Hanesbrands To Close Puerto Rican Plant Move Production To Caribbean Basin

Hanesbrands Inc., Winston-Salem,
N.C., announced it will close its textile manufacturing plant in Ponce, Puerto Rico, by the end of
January 2007 and move that production to existing lower-cost production facilities in the Caribbean
basin. Approximately 500 employees at the Ponce facility, which makes fabric for T-shirts and
underwear briefs, will lose their jobs.


The move is part of the company’s
supply chain strategy to transfer manufacturing operations to lower-cost regions in the Western
Hemisphere and ultimately to balance those operations with manufacturing in Asia.

“Moving production from Ponce to the Caribbean basin is necessary to improve Hanesbrands’
efficiency and competitiveness,” said Gerald Evans, executive vice president and chief global
supply chain officer, Hanesbrands. “As part of our multiyear supply chain improvement strategy,
Hanesbrands is ramping up high-volume, lower-cost production in new textile manufacturing
facilities in Central America and the Caribbean basin.”

Evans expressed regret for the loss of jobs in Ponce, adding, “We have a good workforce in
Ponce, but this move is an economic necessity for our organization overall in today’s competitive
global market and does not reflect the quality and dedication of the Ponce workforce.”

The planned closure of the Ponce facility follows previously announced plans to close two
plants in the Carolinas and one in Mexico and move most of that production to Central America and
the Caribbean basin, and to consolidate three US-based distribution centers. The company also
announced recently it has signed an agreement to purchase its first manufacturing facility in Asia
– a sewing plant in Thailand.

US-China Commission Finds Fault WIth Chinese Trade

The US/China Economic and Security
Review Commission has sent Congress its annual report, citing what it calls “troubling trends” as
China fails to live up to its international obligations as a major economic power. As the report
was released, the commission’s chairman, Larry M. Wortzel, said, “[W]hile China is a global actor,
its sense of responsibility has not kept up with its expanding power.”

The 12-member bipartisan commission was created by Congress to investigate and analyze US
relations with China and make recommendations to Congress and the administration with regard to
economic and national security implications of the US/China relationship. During this past year,
its members met with Chinese government and communist party officials, Chinese business leaders,
American diplomats and American business people working in China.

The commission’s report contains 44 recommendations, several of which are related to trade
in textiles and other manufactured products. Chairman Wortzel said that while China has
demonstrated it understands its obligations to the 149 other countries in the World Trade
Organization (WTO) and has made considerable progress in writing internal legislation and
regulations, it is “falling short on its implementation of new laws and regulations and is failing
to adequately enforce laws already on the books.” He said this is particularly true with respect to
protection of intellectual property rights. Wortzel said Congress needs to urge the US Trade
Representative to press ahead “ aggressively” with cases against China’s failure to enforce
intellectual property rights.

In connection with other international trade issues, the commission pressed particularly
hard for action to address China’s currency manipulation. In that regard, the commission
recommended that Congress urge the administration to take to the WTO and the International Monetary
Fund a complaint about China’s manipulation of currency. It also recommended that Congress pass
legislation to modify requirements for the Treasury Department’s biannual report on countries that
practice currency manipulation, making it clear that countries that artificially peg their currency
in order to gain a trade advantage are violating international trade rules. In addition, the
commission urged Congress to pass legislation granting the US Department of Commerce authority to
impose countervailing duties against products imported from nonmarket economies.

Auggie Tantillo, executive director of the Washington-based American Manufacturing Trade
Action Coalition, which represents a number of manufacturing industries, including textiles, said
the incoming Congress needs to seriously consider the commission’s recommendations and “act
appropriately,” adding that Congress needs to hold the Bush administration accountable for “
failures in its China policy.” He said a good first step would be enactment of legislation to
combat currency manipulation.

In 2005, the United States had a record $202 billion trade deficit with China, and it
appears 2006 is headed for a 10-percent increase over last year.

November 21, 2006

Clariant Restructuring To Cut 2,200 Jobs Worldwide

Switzerland-based specialty chemicals
manufacturer Clariant International Ltd. has announced a series of cost-cutting,
performance-strengthening initiatives, with the goal of creating value and achieving long-term
top-quartile performance. The initiatives, estimated to cost 500 million Swiss francs over the next
four years, will encompass the closure of 10 percent of sites across all businesses and a
corresponding reduction in the company’s global workforce — representing a loss of 2,200 jobs; as
well as a 25-percent reduction in the number of products it offers. Performance-strengthening
initiatives include increasing leadership skills and entrepreneurial behavior.

“Our clear goal is reaching a top-quartile position among our peers in value creation,” said
Jan Secher, CEO. The company looks to achieve a 25-percent increase in the return on invested
capital by the end of 2009.

In order to become more customer- and market-focused, Clariant will revamp its sales and
distribution operations. “Our product-driven businesses, which represent 40 percent of our
portfolio, need to be managed with an intense focus on efficiency, maintaining an extremely
cost-competitive structure, while our service-driven businesses need to combine cost leadership
with application technology and solutions know-how,” Secher said.

In addition, the company will further centralize certain group functions — such as site
services, sourcing and supply chain management — that support its four divisions: Textile, Leather
& Paper Chemicals; Pigments & Additives; Masterbatches; and Functional Chemicals.

Plans also call for expansion of capacity to supply product to the company’s growing markets
in Asia, especially in China and India. At the same time, Clariant will close sites, particularly
in Europe, in order to tighten its global site network.

In addition to the planned 25-percent reduction in product variety, the company reported it
already has reduced its offering of textile dye products from approximately 3,000 to some 500,
resulting in much improved operational efficiency.

“The approach is one of strategic simplicity and increasing versatility,” Secher said. “That
means being highly intelligent about how we both reduce and manage complexity. This is being done
so that it lowers our production, sales and delivery costs in a long-term, sustainable way,” he
added, noting that the company offers a mix of specialized and standard products.

The company’s recently established Clariant Academy will offer its employees opportunities
for professional development, pinpointing proficiency in performance management and creating
programs for sharing expertise across all businesses.

November 21, 2006

BASF Raises Dispersion Prices In Europe

Effective November 1, 2006,
Germany-based BASF AG has increased prices for acrylate and XSB copolymer dispersions by 60 to 80
euros per metric ton in Europe. The company said the price hike reflects significantly increased
raw materials, transportation and energy costs that it is no longer able to offset by efficiency
improvements.



November 14, 2006

Textile Importer Interests Press For Passage Of Trade Pacts

Trade associations representing
textile manufacturers and apparel importers have appealed to President George W. Bush and leaders
of Congress to approve three international trade bills during the current lame duck session of
Congress. They are particularly concerned that permitting the Andean Trade Promotion and Drug
Eradication Act (ATPDEA) to expire will disrupt trade with South American countries.

The trade associations have written the president and both Democratic and Republican leaders
of the House and Senate urging them to act on:

· The Andean pact involving Peru, Colombia, Bolivia and Ecuador, which is due to expire
December 31. They say the Andean region is an important and growing market for US textile exports,
but the prospects for this market are “troubled.” They said, “Anticipating the imminent loss of
duty-free access for that region in less than 60 days, many US apparel importers have begun
shifting their business elsewhere.”

· Approval of the US/Peru Trade Promotion Agreement (TPA). That agreement already has been
signed by both governments and has received congressional hearings and mock mark-ups in both
chambers, so it could be enacted swiftly.

· Approval of the US/Colombia TPA, which still has to be signed, could be taken care of
before Congress adjourns. The time frame for that to happen is extremely tight, which underscores
the importance of enacting the Andean pact extension granting duty-free treatment of apparel
imports until the bilateral agreement is finalized.

The trade associations said swift action on all three initiatives this year is “vitally
important,” pointing out that failure to act will result in a gap in trade preference authority
that would jeopardize trade in the region.



November 14, 2006


Springs Sells Decorative Floor Business To CSB World Carpets

Springs Industries Inc., Fort Mill,
S.C., has sold its Springs Decorative Floor Inc. area and accent rugs business to C.S. Brooks (CSB)
World Carpets Inc., Dalton, Ga., for an undisclosed price. The purchase includes Decorative Floor’s
manufacturing facilities and related assets in Dalton and Canada. CSB World also has received a
license to use Springs’ Springmaid®, Wamsutta® and Regal® brands in its marketing efforts.

“[CSB World is] very pleased to have this opportunity to work with Springs Industries and
the current management and employees of Decorative Floor Inc. to continue to help build on the
successes they have demonstrated in the accent and area rug markets,” said Brook Johnson, founder
and CEO, CSB World Carpets.

“We are pleased to position our decorative floor business for future growth with CSB World,”
said Crandall Bowles, chairman, Springs Industries. “We believe this will be a positive
development, for our employees as well as our customers. … [W]e expect to work closely with CSB
World on specific marketing initiatives for certain customers.”

Tina Gunter, formerly head of marketing at Springs Decorative Floor, will serve as
president, CSB World. She will continue to be responsible for design, sales and marketing in her
new position. David Wingate, formerly in charge of financial activities at Springs Decorative
Floor, will serve as executive vice president, CSB World, with responsibility for operations and
financial activities.

Springs Decorative Floor and another business unit, Springs Window Fashions, remained under
the umbrella of Springs Industries after the company folded its textile home fashions operations
into Springs Global US Inc. — the US subsidiary of Springs Global Holdings S.A., Brazil, formed by
the merger of Springs’ home textile business and its Brazil-based supplier, Coteminas — in late
2005. Springs Industries continues to operate Springs Window Fashions.

November 14, 2006

Performance Fibers Expands South Korean Low-shrink Fibers Joint Venture

Richmond, Va.-based Performance
Fibers has announced plans to expand capacity by 20 percent to produce next-generation,
ultra-low-shrinkage fibers at its South Korea-based joint venture operation, Performance Fibers
SYSKO. Sam Yang Corp., the largest of three South Korean partners in the venture, has begun
construction of an addition to its Jeonju plant and will install state-of-the-art equipment, with
expectations of completing the project by March 2007.

Applications for the low-shrinkage fibers include broadwoven and coated fabrics for awnings,
geosynthetics, outdoor upholstery, roofing, signage, tarps and tents. The expansion also will allow
increased production in South Korea of adhesive active yarns for consumer hoses and belts, and
fiber for automotive seat belts.

“The investment we are making to increase capacity and develop next-generation polyester
products demonstrates the joint venture’s dedication to be successful as the largest supplier of
low-shrink, high-tenacity polyester fibers to the automotive and industrial segments we serve,”
said Yoon Kim, chairman and CEO, Sam Yang Corp.

November 7, 2006

American Nonwovens Develops FR Mattress Fabrics

American Nonwovens Corp., Columbus,
Miss., has developed a series of lightweight, inner-lining materials for mattress ticking and
sidepanels that, when effectively incorporated into a bed’s design, ensure compliance with TB603
and 16 CFR 1633 flame-retardant (FR) standards.

“For the past three to four years, we have been working to solve the challenge created by
the new federal standard 16 CFR 1633 (which comes into effect in July 2007) and believe that we
have a solution for the bedding industry that will mean the least interruption or change to the way
they currently produce mattresses,” the company stated in its announcement of the new materials.

November 7, 2006

Dow Reichhold Develops New Antimicrobial Polymer Technology

Research Triangle Park, N.C.-based
Dow Reichhold Specialty Latex LLC has developed new technologies to manufacture emulsion polymers
that offer a range of antimicrobial uses.

“Because our antimicrobial water-based polymers can be integrated into products in many
ways, including as coatings, adhesives, saturants or films, … this technology should enable our
customers to more easily incorporate sustainable antimicrobial functionality into their products,”
said Venkataram Krishnan, Ph.D., new business technology leader, Dow Reichhold.

The company is currently working with select companies to determine end-use applications
that would benefit from the technologies.



November 7, 2006


A Question Of Change


I
taly-based automation specialist U.T.I.T. Automation S.p.A. was established in 1953 by
the Ognibene family to manufacture material handling systems for an array of industries including
textiles, chemicals, food, pharmaceuticals, paper, metals and others. The company, whose Textile
Division designs, manufactures and installs material handling systems in staple-fiber spinning
plants, installed its first transportation system in a spinning mill in 1965. Solutions offered
include bobbin transport systems and package handling systems. Recently, it has organized its
offerings relevant to the specific ways for the spool transport from the roving frame to the
spinning frame.


Bobbin Transport System

According to U.T.I.T., the bobbin
transport system is the area in spinning mills where investments in automation are most easily
justified. Noting that automated bobbin transport offers the advantages of labor savings and a
substantial increase in bobbin quality, the company explains that the flyer bobbin is one of the
most delicate intermediate products to handle for two reasons: the roving wound around the bobbin
is completely unprotected and is therefore highly susceptible to damage; and all roving defects are
transferred to the yarn and cannot be corrected. Automated bobbin transport eliminates the need
both to handle the bobbin or touch the textile product and to maintain intermediate storage areas,
where bobbins can accidentally age, get dirty and deteriorate.

utit1

U.T.I.T.’s automated bobbin transport systems eliminate the need to handle the
bobbin.


Random Creeling

The random creeling method of bobbin
transport takes its name from the way the empty bobbin is changed with the full one on the ring
frame creel — randomly, when the bobbin naturally runs out of roving. Bobbins are transported via a
closed-circuit overhead chain routed along the aisles between ring frames. The chain interfaces to
the flyer that feeds the system with full bobbins.

The overhead circuit slowly moving on ring frames works as a dynamic buffer of spare full
bobbins ready to be used by the operators. Whenever a bobbin is changed, the empty one taken from
the creel is loaded onto the circuit and carried back to the flyer; here, either by means of the
roving frame automatic exchanger or manually, empty bobbins are exchanged for full ones. Whenever
the flyer frame automatic exchanger sees an empty bobbin coming, it stops the circuit and exchanges
the empty bobbin for a full one.


Block Creeling

The main characteristic of the block
creeling transport solution is that flyer bobbins on the ring frame creel are changed in preset
quantities, or blocks. Components called trains run along this circuit, with each train conveying a
bobbin block to be changed. During the working cycle, a full bobbin train positions along the
spinning machine in front of the bobbin block to be changed, and the operator replaces empty
bobbins on the creel with full ones, transferring the empty bobbin block to the train.

The train returns to the roving frame area, where empty bobbins are unloaded automatically
and full bobbins are loaded for the next conveying cycle.


Automatic Block Creeling

According to U.T.I.T., the automatic
block creeling system maximizes flexibility by combining flyer, product and ring frame. Such
combinations can be modified easily and quickly using a monitoring PC, which functions as the main
user interface.

In this system, empty bobbins on the ring frame creel are changed by creel lines — blocks
that equal one-sixth or one-quarter of the total number of bobbins on the ring frame. The spinning
frame consists of pairs of tracks — one per line A, B, C, D, E, F. In each track pair is inserted a
bobbin train, which supplies the spindles.

As soon as the bobbins on a train are nearly empty and the bobbin diameter is thin enough,
the operator introduces a train of full bobbins in the twin track beside it. The creel operators
then splice the rovings to new bobbins and send the empty bobbin train back to the flyers, where
the empty bobbins are unloaded and full bobbins are loaded automatically for the next conveying
cycle.

Such a system also can be used for total changing of ring-frame bobbins without stopping the
spindles.

utit2


Automated roving bobbin handling is a strategic opportunity for cost-cutting and reducing
poor-quality bobbins.


Total Creeling

In U.T.I.T.’s total creeling system,
all the bobbins on the ring frames are replaced simultaneously. The four or six working lines of
the ring frame creel are made of U.T.I.T. MWL track on which the transport chain, or train, carries
the line bobbins. As soon as the bobbins are nearly empty, the operator orders the bobbin change by
means of a user panel; empty bobbin trains leave the creel one by one, and full bobbin trains are
introduced in the creel.

An overhead storage area, which works as a buffer between the roving frames and ring frames,
contains full bobbin trains, available for the next bobbin change, and empty bobbin trains, as
supply for flyers.

The automatic total creeling transport system maximizes flexibility in the link between the
spinning and roving frames, with the flyer-product and product-ring frame pairings, U.T.I.T.
reports. Such combinations can be modified easily and quickly using a monitoring PC, which
functions as the main user interface.


Wool Bobbin Transport

The company points out that the
aforementioned transport solutions also have applications in the long-staple wool and acrylic
fibers field to transport bobbins from finishers to ring frames. Bobbins from the finisher are
automatically loaded onto the transport circuit by means of a special bobbin lift. Bobbin tubes,
after stripping, are automatically unloaded from transport and collected in a container.

When bobbin weight, product variety and small lot sizes are taken into consideration, the
total creeling system is the most suitable for wool spinning, according to U.T.I.T.


Automatic Bobbin Stripper

After the empty bobbins have been
unloaded and transported from the ring frame, they must be stripped of any unused roving before
they can be filled again and returned via transport system to the ring frame. Building on 15 years’
experience with bobbin-stripping processes, U.T.I.T. has developed an automatic bobbin-stripping
machine that it says offers an innovative, efficient and reliable solution for a fully automated
spinning plant.

In the automatic stripping process, an empty bobbin is removed from the transport system
hanger as it passes through the stripper, while full bobbins remain on their hangers and also pass
through. A patented air veil on the stripper spike prevents the roving from being trapped between
the spike and the bobbin. The machine also checks for and finds the roving if it should break
during the stripping process, opens the fiber during stripping, features a variable stripping cycle
and prevents fiber pollution from other blends or colors.



Package Handling Systems

U.T.I.T. also offers automated
centralized and end-of-line package handling systems, pointing out that installation of such a
system represents a considerable turning point in the automation of spinning mill processes. The
automated collecting and packing system allows operators the flexibililty to break the production
rhythm and customize the flow of the final packed units. The automated system interfaces directly
with the production line and provides fully independent package handling and packaging processes.

According to the company, the main advantages of an automatic package handling system
include: labor rationalization and savings; optimization of spinning and storage space; production
reliability and continuity; final production feedback; elimination of manual handling of packages;
and separation of production and packing operations.


Editor’s Note: European Correspondent Piergiuseppe Bullio and Associate Editor Janet Bealer
Rodie contributed to this report.

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