Good News On The Fiber Front


R
ecent declines in cotton tags are relieving some of the cost pressure on hard-pressed
mills. Spot quotes have been hovering in the low 40s range — some 35 percent under
earlier-in-the-year peaks, and about 20 percent under the 50 cents-per-pound and higher prices that
prevailed last summer.

Some upward correction can’t be ruled out, but it’s likely to be small, with cotton remaining
relatively soft through the rest of the year. Behind the slippage: revised forecasts calling for
higher production — with gains now projected for both US and global output. US production is now
pegged at near 18 million bales — 2.2 percent above earlier estimates and 11 percent above last
year’s level.

A not-too-uncomfortable cost picture also seems to be shaping up in the man-made fiber
sector. True, some constructions like polyester and rayon are up — but only enough to offset
weakness in other areas. Upshot: Man-made price averages are pretty much where they were last year
at this time.

p20_Copy_11


No Real Labor Headaches Either

Worker pay costs also remain pretty much under control. At latest report, average hourly
earnings in both the basic mill and textile mill product sectors were running less than 1 percent
above a year earlier. Equally important: Given estimated productivity gains over the same period,
unit labor costs have probably held steady or perhaps even declined a bit. Bottom line: Material
and labor costs haven’t been posing too much of a problem — and aren’t likely to do so in the
quarters immediately ahead.

The fact that all these costs haven’t risen — when added to the recent bottoming-out in
demand and prices — helps explain how textiles (at least on an overall basis) have remained in the
black.

The latest Census Bureau profit numbers are on the anemic side — only about $110 million on
an after-tax basis was reported in the first quarter 2004. That’s nowhere near the relatively
robust levels prevailing just a few years ago. Nevertheless, these figures do represent a positive
sign — helping to offset the import and other problems that have been plaguing the industry in
recent years.


A Near-Term Look Ahead

The remainder of 2004 doesn’t seem to be shaping up all that badly. There are a few negative
factors that could affect textile and apparel demand — namely high energy costs plus the
diminishing stimulus coming from past tax cuts and home refinancings. On the latter score, such
refinancings are expected to drop 70 percent from the second to the fourth quarters.

While these developments will slow down economic growth, they won’t stop it completely
because there’s still an impressive array of plus factors operating. These include extremely high
consumer confidence; improving personal income (rising at a 6-percent rate in the second quarter as
income and job rates continue to inch up); and current relatively low interest rates, which,
despite recent increases, remain well under levels of a few years back.

It’s a scenario that suggests 3-percent-or-so gross domestic product annual rates of gain for
both the third and fourth quarters — nothing spectacular, but probably enough to keep textile and
apparel buying at fairly firm levels.


Specific Projections

Mills are likely to fare considerably better than they did last year. Given current trends,
overall 2004 textile mill output isn’t likely to fall more than 2 to 3 percent under the 2003
level. Hardly nirvana, but a heck of a lot better than the big 7-percent decline reported last
year.

Moreover, compare

Textile World
’s second-half 2004 projections to actual second-half 2003 results, and the decline in mill
output pretty much disappears. Beyond year end, however, the picture becomes a little more fuzzy.
For one, the ending of import quotas in January is bound to have some impact. But where and to what
extent remain big questions.

Finally, there are general business conditions that traditionally become more iffy the
farther one goes into the future. Upshot: At this stage of the game, early 2005 textile mill
forecasts could be prone to considerable error. Nevertheless, a continuation of the current
flattening in demand and relatively unchanged prices is predicted — a not-all-that-downbeat
forecast given the industry’s recent declines and all the uncertainties looming ahead.


September 2004

Cooking Up Uses For Fluorocarbons


P
olytetrafluorethylene (PTFE) is more commonly known by the trade name Teflon®. Consumers
identify the name with cooking pans treated with PTFE to provide non-stick properties. Over the
last 50 years, the fluorocarbon family of polymers has grown to include polymers used in a myriad
of forms and applications ranging from high-temperature filtration and gasketing to surgical
sutures and stain-repellent agents for fabrics.

PTFE is a vinyl polymer, and its structure, if not its behavior, is similar to that of
polyethylene. PTFE is made from the monomer tetrafluoroethylene (TFE) by means of free radical
vinyl polymerization.

plastolon
PLASTOLON™ filtration sewing thread from Plastomer Technologies also is suitable for
geotextile sewing and bagging for chemical products.


Discovery And Development Of Teflon®


Fluorocarbons is not a household word, but fluorocarbons have been an important part of
households for many years. In the 1930s, chemists at General Motors and DuPont collaborated on the
development and use of chlorofluorocarbons as refrigerants to replace ammonia, sulfur dioxide and
propane, which were hazardous. The chlorofluorocarbon Freon® gradually became the refrigerant of
choice for the Frigidaire and other household and commercial refrigerators.

 

In 1936, Roy Plunkett, who earned a Ph.D. from Ohio State University, was hired by DuPont at
its Jackson Laboratory in Deepwater, N.J., to develop new refrigerants using TFE gas as a starting
point. As a result of a serendipitous discovery by Plunkett and his assistant Jack Rebok, Teflon
polymer was developed and has led to Teflon and a family of fluoropolymers used in fibers, films
and plastics in a variety of high-performance applications.


Plunkett first produced several hundred pounds of TFE gas and stored it in small cylinders
at dry-ice temperatures prior to chlorinating the TFE. When he and his assistant prepared a
cylinder for use, none of the gas came out – yet the cylinder weighed the same. When the cylinder
was cut open, they found a white powder.

Plunkett was curious about the white powder and had the presence of mind to characterize the
material for properties other than its refrigeration potential. He found the material was
heat-resistant and chemically inert, and had very low surface friction so that other materials
would not adhere to it. Although it was thought at the time that the gaseous TFE could not be
polymerized, the exact temperature and storage conditions in Plunkett’s lab enabled PTFE, later
named Teflon, to be formed. This was truly a remarkable discovery. Plunkett’s work resulted in
patents for making Teflon that were assigned to DuPont, and in 1985, Plunkett was inducted into the
National Inventors Hall of Fame for his discovery of Teflon.

Plunkett moved on to other assignments at DuPont, and DuPont’s Organic Chemicals Department
experimented with ways of safely polymerizing TFE to make Teflon. During World War II, about
two-thirds of the TFE, then known as K-416, was made for the Manhattan Project and other military
uses. Teflon was trademarked in 1945. After the war, DuPont was able to concentrate on industrial
uses for Teflon products. Teflon tapes and sheets were sold for electrical insulation, as well as
gaskets and sealers for pumps and valves because of Teflon’s extreme chemical resistance. Teflon
was produced in fiber form in the early 1950s.

DuPont initially produced Teflon filament yarns at its Richmond, Va., rayon plant. PTFE is
insoluble in most solvents and decomposes before melting. The PTFE resin is dispersed in a viscose
rayon spinning dope and extruded into an acid bath, where the dispersion is coagulated and the PTFE
forms filaments. The fiber structure is then heat-treated, and then sintered and fused into a
coherent filament. The viscose carrier material is decomposed. The PTFE fibers are then drawn.

Modifications to the process were used to form multifilament, tow and staple fibers.
Copolymers of TFE with other fluorochemicals such as hexofluoropropylene were developed. These
produced a copolymer that was suitable for melt spinning.


DuPont’s Early Work With Teflon Fibers


By the mid-1970s, DuPont developed an extensive line of Teflon fibrous products including
multifilament yarns from 200 denier up to 39,600 denier. These yarns also could be obtained in
bleached and impregnated forms. Teflon monofilament yarns were available from 4 mils to 60 mils,
and Teflon flock and staple fiber were made in 6.67 and 7.50 denier. The high price of the Teflon
fibers ($27 per pound for a 200-denier/30-filament yarn in 1974) was a limitation to early
widespread use of the fibers and dictated their use only in applications that required some of the
properties described in Table 1. Staple-type yarns of Teflon were made by direct spinning from tow
because of the difficulty of carding the slippery fiber. Multifilament yarns also were processed by
air-jet texturing for filtration fabrics and other applications.


Early Successful Teflon Fiber Applications


Braided packings made of Teflon fibers proved cost-effective for pumps and valves. The hard
packing made with Teflon fibers impregnated with Teflon dispersed resin give excellent service in
high-pressure pump and valve applications. The soft packing material, in addition to the dispersed
resin, incorporates a high-temperature inert lubricant for high-speed pumps.

Bearings of Teflon in fiber form are successfully used in high-load, low-speed areas and
require no lubrication. The coefficient of friction of Teflon fiber can be as low as 0.01 depending
upon surface speed, load and temperature. Since the static coefficient of friction for the fiber is
only slightly higher than the dynamic value, it does not exhibit stick-slip. Stern & Stern
Industries Inc., New York City, developed a line of fabrics woven of Teflon yarns for bearings that
are used on highway bridges. Other applications for Teflon-bearing fabrics include: agricultural
equipment, where non-lubrication and impact resistance are important; steel rolling mill bearings,
where high load-carrying ability and impact resistance are required; and aircraft and missiles,
where lack of stick-slip resistance under extreme temperature is required.

Filtration is an important application for Teflon fibers and yarns in woven fabrics and in
needlefelts, particularly for filtering products such as titanium dioxide; carbon black, where
temperatures as high as 500°F (260°C) are encountered; and where corrosive products like acids have
to be filtered.

Tapes and narrow fabrics of Teflon fibers have extensive use in the aerospace industry,
where they are used for wrapping and splicing of wire and cables because of Teflon’s favorable
dielectric properties, heat resistance and low flammability.

A relatively new application for Teflon yarns is Blister Guard® socks made from this
material from Friction Free Technologies Inc., New York City. The use of these socks reduces
blisters, hot spots and abrasion, and keeps the skin cooler and drier than conventional socks. Wear
tests by the US Army Rangers, Marines and Navy Seamen of socks containing Teflon showed that
calluses, blisters and hot spots are reduced by 80 percent.

p30_Copy_8


Toray Acquires

DuPont’s Teflon® Fiber Business



In June 2002, Toray Fluorofibers (America) Inc. was formed after the company purchased the
exclusive rights to the Teflon brand of fluorofibers from DuPont. DuPont sold this fiber business
in order to further reduce its dependency on the textile fibers business and to permit the company
to invest in newer businesses.

Toray will produce the Teflon product in Decatur, Ala., at a new plant estimated to cost $30
million. Equipment from DuPont’s Teflon fiber manufacturing operation in Wilmington will be moved
to Decatur.


W.L. Gore And GORE-TEX®


For some years after Teflon’s discovery, DuPont was the primary company working with
fluorocarbon chemistry. From 1945 to 1957, William L. “Bill” Gore worked on PTFE while serving on a
task force at DuPont’s research center. Since PTFE could not be extruded like nylon and other
thermoplastic resins, the only technique for making Teflon tapes and tubing was by “ram” extruding.

In 1957, Gore’s task force was disbanded. Gore continued to work with the PTFE resin in his
home workshop. He and his son Bob, who was then studying chemical engineering at the University of
Delaware, were trying to develop PTFE for computer wiring insulation. They succeeded in making a
PTFE ribbon that could be used for such insulations. Bill Gore tried to interest DuPont in further
developing the product, but at the time, DuPont was not interested in pursuing downstream products
of PTFE.

In 1958, Bill Gore left DuPont after 17 years with the company to pursue making PTFE ribbon
cable, forming W.L. Gore & Associates Inc. After two years of hard work and frustrations, he
received an order for about $100,000 of the ribbon as part of a system that monitored pressure in
water mains. By 1963, Bob Gore had received his Ph.D. in chemical engineering, and the company
occupied a new plant in Newark, Del. By 1969, sales at Gore had reached $6 million, most of which
were to the wire and cable business. Bob Gore experimented with techniques to expand PTFE by
heating and drawing techniques. This work led to making PTFE membranes in wide sheets. A surgeon
used the PTFE membrane in a vascular graft on a pig and found it was successful. It took four years
to develop GORE-TEX® vascular grafts for humans, and they now are used throughout the world for
treating cardiovascular disease. Later improvements were made to the Gore-Tex material for vascular
grafts to improve its rupture tolerance.

By 1973, the company could stretch Gore-Tex wide enough for lamination to textile fabrics.
One of the company’s objectives was to produce a breathable waterproof tent material. In the
beginning of 1976, Gore still generated 90 percent of its sales and profits from its basic wire and
cable business. Only $2 million of its sales came from microfiltration, industrial filter bags,
joint sealants and medical products. This situation was to change in 1976, when, led by a surge in
the medical products division, sales within the whole company took off and started growing at 75
percent per year. During this period, the Gore-Tex fabric division’s products were used in a
commercial tent.

In 1974, the company started working with Bill Nicolai, Early Winters Co., currently a
division of Norm Thompson Outfitters, Portland, Ore., to incorporate a Gore-Tex microporous fabric
laminate into a tent. Nicolai, an experienced mountaineer, christened the resulting tent “Light
Dimension” and it became a successful product. Gore later sold its laminates to other portable tent
makers such as Sierra West, Banana Equipment and Recreational Equipment Inc.

By 1978, Gore was selling its laminates for use in parkas and other outdoor apparel. That
year, a major crisis developed with the Gore-Tex laminates – body oils from perspiration were
clogging the microporous membrane. Gore recalled more than $3.5 million worth of apparel while it
redesigned the microporous membrane to make it more oleophobic.

remedia
Gore’s REMEDIA™ catalytic filter system is designed to destroy dioxin and furan
emissions.


Gore Continues To Grow


Gore is still a privately held company; and now has sales of $1.35 billion, and 6,000
associates in 45 locations around the world. Filtration is an important business for the company. A
microporous Gore-Tex expanded membrane is applied to woven or nonwoven filter media to improve
filter efficiency and to improve filter cake removal in shaker-type baghouses.

Gore recently introduced its AMAZON™ filter bags, which have a hydrolysis treatment to
improve durability. These bags incorporate a Gore-Tex membrane with an aramid needlefelt. They are
designed for pulse-jet baghouses and can perform well in an acidic environment.

Gore’s REMEDIA™ catalytic filter system is designed to destroy dioxin and furan emissions.
The system is designed for use in baghouses for applications such as incinerators,
pyrometallurgical processes and cement kilns.

Gore has been producing Gore-Tex cleanroom garments for about 15 years. They are designed to
meet the requirements of ultra-clean (non-sterile) Class 1 to Class 100 environments. These
garments are flame- and chemical-resistant and have built-in static dissipation properties.

The development of microporous membrane for desalination units and the separation of other
liquids and gases is a future goal of the company.


Donaldson Tetratex®


Tetratec Corp., Ivyland, Pa., was started about 20 years ago and recently was acquired by
Donaldson Co. Inc., Minneapolis, a leading manufacturer of filtration equipment and filter media.
Tetratec manufactured Tetratex®, a microporous semi-permeable membrane film. The film repels water
while allowing air and moisture vapor to freely permeate the membrane. Product applications include
filtration, fire-fighting apparel, medical drapes and gowns, recreational tents, and apparel and
industrial garments.

Donaldson’s Tetratex will be competing in many of the same markets as Gore. This competition
should result in many new and improved products, since both companies invest heavily in their
capable research and development efforts.


Plastomer Technologies


Houston-based Plastomer Technologies produces expanded PTFE (ePTFE) monofilament for
industrial and consumer applications. One of its major products is PLASTOLON™ filtration sewing
thread. This thread has high tenacity, low shrinkage, high chemical resistance and high resistance
to ultraviolet (UV) light and sunlight. In addition to filtration applications, it is useful for
geotextile sewing and bagging for chemical products. Plastolon supplies its ePTFE sewing thread in
nominal deniers of 600, 800, 1,200, 1,800 and 3,600 on various packages.

The Plastolon product range also includes Plastolon Outdoor Fiber.


Fluorocarbon Treatments


The invention of Scotchgard™ represents another serendipitous discovery involving
fluorocarbons. In 1953, Patsy Sherman, a researcher with 3M Corp., St. Paul, Minn., was working on
a project to develop a rubber material that would be resistant to deterioration from jet fuels. An
assistant in her laboratory spilled an experimental compound on her new tennis shoes and was unable
to remove the material with soap, alcohol and other solvents. Sherman and fellow 3M chemist Sam
Smith became fascinated with the properties of the experimental compound and initiated work to
enhance the liquid repellency and the cost of this compound. As a result of this work, Scotchgard
Fabric and Upholstery Protector was launched in 1956.

In mid-2000, 3M discontinued Scotchgard Protector manufactured using C8-type fluorocarbons
because of environmental concerns over the persistence of C8 products. Since then, 3M Scotchgard
products have been reformulated with a different type of fluorocarbon material.


Coating Of Fabrics With Fluorocarbons


In 1973, the first permanent fabric structure was completed at LaVerne College, LaVerne,
Calif. The structure was built using woven glass fabric coated with PTFE resin. The world’s largest
fabric structure, the Haj Terminal, was built in the early 1970s in Jeddah, Saudi Arabia. This
structure covers 105 acres and was built to service  Muslims making their pilgrimages to Mecca(See ”
From
Radomes To Mega Structures
,” October 2002)
. More than 500 million square feet of woven
fiberglass fabric coated with PTFE resin were used for the structure. This building is a tribute to
the outdoor weathering resistance of fluorocarbon polymers.


Fluorocarbon Films For Lamination


DuPont makes Tedlar® films, which are based on polyvinyl fluoride (PVF) in oriented and cast
forms. DuPont supplies its PVF only in film form. PVF resin also can be used for coating fabrics
and other structures, but it must be applied in a solvent system.

The air-supported Paddock Chevrolet Golf Dome in Tonawanda, N.Y., is an example of how
Tedlar film is used in a fabric structure. The fabric is Shelter-Rite® vinyl-coated polyester
fabric manufactured by Seaman Corp., Wooster, Ohio, with a durable Tedlar PVF soil-resistant outer
surface. The structure is 270 feet wide, 350 feet long and 80 feet high, and does not have any
supporting pillars. When the golf driving range and the miniature golf course are not in use, the
space is used for indoor soccer, baseball or softball.


Atofina’s Products


Atofina, France, produces the polyvinylidene fluoride (PVDF)  film KYNAR®. PVDF resins
have a wide processing window and can be used in a range of processes including solvent casting,
blown film extrusion, cast film extrusion and biorientation.


Monofilament Fluorocarbons


PVDF has the capability of being melt-spun into fibers. PVDF monofilaments are produced for
sewing thread, filtration and fishing lines. A major producer of PVDF monofilament products is
Shakespeare Co., Columbia, S.C. Shakespeare also manufactures monofilament yarns from most
melt-spinnable polymers including nylon, polyolefins, polyetheretherketone (PEEK™), Ryton™ and
other specialty polymers.

The properties of PVDF monofilament yarns that make them useful in textile applications are:

•    outstanding resistance to weathering and UV light;

•    outstanding chemical resistance;

•    high continuous use temperature (up to 150°C);

•    inherent flame resistance;

•    low coefficient of friction;

•    lowest moisture regain; and

•    excellent soil resistance.

Shakespeare supplies its ISOray™ UV-resistant PVDF sewing thread in a range of diameters
from 0.006 inches to 0.012 inches (295-1,180 denier) for applications such as awnings, tents,
sails, flags and banners, tarpaulins, boat covers and filtration fabrics. These yarns can last for
up to 10 years in outdoor applications, according to the company.

Shakespeare produces a range of standard and custom PVDF monofilament yarns for fishing
lines. The refractive index of PVDF monofilaments makes them highly transparent and invisible to
fish.


Diverse, Specialized Products


Since the discovery of PTFE, the uses of fluorocarbons have proliferated in the forms of
fibers, films, coatings, surfactants and finishing agents. Although most fluorocarbons are
relatively high in cost per pound, they are very cost-effective when used in high-performance
applications. Without fluorocarbons, our present high-technology society, which uses fluorocarbons
in products from vascular grafts to aircraft and vehicle bearings, could not function.

September 2004

Fiber’s Shifting Focus


F
abric libraries, trend forecasts and product development are some of the ways fiber
companies assist customers in designing and selling their wares. Midland, Mich.-based Dow Fiber
Solutions’ DOW XLA™ combines fashion trends and techno service in a book of fabric swatches. All of
the fabrics have been woven by leading European mills and have been specially finished or treated
to show how finishing does not alter the performance of fabrics containing XLA.

There are cotton shirtings with antibacterial and ultraviolet-resistant finishes;
enzyme-washed denims of Tencel®/cotton; laser-perforated twills; pleated wools; membrane coatings;
bonded plain weaves; laminated treatments; crushed surfaces; and flocked, embossed and puckered
fabrics. Most of the fabrics shown in the swatch book contain 2- or 3-percent XLA; a crushed
shirting has 7 percent. Accompanying photos and text point up the comfort, performance and fashion
attributes of these fabrics.

At the moment, Lenzing AG, Austria, plans to continue Tencel Ltd.’s fabric library in New
York City. It will feature Lyocell®-content fabrics displayed by fabric type and organized
separately by resource. It is expected that fabrics containing Modal® and Micro Modal® will be
added. The fabric library offers a wide selection of denim from international sources, as well as
sheers and novelty knits.

Germany-based Celanese AG’s Fabric Library is changed seasonally as new fabrics arrive from
global sources. All contain Celanese acetate. In addition to fashion fabrics, there is a section
for linings. According to Ellen Sweeney, manager, global public affairs/advertising, approximately
600 designers and piece-goods buyers review the Celanese Fabric Library each season. Currently, the
most-asked-for fabrics are faille, bengaline, satin and jacquards woven in blends of
acetate/cotton, as well as acetate/spandex and acetate/nylon novelty knits.

Celanese gives color and trend presentations on a daily basis. Fall/Winter 2005-06 is
currently underway. In addition to New York City, the show goes on the road to Los Angeles, Mexico,
Korea and China. James Siewert, manager, creative services, points out rich, deep shades of
magenta, plum and orchid in his presentation. He shows these with dark neutrals of steel gray-,
camel- and bronze-cast colors. Jewel-tone brights are used as accents. Elegant combinations of
shaded pastels with deep brown or winter navy are another look. Bright and primary colors turn up
in flecked tweeds and dimensional weaves.

Fabrics Siewert shows include crepes and crepons for a variety of silhouettes. Dimensional
weaves with slubs and nubs are woven with irregular yarn mixes. Matte satin and fluid silky fabrics
are topweights that go into tailored, dressy and casual apparel. Knit surfaces can be matte or
lustered. Fluid and weightless fabrics are stressed.

At INVISTA™ Apparel, Wilmington, Del., Iris LeBron, fashion director, intimate apparel,
swimwear and activewear, gives color, fabric and garment trend presentations to the intimate
apparel industry. For apparel producers, globally sourced market fabrics containing Lycra® spandex,
Tactel® and Supplex® nylons are shown. Soft neutrals, pink and lilac shades, floral prints on sheer
fabrics, checks, geometric patterns and over-scaled paisleys are some of the suggestions in a group
that has a lively feeling. Seamless mesh, honeycomb sheers and patterned ribs are some of the
fabrics shown. Pinks, burgundies and corals are accented by navy, sky blue and olive in another
range. Lace, satin and delicate sheers are some of the highlighted fabrics. There are gutsy satins,
power-nets, laces, embroideries and appliqués in a third range. Colors here are nostalgic shades of
antique gold, copper and bronze mixed with raspberry, muted teal and celery.


INVISTA’s Yarn And Knit Forecasts

Flat knit and yarn innovations  presented recently at Invista’s New York City office
spanned Fall/Winter 2005-06 and Spring/Summer 2006.  “The Invista knitwear innovation
portfolio includes a wide range of products that offer both fashion and function,” said Jean
Hegedus, global knitwear marketing manager. The collections were prepared by Sheila-Mary
Carruthers, global knitwear consultant, in conjunction with the technical team at the England-based
Invista Fabric Development Centre.

More than 100 new flat knit concepts, made on commercial machinery using commercial yarns,
were developed for knitters, brands and retailers. Among the fabrics shown are double-faced cloths
that offer a different aesthetic or performance quality. One fabric is knitted with
Teflon®-treated wool yarns from Schoeller GmbH & Co. KG, Austria, on one side for protection.
It reverses to a brushed surface knitted of wool/mohair/Lycra from AA Global,
Taiwan. Carruthers demonstrated the water-repellent properties of the fabric.

Other fabrics shown include Fair Isle knits that have loft without weight, fleeces, tucked
textures, stripes and lacy knits. Most of the fabrics are easy-care and high-performance, and
have a new fashion look. There are fabrics knitted with composite yarns and blends of natural
and man-made fibers. Most contain Lycra.

Yarn innovations for Spring/Summer 2006 are aimed at all manufacturing end-uses – wovens,
circular knits and flat knits. Samples and technical specifications are available. Many
contain Cordura® in a refined form. “It’s not just for backpacks,” said Carruthers, who showed a
marled yarn also containing Lycra. Other yarns include linen/Lycra; space-dyed cashmere/Lycra;
bouclés; and slubs, nubs and other novelties in a variety of fibers including Tactel, Supplex,
Cordura and Lycra; and sometimes blended with wool, silk, bamboo or glittery Angelina.

finessewoman
For Fall/Winter 2005-06, Nilit Ltd. presented several trends, including laces and
embroideries for fabrics targeted to women, for its line of Sensil™ nylon fibers.


Nilit’s Trend Forecasts

Israel-based Nilit Ltd. focuses its  trend forecast for the family of Sensil™ nylon
fibers on intimate apparel, activewear and legwear for men and women. Ilana Joselowitz, design
consultant, presented colors, fabrics and silhouettes for Fall/Winter 2005-06. Seamless garments
highlighted her presentation. “Seamless has unlimited potential. The comfort, fit and variety of
effects that can be achieved are not possible with cut-and-sew,” she said.

Joselowitz divided her presentation into five groups. A traditional group with a vintage
look features cozy, soft homewear with discreet surfaces. Bodywear for men, knitted in Sensil
Arafelle plated with covered spandex, has a mélange effect and cottony touch. Matte/shine
contrasts, embroideries, eyelets, laces and ribs are some of the ideas for fabrics targeted to
women. Colors are soft shades of peach, aqua, cream and pearl.

A second group is inspired by mythology. Velours, satins, burn-outs, jacquards and rich
colors are among the highlights. Sensuous, romantic bodywear combines satin, smocking and mesh in a
single seamless garment. There are chain mail effects, ruffled embellishments and patina surfaces.

Nature is the spirit of a third story, with shades of green, brown, berry and violet.
Puckered textures, leaf and bark patterns are shown with engineered panels knitted in seamless
corsetry.

A bright, young group with a 1950s retro influence features multi-colored layered garments
that are dyed in one process using Sensil Colorwise and Sensil Pastelle. Bright stripes, bold dots
and tonal effects are shown in camisoles, panties and socks. High-performance activewear is
designed for comfort and fit. Multifunctional seamless garments are knitted in techno yarns that
stretch, breathe, transport moisture and control bacteria.


Natural Fibers

At Cotton Incorporated, Cary, N.C., color for Fall/Winter 2005-06 is grouped into six
trends, with six shades in each. There are five directions for fabric weaves, patterns and
textures. Forward fashion is purchased from trendy boutiques from around the world. Visitors to the
company’s presentations are allowed to cut swatches from the garments. In some instances,
construction details are available. All of the colors are identified with Pantone numbers.

A group of bright, clear colors “appears to be glowing with sunlight,” said Kathryn
Novakovic, director, fashion marketing. Orange, gem-like blues, chartreuse, polished bronze and
mahogany are some of the shades shown. Grayed, weathered tones are in a group called Storm Watch.
Smoky browns, tans, grays and blues are shown. Novakovic suggests using these for men’s
bottomweights and weatherproofed fabrics. Deep red, purple, gray, and a brown shade called Luggage
are lightened and brightened by aqua and a tinted peach shade in another group.

For athleticwear, Cotton Incorporated shows bright yellow, green and turquoise with deep
olive-brown, tan and cream. These colors are also suggested to accent cotton sweaters and winter
outerwear. Reds, pinks and lavenders range from soft to fiery. They are shown with a pale mossy
green and root brown. Traditional colors in the final group have a high-energy feeling. Velvet,
flannel and tartans are some of the fabric selections.

Fabrics shown at Cotton Incorporated are knitted or woven of 100-percent cotton or blends
with wool, spandex, acrylics, other man-mades, soy or bamboo. “Look for dimensional patterning in
quilting and matelassés, surprising combinations such as florals and plaids,” Novakovic said. There
are techno fabrics that repel insects, and a lot of decorative details. There also are double-sided
knits that reverse from terry to stripes; fleeces; dobbies; crinkled and puckered effects;
jacquards; basket weaves; striped shirtings; chenilles; and, of course, canvas, twills, corduroy
and denim.

Some of the novelty denim fabrics at Cotton Incorporated are chevron-patterned; marbled;
flocked; printed; rainbow-striped; splattered; woven with spandex; coated; and bleached,
stone-washed or garment-washed.

Forward fashion direction at Masters of Linen, Paris, is researched and presented by Ornella
Bignami of Elementi Moda, Milan. In North America, information is available at Masters of Linen,
New York City. Bignami sets two moods for Fall/Winter 2005-06. One is urban and luxurious, with a
subtle convergence of masculine and feminine looks. Colors are neutral, light or barely darkened in
palettes of cloudy blues, greenish grays, golden beiges and blushed browns. Casual fabrics are in
blends of linen with wool or alpaca. There are blurred, grainy, slightly rough surfaces;
tone-on-tone tweeds; and twisted, imperfect knits. For a more sophisticated look, Bignami suggests
compact textures; double-sided fabrics; lightweight weaves such as gauze or muslin; brushed
surfaces; fine-gauge knits; and dainty textured designs knitted or woven in linen blended with
wool, silk or microfibers.


Bignami’s second theme for linen is carefree and young. Colors are bright and softened. She
shows multicolored micro- and macro-tweeds, blistered jacquards, shaggy mohair/linen blends,
crackled surfaces, lace and embroidery, aged velvet, fine-gauge loose knits and iridescent effects.
All of the fabrics are knitted or woven in blends of linen with wool, mohair, silk microfibers or
Lycra.

touchofwhimsy
Cotton Incorporated’s trend directions for the home for 2006 include brighter colors,
prints and patterns.


For The Home

Dana Poor, trend forecaster for the home, Cotton Incorporated, recently presented six color
palettes and four fabric directions for the home for 2006.

“As we move into Home 2006, the colors will continue to be bolder and more saturated,” Poor
said. “There is a movement from solid vivid colors towards brighter and more vivid prints and
patterns.” All of the colors are matched to Pantone shades.

In a group of colors called Wine Country, there are lush purples, grape leaf and vine
greens, chardonnay gold and a shade called Flagstone. Cool blues, lavenders, sandy shades, peach,
mud and pure white are in a range called Simply Stated. Spice of Life colors are rich and lively,
with Chili Pepper and Sangria reds, Nutmeg brown, a teal called Incense, Vanilla and Smokehouse
gray.

Laid-back shades in a group called Luxe are described as “exotic without being pretentious.”
There are silvery blues and greens, tangerine, carrot, and an earthy brown called Arabica. The
Overexposed range features intense brights that are “flamboyant and sensual.” Passion pink,
Limelight, orange, and turquoise are some of the colors offered. Earth and water shades in the
Reflections range are soft, dusty, warm browns. Rosewater pink and silvery Shadow, with deep navy
and a vivid turquoise called Poolside are also offered.

Fabrics in a group called Swept Away take their inspiration from apparel such as cable knits
and white-on-white burn-outs. Waffle weaves, terrycloth and dobbies are also in this group.
Handcrafted looks, slubbed textures, botanical prints, chenilles and ikats are in the Rudimentary
Elements range. Top of the Line includes damasks, jacquards, embossing and shine. There are
circular patterns, squiggles, flocking and bold color combinations in the last group.



September 2004

A Polyester Saga Geography And All


I
n past articles,

Textile World
has regularly documented the shrinking man-made textile fiber industry in the
industrialized world and the concomitant explosive rise of production in the developing economies
of Asia. The logic is brilliant in its simplicity: Asian economies built large export businesses
and programs by vertically integrating fiber, fabric and garment manufacturing, thereby ensuring
that the entire value added in the supply chain remains in the country of origin. Driven by
apparent comparative advantage in wages and enticed by the siren call of reduced unemployment and
acquisition of hard currencies to fuel further expansion into a full range of consumer goods, Asian
countries crafted and implemented well-designed programs to capture global garment manufacturing.

Specifically, Asian countries and companies focused on manufacturing polyester, which
virtually has become the fiber of choice, albeit often combined with cotton, in garment production.
Examination of the movement of the critical mass of fiber manufacturing from the industrialized
West to the developing East is a study in comparative economics and social realities.

It is increasingly clear in what region fibers will be made, but the question of the leading
country or countries in the region is less obvious. Preliminary data exhibiting the difficulties in
accurately projecting fiber demand and production may shed some light on the situation.

Production data are used for this comparison. The textile and apparel complex long ago
became global, and demand is unfettered by political borders. The Asian export model retains the
total value added and is designed to compete worldwide.

asiamap


The World Of Fibers


Table 1 details the recent history of the major participants in the man-made fiber industry
and projects volumes into 2010.

According to the United Nations, world population will reach 6.812 billion people by 2010.
World per capita production of man-made fibers reached 12.35 pounds per person in 2000,
representing a decade-long annualized increase of 2.99 percent, most of which came in the 1995-2000
period, when production surged by a compounded 4.86 percent per year, driven by enormous increases
in Southeast Asia in an export response to a regional recession and economic crisis. Repetition of
such rates is unlikely, so a lower rate of growth is forecast through the first decade of the new
century. Given the energy drag created by unrest in the Middle East and possible banking problems
in several Asian nations, total production rate increases are forecast at about the level of the
1980s to early 1990s experience, yielding a man-fiber production of 98.275 billion pounds in the
year 2010, and, adding in cellulosics, total man-made fiber production of 102.175 billion pounds.


Product Forecasts


This is an article about polyester, but one fiber does not move in an airless vacuum.
Substitution still is a valid competitive strategy that, unfortunately for some fibers, often is
designed away in a race to penetrate a new market area. The result is what is seen today. By and
large, fibers are used for their utility in specific markets. Acrylic is bulky and
chemical-resistant. It is not as good in permanent-press. Polyester is difficult and expensive to
dye, but has attributes that make it ideal for blending with cotton and in resin applications.
Nylon covers floors and women’s legs. It can be treated for dirt and dust resistance and spun into
fine, sheer filaments to enhance the female leg.

Looking forward to 2010, it is projected that polyester and olefins will continue to
dominate fiber growth. Other fibers will struggle to maintain position, and several will formally
enter the decline phase of the product life cycle. Their role in helping polyester dominate the
man-made fiber world deserves comment.

p71_Copy


Acrylic


Recent world production of acrylic fibers has stagnated at the 6 billion-pound level, most
of which (58 percent) is produced in China and Europe. Acrylic gradually is losing the price battle
with polyester and increasingly is relegated to bulk and wool-substitute end-uses. Acrylic’s
excellent chemical resistance makes it natural for a multitude of markets, and the fiber will
continue to shine in water and gas filtration uses in response to clean water and air initiatives.
Growth in traditional apparel and home fashion uses is limited at best. A slightly decreasing
production pattern is predicted by 2010, and acrylic is probably heading for serious decreases in
production in the second decade.


Cellulosics


Viscose-based cellulosic fibers lead the race to oblivion. Lyocell offers an environmentally
attractive substitute to traditional viscose and, to the extent that producers want rayon, lyocell
will expand and satisfy this need. The costs and risks of viscose are too much for an
environmentally aware economy to bear. World production of cellulosics is concentrated in Europe
and China. Europe is closing viscose operations, and China likely will follow suit under
environmental pressure from World Trade Organization members. Alternatively, there may be
increasing emphasis on cotton or, most likely, higher-level blends of polyester with cotton,
thereby stretching the available cotton supply and absorbing the expected deluge of polyester, both
filament and spun.


Nylon


Nylon, the granddaddy of man-made fibers, seems to be losing share to polyester, overwhelmed
by sheer volume if not performance. In carpets, staple nylon gradually is being replaced by
filament; tires increasingly use polyester over nylon; and many woven industrial and apparel
fabrics seem to favor polyester. Nylon’s dyeability is an advantage, but not sufficiently so to
overcome the supply and variants available in polyester. Nylon is on a cusp.

The recent purchase of INVISTA™ Inc. by Koch Industries Inc., Wichita, Kan., from DuPont,
Wilmington, Del., leaves Invista yet to establish a market identity beyond apparently continuing
the DuPont technological advantage mantra. Koch has proven a quality steward of the polyester
assets acquired from Hoechst AG, Frankfurt, and is expected to manage these new nylon assets with
similar conviction. Time, likely two to three years, will tell.

p72_Copy_2


Olefins


In 2002, Europe and the Western Hemisphere produced approximately two-thirds of world olefin
supplies (not including cigarette tow), with China adding an additional 17 percent. Olefin is a
fiber of home and industrial utility, somewhat out of the view of economies intent on increasing
employment through garment manufacturing. Generally, polypropylene in carpets and disposable diaper
cover stock appeals to industrialized economies that have moved beyond the subsistence level of
Abraham Maslow’s Hierarchy of Needs. As Asian economies improve from the problem days of the late
1990s, it is expected they will increasingly embrace polypropylene-containing textile materials,
possibly starting with geotextiles to create additional infrastructure and arable land for
foodstuffs.


Polyester


Polyester is king. As recently as 1990, world polyester production (filament and staple)
totaled 20 billion pounds. In 2002, production had more than doubled to more than 46 billion
pounds. The world man-made fiber industry shipped more polyester in 2002 than it had shipped in
total product 12 years earlier. And this increase forever changed the world map of fiber
production. In 1990, the West and Europe accounted for 43 percent of total world polyester
production. By 2002, the balance had shifted dramatically. First, South Korea made a run at first
place in the 1990s, but lately it appears to have reduced its ambitions. Taiwan maintains a posture
similar to that of Korea. The big player obviously is China. Polyester production in China grew
from a 12-percent share of a 19 billion-pound market in 1990 to 37 percent of a 46 billion-pound
market in 2002. This rate (20+ percent compounded annually from 1995 through 2002) cannot be
sustained, and it is projected that China will produce approximately 36 billion pounds of polyester
in 2010, a 10-percent annually compounded rate of increase from 2002. This effectively will force
the rest of the world to limit polyester production to rates similar to those of 2002.

India has adopted the Japanese Ministry of International Trade and Industry (MITI) model of
industry and government cooperation in fibers, textiles and apparel. According to reports, the
program is just reaching the commercial phase. It appears there will be a competition between India
and China in polyester fiber manufacturing. Countries with smaller commitments to polyester will be
squeezed as these two goliaths meet each other in the marketplace of commodity staple polyester.

This brush with commodity appears to be the underlying strategy behind India-based Reliance
Industries Ltd.’s purchase of Trevira GmbH & Co. KG, Germany.
(See ”
Textile
World News
,”
TW, August 2004
). In announcing this purchase, Reliance, a (if not the)
player in the Indian textile and apparel complex, adds a world-recognized brand to its stable of
polyester products. Reliance also is constructing several new facilities to raise its capacity to
almost 4 billion pounds, which by itself will increase India’s world share by more than 7 percent.

With a total world market approaching 65 billion pounds by 2010, competition for market
share will be intense, with oil prices pushing up the bottom and a world fiber market squeezing
down the top.


Geography


It should come as no surprise to

TW
readers that the production geography of man-made fibers has changed dramatically in the past
two decades. Long the preserve of Europe and the United States, fibers now are produced worldwide,
with recent emphasis on a few Asian economies, particularly China, Taiwan, South Korea and, most
recently, India. In 1990, Europe and the United States controlled 58 percent of man-made fiber
production. By 2002, that dominance had dwindled to 33 percent, and an even lower position of 23
percent is projected in 2010. In the late 1990s, Japan reduced its production of man-made fibers.
Korea grew through the 1990s but recently has scaled back.

Most growth comes from polyester expansions in India and China. In 1990, China represented
barely 8 percent of total man-made production; by 2002 it produced almost 30 percent, almost a tie
with the combined total of the United States and Europe. Simultaneously, India began a program
aimed at achieving a dominant position in fibers, fabrics and garments. India’s government
established commerce councils similar to Japan’s MITI aimed at strengthening and assisting
investment in textile and apparel operations. From a virtually nonexistent position in the 1990s,
India currently produces 5+ percent of the world’s supply of man-made fibers, with programs in
place to expand this further. This is small compared to the position of China, but it starts with
only small positions in acrylics and nylon, and a probable diminishing position in cellulosics; and
it represents radical growth focused almost entirely on polyester.

In 1990, world polyester production totaled 19,131 million pounds; the four regions of
Europe, the Western Hemisphere, China and India produced 59 percent of the total
(See Table 2). Over time, polyester production in Europe and the West has slipped, while
China and India have engaged in a pitched expansion battle. In 2002, China manufactured 37 percent
of all polyester fibers produced in the world and that is projected to rise to more than 55 percent
by 2010.

The world of polyester production begins to resemble a monopoly, led by China. Give India
credit. It is proceeding with its expansion plans, almost doubling capacity and production in the
next decade. Unfortunately, the China colossus is so large that, while India is achieving critical
mass for its fabric and garment ambitions, it is hard-pressed to reach a 10-percent share of world
production. It is likely, however, that India will earn a strong second place.


Changing Fiber Landscape


The speed with which Asia has dominated fiber production is astounding. The commitment is
complete, and the world man-made fiber industry will never be the same – and that’s not necessarily
a bad thing. It is obvious that production asset investments of the recent decade are world-class
in efficiency and quality – with the world consumer receiving the benefits. The industrialized
world must move on to a higher-return economy and let the developing world be satisfied by lower
returns on investment, either through lower labor or local funds costs; or government-subsidized
manufacturing aimed at employment, and/or accumulation of strong currencies to be used for
continued economic development. Either way, the new nexus of the man-made fiber business is Asia.

September 2004

Mills Busy, Long-Term Outlook Hazy


D
emand continues to be strong for ring-spun (RS) and open-end (OE) yarns. For RS, combed
cotton and fine counts particularly are running strong, with combed looking good four or five weeks
out. Fine-count yarns (Ne 30 and finer) are especially tight. An OE spinner described his business
as “ real good,” but declined to speak about prices or margins. The market for air-jet yarns
appears to be cooling off. At least one industry observer said that the air-jet market is currently
running cold.

A ring spinner reported operating through the traditional 4th of July holiday week and seeing
a pickup in business in the last few weeks. Another mill manager characterized his business as
good, but said, “We really cannot see that far beyond October.”

On the other hand, a specialty ring spinner reported a slowdown in the last couple of weeks,
following a very good May and a slow June. “I don’t know what retail is doing,” he said. “Retail
seems to have slowed down. I’m wondering what September is going to be like.”

Two of the spinners interviewed reported strong export business. One ships yarn to Israel and
Mexico, and sometimes to Portugal and Hong Kong. He said business with Mexico has slowed down
recently, after setting a brisk pace for four or five months. Another spinner mentioned pretty good
program business with South America. Both expressed hopes for a Central American Free Trade
Agreement friendly to the US industry.

Spinners once again described the cotton market as volatile and are hoping prices will
stabilize. At the time of this writing, the cotton market has just had an upward bounce, which may
or may not signal a trend.

On the man-made side, spinners have seen three polyester price hikes this year. They
sympathize with fiber producers’ need to improve profitability and acknowledge rising oil prices,
but, as one asked: “How in the world are we supposed to handle that? Go to Wal-Mart with an
increase?”

One spinner said the change in cotton consumption at US mills in recent years is, in his
opinion, the most telling indicator of how the textile industry has changed. Cotton consumption by
US textile mills has fallen by nearly half, from 11.4 million bales in 1997-98 to roughly 6.3
million bales during the just-completed 2003-04 marketing year. The forecast for 2004-05 is 5.9
million bales. As another spinner put it: “I continue to lose customers. I continue to find new
customers, but nobody orders in the volume that they used to. That concerns me more than anything.”

One spinner was more upbeat about the post-2005 business environment. “We are convinced that
there will be a certain amount of US business available,” he said. “We do a fair amount of
Caribbean Basin Initiative business, and there is going to be a certain amount of replenishment
business. Retailers don’t want to put all their eggs in one basket. They are one dock strike away
from empty retail shelves.”


Near-Record Cotton Crop Predicted

In its August crop report, the US Department of Agriculture (USDA) forecast the 2004-05 US crop
at 20.2 million bales, up 11 percent from last year’s 18.3 million bales. The yield is expected to
average 727 pounds per harvested acre, down 3 pounds from 2003 and 60 pounds above the five-year
average. Upland cotton production is forecast at 19.5 million bales — 9 percent above 2003.
Producers expect to harvest 13.3 million acres total — 11 percent above last year. Upland cotton
harvested area, at 13.1 million acres, is 1.24 million acres more than a year ago.

In its final report for the 2003-04 marketing year, the USDA reported exports of 13.8 million
bales of cotton, up 1.9 million bales, or 17 percent, from the 2002-03 total.

A dramatic increase in exports to China — up 3 million bales to almost 4.9 million bales —
more than offset declines in other markets. These exports accounted for more than one-third of
total reported exports. Exports to Mexico, traditionally the largest US market, declined 17.5
percent, as China replaced Mexico as the top US market. Exports to Mexico in 2003-04 — more than
1.8 million bales — suffered due to a continued decline in Mexican mill use, higher domestic
production and large carry-in stocks.


September 2004

Foss Receives Man-Made Antibacterial Fiber Patent

Foss Manufacturing Co. Inc., Hampton, N.H., recently received a patent for its Fosshield fiber. The
fiber contains a silver-based antimicrobial ingredient to prevent the growth of more than 650
strains of bacteria, yeast, fungi and mold. The silver component is incorporated throughout a
bicomponent fiber structure and binder fiber to ensure the continual slow release of silver and to
prevent the silver from washing out of a fabric during laundering.

Foss has patents pending for a variety of applications for its Fosshield fiber.

Foss patent also covers antimicrobial fiber additives such as copper, tin and zinc. Other
application-related patents are pending for Fosshield, including such applications as mattress
pads, bed linens, pillows and hospital scrubs.

“Our research and development team has done a remarkable job, and we look forward to nearly
limitless applications for Fosshield,” said Stephen Foss, chairman and CEO.

September 2004

Textile Manufacturers Seek New Import Controls

A coalition of US textile manufacturers is planning to petition the government to impose quotas on
Chinese textile and clothing imports, and importers aren’t at all happy about it. Trade association
representatives are preparing petitions that for the first time will ask the government to set
quotas for scores of product categories based on the threat of market disruption rather than actual
market disruption, which has been the practice in the past.

Cass Johnson, president, National Council of Textile Organizations, said the action is based
on new trade data that show China now controls 72 percent of the US market for 29 apparel products
that were released from quota controls in 2002. “History has proven that China can capture as much
as 30 to 40 percent market share in a single year,” Johnson said. “We cannot and will not allow
China to do the same thing in the categories still under quota.” He said it is clear that the World
Trade Organizations safeguard mechanism permits the filing of threat-based safeguard petitions. The
petitions are expected to include men’s and boy’s cotton trousers, women’s and girls’ trousers,
men’s and women’s shirts, women’s blouses and dresses, and home furnishings such as towels and
sheets. All of these products are scheduled to be removed from quota control by Jan. 1, 2005.

The National Retail Federation (NRF) reacted sharply to the announcement that petitions would
be filed, charging they are a scheme to recreate the old system of imposing quotas against imports
based on backroom political deals. NRF’s vice president and international trade counsel, Erik
Autor, said: “The US government so far has limited its decisions in textile safeguard cases to
those involving actual market disruption. The textile industry is asking the government to go
beyond that standard and take protectionist action against alleged threatened disruption that might
or might not occur in the future.”

The safeguard mechanism is a fairly drawn out process that could take months before any final
decision is reached by the inter-agency Committee for the Implementation of Textile Agreements
(CITA). CITA has 15 days to accept or reject petitions, and if they are accepted, there is a 30-day
period for interested parties to comment, followed by 60 days for CITA to evaluate the comments. If
market disruption or a threat is determined, the US government would enter into consultations with
China, and if agreement cannot be reached unilateral quotas would be imposed.



September 2004

Galey & Lord Files Chapter 11 To Facilitate Acquisition

In order to facilitate its planned acquisition by New York City-based investment firm Patriarch
Partners LLC, Atlanta-based apparel fabric manufacturer Galey & Lord Inc. has filed for Chapter
11 bankruptcy protection.

Galey & Lord had emerged from previous Chapter 11 protection in March 2004
(See
TW
News
, March 2004)
. In late July, Patriarch, already a stakeholder in the company, made an
acquisition offer that subsequently failed to receive the unanimous approval of Galey & Lord’s
term lenders. The new filing will allow the acquisition to proceed, subject to Bankruptcy Court
approval and other acquisition offers.

Patriarch’s agreement is worth $188 million that would be used to pay, replace or assume
outstanding debt and letters of credit; as well as employee pay and benefit, tax, trade and utility
obligations.

Galey & Lord also has secured an $80 million financing agreement with GE Capital to
provide working capital for its normal business operations.

“[W]e are confident that this course will allow us to continue on a positive track and give
us the means of achieving our long-term goals,” said John J. Heldrich, president and CEO, Galey
& Lord. “As this process unfolds, we will continue to work to preserve jobs, protect value and
provide the highest level of service to our customers,” he said. “We expect business to continue as
usual, with little, if any, impact on our employees, partners or business operations. Patriarch
believes in these same responsible business practices.

September 2004

Unifi To Acquire INVISTA Plant, Reorganizes European Operations

Unifi Inc., Greensboro, N.C., has agreed to acquire the Kinston, N.C.-based polyester filament
manufacturing assets of INVISTA Inc., Wichita, Kan., for a sum of approximately $21 million,
subject to a final inventory evaluation. The acquisition of other Invista polyester assets also is
under consideration by Unifi.

The agreement also includes the termination of a manufacturing alliance between the two
companies that was formed in June 2000, and all related agreements.

The acquisition, expected to be completed during this quarter, will integrate polymer
spinning into Unifi’s operations. The Kinston facility employs approximately 775 people and
currently generates annual sales of approximately $300 million, including sales to Unifi totaling
$200 million. “This transaction enables Unifi to better serve the US market, while at the same time
strengthening the company on a long-term basis,” said Brian Parke, chairman and CEO, Unifi. “We are
pleased to have come to an agreement with our alliance partners in this difficult market, as we
will be in a better position to compete with imports from abroad as a result.”

“Our first priority will be to streamline the product mix and production lines between
Kinston and our existing domestic polyester operations to optimize capacity to fit the market,”
said Bill Lowe, COO and CFO, Unifi. He said the company expects full integration will take nine
months to a year and noted that Kinston is currently underperforming.

According to Gerold Linzbach, president, Invista Textile Fibers, Charlotte, which currently
operates the Kinston plant, the facility has been struggling to stay competitive and would have
closed if Unifi had not agreed to purchase it. “This transaction is a more positive outcome for our
employees, the community of Kinston and our customers,” he said.

In other Unifi news, the company plans to reorganize its European operations as of November
2004 to focus on sales, service and distribution of its textured yarn. Unifi will close its
Ireland-based Unifi Textured Yarns Europe manufacturing operations at the end of October, and
thereafter will sell yarns produced in the United States and through Unifi Asia to its European
customers. The company cited continuing unprofitability at the Ireland plant, with little hope of
reversing that trend. The closure affects approximately 300 employees. According to Lowe, the
European reorganization will have no significant impact on the company’s US operations.

September 2004

Weyerhaeuser Introduces Kraft Pulp Fiber For Lyocell

Weyerhaeuser Co., Federal Way, Wash., has developed Peach, a modified kraft pulp fiber that can be
used to generate lyocell fibers for textile and nonwovens applications. With its uniformly stable
low intrinsic viscosity, Peach is excellent cellulose feedstock for lyocell fiber manufacturing,
according to the company. “A modified kraft pulp has a higher yield, due to the higher level of
hemicellulose,” said Marian Herz, product line market director, Weyerhaeuser’s pulp business. “The
higher yield can lead to lower fiber supply costs for lyocell manufacturers, when compared to the
cost of today’s dissolving pulps that are used for lyocell manufacturing.”

September 2004

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