Bayer Spinoff To Be Named Lanxess

Germany-based Bayer AG has chosen Lanxess as the permanent name for NewCo, a recently formed
company comprised of certain parts of Bayer Chemicals and Bayer Material Science
(See
Textile
World News,
TW, December 2003)
.

“We believe that the name is goal-oriented and forward-looking,” said Axel C. Heitmann,
Ph.D., CEO designate of Lanxess. “This name is a combination of the French word lancer, meaning to
set in motion, and the English word success. It conveys our credo: We are aiming for success, as
quickly as possible.”

Named to Lanxess’s Management Board are: Heitmann; Ulrich Koemm, Ph.D.; Matthias Zachert;
Bruce Olson; and Martin Wienkenhover, Ph.D. The company’s formation is largely complete. Bayer
expects Lanxess to be virtually independent by July 1, and expects stock market placement by early
2005.

April 2004

China Safeguard Restraints Remain In Effect

The first action taken by the US government to restrain the growth of Chinese imports will likely
remain in effect for the remainder of this year, as the 90-day period for bi-lateral consultations
on the issue has expired. The US has placed a 7.5-percent growth rate cap on imports of knit
fabric, dressing gowns and brassieres under the so-called safeguard provisions in the US-China
bilateral textile agreement, which permits the imposition of quotas where it can be demonstrated
that there is market disruption. After quotas were removed from the products in question in 2001,
imports surged, and the American Manufacturing Trade Action Coalition (AMTAC) and others filed a
petition with the US government seeking relief. The interagency Committee for the Implementation of
Textile Agreements ruled in favor of the textile industry last Nov. 18, and the time clock was
started on a 90-day consultation period, but there was no agreement from the Chinese.

AMTAC Washington Coordinator Augie Tantillo said that while his organization was pleased with
the action, it would like to see a comprehensive agreement that would limit the growth of all
sensitive textile and apparel exports to levels that would not disrupt the US market in the future.
Since that is not likely to happen, the US industry can be expected to chip away at the problem by
filing additional safeguard petitions when it believes it can be demonstrated that additional
products are disrupting or threatening to disrupt US markets. Retailers and other importers of
textiles and apparel were strongly opposed to the safeguard petitions, as they said they were based
on politics rather than documented evidence of disruption.

April 2004

Clariant Consolidates Production In India

Switzerland-based Clariant International Ltd. has announced it will move a significant part of
production at its Colour-Chem Ltd. subsidiary located in Thane, India, to another Clariant
production site in Roha, India. The relocation will result in the loss of 500 jobs at Colour-Chem,
and the creation of 60 jobs at the Roha facility. According to the company, the move is being made
in an effort to strengthen Clariants competitiveness, reach expansion goals and consolidate
production at one site.

April 2004

Pepperl+Fuchs ML3 Sensors Suitable For Tight Spaces

Pepperl+Fuchs Inc., Twinsburg, Ohio, has unveiled its ML3 series of thru-beam sub-miniature
photoelectric sensors, which have response times under 1 millisecond and housings measuring 22
millimeters (mm) by 8 mm by 11 mm. The sensors operate at ranges of up to 1.5 meters; and offer
flexibility for lens mounting, a wide range of aperture accessories, and separate transmitter and
receiver housings. As well, the self-contained design eliminates the need for an external amplifier
or controller.

April 2004

Fabricato-Tejicondor Expands Operations


C
olombia-based Fabricato-Tejicondor and its subsidiaries form a group of companies
dedicated to the textile industry. The company is the result of the merger of two of the most
traditional textile firms in the country: Fabricato and Textiles El Condor (Tejicondor).

Fabricato was founded in 1920 and started its operations in Bello, Antioquia. Tejicondor was
founded in 1934 in the city of Medellin.

colombiarope
The opening and carding room in one of the Fabricato-Tejicondor Group plants is equipped
with Trützschler equipment.

Fabricato-Tejicondor’s tradition, knowledge and experience in the textile business allow the
company to offer its numerous customers a vast range of textile and apparel products including
yarns, woven fabrics, knitted fabrics, nonwoven articles, interlinings and home furnishings.

The company also has a tradition of exporting its fabrics and apparel products to markets in
the United States, Europe and Latin America.

Since the merger, the company has grown and now has a total of 6,480 employees. It has
installed 171,376 ring spindles and 5,160 rotor spindles.

The volume produced each day is 285,000 linear meters of woven fabric and 48,000 meters of
knitting fabric, for a total of 333,000 linear meters.

colombiamachine
A Monforts sanforizing machine


Subsidiaries


•    Fabricato is dedicated to the production of yarns and fabrics made of
100-percent cotton, as well as cotton/polyester blends.

•    Pantex is dedicated to the production of fashion fabrics and linen with
pre-dyed yarns, in a wide variety of blends with natural and man-made fibers, including cotton,
linen, polyester, viscose, nylon, Modal® and Tencel®.

•    Riotex produces knitted fabrics made with numerous blends of natural and
man-made fibers including cotton, polyester, viscose, nylon and Modal.

•    Notejidos is dedicated to the production of nonwovens, disposable
articles, interlinings for apparel, geotextiles, and hygiene products that can be used in
applications at home and in the hospital.

•    Cinsa produces apparel articles for export to the United States, Europe
and Latin America.

•    Comercia is a subsidiary that specializes in financing matters.

•    Fabritexca – the first foreign subsidiary – was founded in 1992 in
Caracas, Venezuela, to cover the growing market in that country.

•    Fabridor opened in 1993 in Quito, Ecuador, and supplies high-quality
textile products.

•    Fabrimexico opened in 1997 in Mexico City in association with Tejicondor.

colombiamachine2
A fabric washing machine from Arioli is installed at Fabricato-Tejicondor.


Reorganization And Modernization


At the present time, the company is reorganizing and modernizing its installations to meet
the demands of the market and become more competitive.

The modernization is 95-percent complete, with investments in buildings, machinery and
equipment worth more than $30 million. This represents a great effort for the company, as the
resources for the investments must come from the sales of its products, not from foreign sources.

colombiaroll
Weaving machines from Sultex are equipped with jumbo cloth-winding equipment.

Details of some of the plant reorganizations follow:

Kansas Plant has installed a new sizing machine from Sücker Müller for the
production of indigo and a new warping machine from Hacoba. This installation has increased the
production capacity of the plant to 1 million meters per month.

The plant also has acquired 44 Sulzer Textil L5400 air-jet weaving machines from Sultex Ltd.,
for a total of 143 weaving machines, which enable a production capacity of 90,000 meters per day of
denim fabric. It also has installed modern equipment from Luwa for the climatization of the plant,
as well as circular cleaners and jumbo cloth-winding equipment for the weaving machines.

Finishing Plant F1 has installed two tenter frames – one from Monforts and the
other from Krantz; a pad batch line for the dyeing of short lots; and a washing machine from
Arioli.

It also has installed a singeing machine from Pantex Plant, a new dryer from Sims, one
sanforizing machine that was transferred from the Barbosa plant, and a new sanforizing machine from
Monforts.



Rotor and Yarn Plant #3
has installed rotor machines transferred from the F1 and
Tejicondor plants, to provide a total of 5,160 rotor spindles. It also has 14,700 ring spindles for
the production of thick yarns, and it recently installed two brand-new machines from Savio.

At this plant, the old equipment for opening and carding has been completely replaced with
new Trützschler machinery, including two Blendomats with cleaning lines; 26 new high-production
cards (100 kilograms per hour capacity); and 11 new draw frames with short-term auto-leveling
system.

The Combed Yarn Plant has been modernized with the installation of 13,000 Marzoli
spindles transferred from the Venezuela plant, as well as Marzoli roving frames and draw frames
transferred from the same plant.

This spinning mill was completed with equipment for opening and carding transferred from the
Tejicondor plant, as well as with 12 new combing machines from Rieter and 10 yarn-covering machines
from Murata.

The Carded Yarn and Polyester Plant produces 15 tons of yarn each day using 15,000
spindles, 8,000 of which have been adapted for core-spun yarns for the production of stretch
fabrics. This plant has been equipped with Marzoli spinning frames and high-production cards from
the Venezuela plant; several spinning frames with PK 225 drawing systems transferred from
Tejicondor; and pickers and draw frames from Trützschler.

The Drill Fabric Plant has been equipped with 66 new double-width Sulzer Textil
P7100 weaving machines from Sultex, for a total of 110 Sulzer Textil weaving machines. This plant
is dedicated to the production of heavy drill fabrics and has a production capacity of 43,000
meters per day.

Weaving Plant #1 has 173 weaving machines from Sultex and a production capacity of
40,000 meters per day for the manufacture of drills and poplin. It also has two sizing machines and
two warping machines, as well as the latest technology in climatization and circular cleaners for
the looms to improve fabric quality.

Pantex Plant, equipped with Saurer 400 weaving machines, has been expanded to
include 35 Picanol rapier weaving machines transferred from the Tejicondor plant and 14
double-width Sultex weaving machines. The current capacity of the plant is 50,000 meters per day.

Riotex Knitting Plant is in the process of modernizing its machinery, using an
investment of $6.5 million. New equipment will include 21 circular knitting machines, five dyeing
machines, one brushing machine, one fabric opener, a drying and compacting line, equipment for the
automatization of the dyeing process, and equipment for the treatment of hot waste water used in
the process.



April 2004

Rieter Installs 500th ComforSpin®, Opens Office

Switzerland-based Rieter Machine Works Ltd. has sold its 500th ComforSpin® machine to China-based
Lu Thai, a vertically integrated company with spinning, weaving and knitting plants, as well as
finishing and garment manufacturing operations. During a ceremony to commemorate installation of
the machine, Rieter representatives Kurt Schneeberger, head, combing/ring-spinning business unit;
Werner Haltner, sales engineer, China; and Jianglin Lei, sales engineer, China, presented a
gold-plated perforated drum and a rock crystal to Lu Thai’s management team, comprising Li Tongmin
and Wang Fang Fhui.

spinningrieter
Left to right: Jianglin Lei, Rieter; Li Tongmin and Wang Fang Fhui, Lu Thai; and Werner
Haltner and Kurt Schneeberger, Rieter, commemorated the installation of Rieter’s 500th ComforSpin®
machine in a formal ceremony.

In other company news, Rieter recently expanded its sales and service network in China with
the opening of a new office in Jinan, Shandong Province.

April 2004

Saurer Group Acquires M&J Fibretech

The Saurer Group, Switzerland, has purchased Denmark-based M&J Fibretech A/S, an engineering
company that designs and supplies airlaid systems. Germany-based Neumag, a Saurer Group company, is
responsible for all nonwovens products.

“Airlaid is a process with extremely good prospects and perfectly supplements our ranges of
products and services, as it can be combined with our other spunbond process,” said Carsten
Voigtler, Ph.D., CEO, Neumag.

“With this purchase, we have expanded our solution competence in the nonwovens sector and
have strengthened our market position as a Total Solutions Provider,” said Heinrich Fischer, CEO,
Saurer.

April 2004

Uster® Yarn Grades Statistics Available On-Line

Switzerland-based Uster Technologies AG has made Uster® Yarn Grades and Uster Statistics available
free of charge on-line at
www.uster.com. Yarn Grades comprises a complete collection of
yarn faults both foreign fiber and thick places in a full-size, color format for a variety of yarn
types, including ring-spun, open-end and compact yarns.

April 2004

Techmer PM Offers Advanced Organic Peroxides

Techmer PM LLC, Rancho Dominguez, Calif., has introduced two new organic peroxide concentrate
formulations — TechsperseM12460E151 and TechsperseM12457E196 — that provide optimized,
cost-effective production of high-quality polypropylene fibers and nonwovens. During polypropylene
extrusion, the organic peroxide pellets set off visbreaking, a chemical reaction that lowers the
viscosity of the polymer melt, boosting throughput and improving the end-products physical
properties, according to the company. The reaction, which occurs at temperatures above 347°F, also
enables production of ultra-fine fibers.

The concentrates typically are added at loadings of 2 to 8 percent, but can be added at
loadings of up to 20 percent if required for a specific product.

April 2004

UNIFI Announces Restructuring Plans

Unifi Inc., Greensboro, N.C., will restructure its operations in order to cut costs and improve
earnings. Actions include plant closings and downsizing, reorganization, and reduction of salaried
employees. Approximately 400 jobs 10 percent of Unifis work force will be eliminated.

Brian Parke, president and CEO, said excess capacity, raw material price hikes and ongoing
import pressure challenge the US textile industry. “We expect that it will continue to be a
difficult market, but we are focused on defending our base business at a profitable level, while
growing our value-added product portfolio to enhance our earnings,” he said.

Unifi will close its Altamahaw, N.C., air-textured polyester production plant and move that
production and equipment to its Yadkinville, N.C., plant. Partially oriented yarn production in
Ireland will cease, and other operations in Ireland will be consolidated at one facility. The
company also will close its package dyeing plant in England.

Unifi will eliminate 50 salaried positions at its headquarters and certain US manufacturing
plants in order to reduce administration, selling and general expenses and allocated manufacturing
expenses.

April 2004

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