings, the number of machines that could
be fed can be increased. However, it is important to consider that the latest-generation dyeing
machines, such as the MULTIFLOW® from Italy-based MCS, have significantly reduced the dyeing times
so that they take less than half of the time of earlier dyeing cycles. So, even with modern and
fast machines, a company should consider installing a dissolving tank for every five to six
machines.

The dissolving system is managed by microprocessors linked by a barcode reader to
additional dyehouse supervision system safety devices.

Regarding the capacity of the single dissolving tank, Termoelettronica typically supplies
several tanks, one of 300 liters and the other of 500 liters, to allow flexibility of options.
(Consider that the dissolution and/or the dispersion of a dyestuff is effected, if not in
particular cases, with a liquor ratio that varies in the range of 1:5 and 1:10.)The particular
design of these dissolving tanks allows one to dissolve minimal dyestuff quantities in 20 to 30
liters of water. Nevertheless, the distance the dye must travel must be considered. A food
electrocleaned type pipeline with an external diameter of 28 millimeters (mm) and a thickness of
1.55 mm is used to distribute dye to the various machines. Termoelettronica uses air to reduce the
volume of water necessary to wash the line, so a minimum amount of water is required to clean the
tanks.


Hot Water

Consideration of the water temperature might seem a little trivial, but it is of notable
importance in the dissolving process of powdered dyestuffs. To obtain the best dissolution, it
would be ideal to use demineralized water, but sweetened water of various degrees of purification
certainly is acceptable. Termoelettronica recommends using warm water at the correct temperature
linked to the class of dyestuffs that must be dissolved. The method proposed by Termoelettronica
enables the monitored mixing, managed by a microprocessor, of two water flows constantly maintained
at two temperatures of 40°C and 90°C (using indirect steam). In this way, an appropriate volume of
water immediately is available at the desired temperature. This procedure allows a rapid
dissolution of the dyestuffs and allows the solution to be fed to different machines using a single
dissolving tank.

Different size dissolving tanks are equipped with a mixer, three level probes,
indiredt/direct steam water and safety proximity devices.

March 2005

Chinese Export Duties Don’t Mean Much


I
 nternational trade experts don’t expect the Chinese government’s plan to levy duties on
its exports of textiles and apparel to have much, if any, effect on what is anticipated by many as
a surge in Chinese exports to the United States and other developed countries. As quotas on textile
and apparel imports were being removed last month, the Chinese government announced it would
levy export duties on textiles and apparel in an effort to allay fears of importing nations,
particularly the United States, that China would quickly dominate world trade in textiles. Many
feel the duties are simply a gesture on the part of the Chinese to discourage the US government
from taking more forceful actions – including reimposition of quotas – to stem the growth of
Chinese imports.

China said initial duties will amount to 3 to 8 cents on 148 varieties of textile items
in six product categories that include outerwear, dresses, pants, knitted and non-knitted blouses,
and underwear. Duties will be levied on an item basis rather than on the value of the goods, which
would encourage the exportation of more high-end products. While importing nations dismissed the
impact of the surcharges, some Chinese government trade officials said the duties are “a good
beginning” and that they could be increased in future trade negotiations.

Cass Johnson, president, National Council of Textile Organizations (NCTO), Washington, said
the duties are “inconsequential,” as they are far too small to have any real effect on trade. He
believes the duties would have to be some 30 to 50 percent of the value of products in order to
make any impact, and he seriously doubts China would be willing to go that far.

Eric Autor, vice president and international trade council, National Retail Federation,
Washington, does not see any major impact of the duties, except that they might encourage China to
put more emphasis on high-end goods and possibly leave the lower-end commodities to less developed
countries. That could be important in connection with the ongoing trade liberalization negotiations
at the World Trade Organization (WTO), he said, as China would be sending a signal that it is
willing to control its exports. Autor does not think the action will deter domestic
manufacturers from filing anti-dumping cases and pursuing the safeguard mechanism route to new
import quotas.

Following a series of meetings with Chinese officials in Beijing, outgoing Secretary of
Commerce Donald Evans said he did not think the Chinese tariffs would make any difference. “I
just don’t think the steps of putting a few cents tax on exports, or a few of the other steps, are
going to have any meaningful kind of impact on the ultimate structure of the textile
industry.”


Importers Want Vietnam’s Import Quotas Removed


Domestic importers of textiles and apparel are urging the US government to remove quotas on
imports from Vietnam. In letters to the US Trade Representative and the Secretary of Commerce,
the United States Association of Importers of Textiles and Apparel (USAITA), New York City, said
continuing the quotas “undermines the ability of American firms to do business in Vietnam
competitively and limits the choices available to American consumers.”

Pointing out the European Union (EU) and Canada recently abolished their quotas, USAITA said
continuation of quotas would restrict sourcing opportunities for importers. The association also
noted continuing quotas would run the risk that when Vietnam makes decisions regarding investments
and market opening, the EU and Canada would be perceived as closer allies than the United States.

Vietnam, which is not a member of the WTO, did not benefit from the abolishment of quotas at
the end of 2004 by all WTO members. At present, Vietnam is not a major exporter to the United
States, as its total shipments of textiles and apparel in the past 12 months accounted for just
under 2 percent of US imports. However, Vietnam is of interest to importers as an alternative to
becoming too dependent on trade with China.


Research Focuses On Competitiveness


As textile manufacturers face a changing and increasingly competitive world, some $12.9
million of government-funded research is focusing on product innovations and new manufacturing
techniques designed to help the US industry compete.

During the coming year, the Department of Commerce will grant some $10 million for a variety
of projects at the National Textile Center, a consortium of eight textile colleges and universities
that are heavily involved in developing some pretty exciting new products and manufacturing
techniques. One promising area is the development of a super repellent for fabric that far exceeds
anything seen up until now. Another project in the works is developing methods for maintaining
the integrity of colors as they move through various stages of production. Innovations in ink-jet
printing hold out the promise of more economical, high-speed printing that can result in smaller
inventories and the ability to respond more quickly to fashion and product changes.

An intriguing new area is the development of biomedical bandages that combine fabric
and chemicals to promote more rapid healing. An important initial application is for burn victims,
but researchers feel biochemical textiles will have a great future with a wider variety of
applications. Also in the works are improved personal protection products for first responders
such as police officers, firefighters and people dealing with hazardous materials.

At the Textile/Clothing Technology Corp. ([TC]2), Cary, N.C., a $2.9 million grant is
supporting research into new product development and techniques to make manufacturing more
competitive by shortening the production cycle. Of particular interest, in view of the textile
industry’s emphasis on hemispheric trade, is a major effort to help companies put together full
packages with allied companies in other countries. Work is being done on ways to help apparel
manufacturers move easily from 3-D body scanning to 2-D patterns. The goal is to generate new
patterns with shorter cycles in order to get products to market sooner. [TC]2 also has
introduced a new low-cost body scanner that will reduce space requirements and costs in the
increasingly important made-to-measure business.

bodyscanner_Copy
Textile/Clothing Technology Corp.’s [TC]2’s new low-cost body scanner is reduced in size to
45 square feet.

Photo courtesy of [TC]2

With the federal funding, the organization also has totally updated its digital
demonstration center in order to facilitate demonstrations of innovative products and processes.

While these efforts are a step in the right direction, they cannot offset the impact of
growing imports in today’s quota-free world.


US Approves Egypt Free Trade Zones


Israel and Egypt have signed an agreement with the US government establishing three
Qualified Industrial Zones (QIZs) whose products, including textiles and apparel, can enter the
United States duty-free.

The QIZs are part of a program to promote peace in the Middle East by encouraging economic
cooperation between Israel and other nations in the area.

US textile manufacturers have been opposed to the QIZs because they use a 35-percent
value-added formula to determine the country of origin for goods eligible to benefit from the
duty-free program.

They feel such a formula causes Customs evaluation problems and could lead to an influx of
transshipments from non-participating countries.

According to Egyptian government officials, the QIZs are the first step toward a broader
free trade agreement with the United States.

In the most recent 12 months for which data are available, Egyptian exports of textiles and
apparel to the United States amounted to about $530 million.



February 2005

Rohm And Haas Sets Up Turkish Office, Names Distributor

Rohm And Haas Sets Up Turkish Office,
Names Distributor Philadelphia-based Rohm and Haas Co. — a producer of specialty materials for the
textile, paper, nonwovens, and paint and coatings industries — has opened Rohm and Haas Kimyasal
Ürünler Dagitim ve Ticaret A.S. near Istanbul, Turkey. Through the new office, the company markets
and sells its products, and provides service solutions to customers in the surrounding region.

“This office will serve the growing needs of the Central Asia and Middle East markets,” said
Haluk Ersen, COO. “Our proximity to these important markets will enable us to respond better to
their specific dynamics and requirements. Identifying and pursuing growth opportunities with our
customers is a key priority.”

In other company news, Rohm and Haas Powder Coatings has named Tikkurila Coatings Oy,
Finland, its exclusive distributor in Finland, Norway, Sweden, Estonia, Latvia, Lithuania and the
Commonwealth of Independent States including Russia.


February 2005

Acme-Hardesty To Represent VVF, Palm-Oleo In US

Acme-Hardesty Co., Blue Bell, Pa.,
has been named exclusive US distributor for mid-cut and long-chain vegetable-based fatty alcohols
produced by India-based VVF Ltd., and for bulk and packaged palm-oil-based fatty acids and
glycerine produced by Palm-Oleo SDN BHD, Malaysia.


February 2005

Intertek Labtest Purchases SDL Atlas DigiEye System

Intertek Labtest, an Indonesia-based
fabric-testing company, has purchased a DigiEye non-contact digital imaging system from
England-based textile-testing equipment supplier SDL Atlas.

DigiEye is used to grade colorfastness in fabric samples. SDL Atlas reports the unit
provides automated color evaluation down to a single pixel level.

“Intertek is a leading force in textile testing throughout Indonesia and the world,” said
Chris Lawler, sales manager, SDL Atlas. “Their investment in DigiEye grading technology
demonstrates Intertek’s ongoing commitment to utilizing the most advanced testing tools available
in the market today.”


February 2005

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