Mohawk To Acquire Lees CarpetsMohawk Industries Inc., Calhoun, Ga., has agreed to purchase
Greensboro, N.C.-based Burlington Industries Inc.s Lees Carpets division. The deal, worth an
estimated $352 million, is a provision of New York City-based WL RossandCo. LLCs successful bid to
acquire Burlington.Lees Carpets is a leader in the contract commercial segment of the industry with
products that will complement our existing product line, said Jeffrey S. Lorberbaum, president and
CEO, Mohawk. It is Mohawks intention to strengthen Lees sales and marketing by offering new
products and expanding the existing business.Lorberbaum praised Lees employees and operations in
Greensboro and Glasgow, Va. We believe the financial strength of Mohawk along with our excellent
employee relations history will add to the security and stability for Lees employees, he
said.Mohawk has continued to perform well through the recent US economic turbulence, posting record
earnings in the second quarter 2003.
September 2003
Mohawk To Acquire Lees Carpets
Future Of Trade Liberalization Talks In Serious Doubt
Future of Trade Liberalization Talks in Serious DoubtUS textile manufacturers and cotton producers
were pleased with the September 14 collapse of World Trade Organization (WTO) trade liberalization
talks in Cancun, Mexico, but importers of textiles and apparel, and retailers said it was a serious
blow to consumers. As broad differences between the developed and developing nations surfaced and
cut the talks short, negotiators said the future of the WTOs Doha Round of trade liberalization
negotiations, due to be completed by January 2005, was in serious doubt.When the talks collapsed,
US Trade Representative Robert B. Zoellick issued a bitter statement saying the US was prepared to
negotiate in good faith, but that other countries were not willing to work toward narrowing gaps in
their positions on trade.Zoellick said, Whether developed or developing, there were can do and wont
do countries here. The rhetoric of the wont do overwhelmed the concerted efforts of the can do. He
said that useful compromise must be reached during the remaining course of the overall talks if the
trade liberalization effort is to succeed.US textile and cotton representatives monitoring the
meetings were pleased to see the talks end in disarray. Robert W. Greene, chairman of the National
Cotton Council, accused African nations of trying to gut the US cotton programs. He said, It was a
testimony to our negotiators that they saw through the rhetoric and did not lose sight of the goals
of the WTO negotiations, namely, greater reciprocal trade liberalization. Greene warned that a bad
agreement would bring substantial damage to the entire US cotton industry.Auggie Tantillo,
Washington coordinator for the American Manufacturing Trade Action Coalition, said that if the
talks had moved forward, the final result would have mandated further substantial reductions if not
total elimination of US tariffs in practically all manufacturing sectors. He said that as the talks
stalled it became evident the developing countries were demanding substantial concessions with
regard to market access without a willingness to provide equal reciprocity in terms of access to
their own markets. He said concessions offered by the US and Europe were not sufficient to satisfy
trade ministers from the developing countries, who, he said, were more interested in entitlements
to export more products to the developed countries rather than reciprocal market access.Cass
Johnson, interim president of the American Textile Manufacturers Institute, said the breakdown of
the talks renders the future of the Doha Round negotiations problematic. He said the proposed draft
document that was to serve as a guide for the negotiations contained loopholes benefiting
developing nations that would replace any notion of equity and reciprocity for all. With its
manufacturing sector experiencing major job losses, he said the US no longer is in any position to
just give, give, give anymore.US importers of textiles and apparel saw the collapse in a different
light. The National Retail Federation (NRF) issued a statement saying American consumers and
developing nations exporters are the real losers. Noting that a number of developing-nation trade
ministers said they would seek individual free trade agreements with the US in lieu of a WTO
agreement, NRF Senior Vice President of Government Relations Steve Pfister said free trade
agreements do not provide the developing countries with the kind of tariff-free access to the US
market that the multilateral process would have yielded. He said free trade agreements have rules
of origin that frequently erase any benefits of tariff elimination. Nonetheless, Pfister held out
the hope that the negotiations could be resumed and that WTO members could conclude the round of
negotiations successfully by the January 2005 deadline.By James A. Morrissey, Washington
Correspondent
September 2003
Saint-Gobain Owens Corning Build Joint Facility
The reinforcement branch of Saint-Gobain, France, and the Composite Solutions Division of Owens
Corning, Toledo, Ohio, announced they are jointly developing a glass reinforcement facility in
Mexico. The plant will be located adjacent to Saint-Gobain Vetrotex Americas reinforcement facility
in Tlaxcala. Construction work for the site began in August, and production and delivery are
planned for late 2004.The 50/50 joint venture will produce roving products for a broad range of
end-user markets. Dick Lantz, president, Owens Corning Composite Solutions, said locating the new
facility in Mexico allows the company to cost-effectively meet the needs of customers in the
Americas.
September 2003
Robustelli Introduces Monna Lisa Digital Printer
F.lliRobustelli S.r.l., Italy, has launched the Monna Lisa piezo-electric digital printer. According to
Robustelli, the Monna Lisa provides extremely precise printing, has a high level of production and
is low-maintenance.Robustelli entered into a collaboration with Japan-based Seiko Epson Corp.
(Epson) and Italy-based FOR.TEX S.r.l. to develop, sell and market special inks for the
printer.Epson is providing the piezo print heads for the Monna Lisa, and has developed two series
of inks for use with the printer. The inks are marketed and sold by FOR.TEX under the Genesta brand
name. Genesta AC comprises 11 colors of reactive ink for use on cottons; and Genesta RE includes 10
colors of acid ink for use on wool, silk and nylon.Robustelli currently targets sales of its
printers to Italy and plans to expand sales globally in the future. It expects to sell 500 printers
over the next three years.
September 2003
Taking It To The Knitters
Circular-knit seamless concept from SantoniKnitting machinery manufacturers will converge on
Italys fashion capital in October to tempt knitwear designers and producers with their newest
products and technologies. The inaugural International Knitting Machinery Exhibition (IKME) 2003,
organized by Fiera Milano International (FMI) S.p.A., will be held Oct. 16-20 at Fiera Milano in
Milan. The exhibition was conceived in late 2000, when a number of knitting machinery manufacturers
decided to organize a show dedicated to the knitting sector. These manufacturers including Protti
Fashiontronix S.p.A., the Lonati Group, Shima Seiki Mfg. Ltd. and H. Stoll GmbHandCo. KG, among
others chose to base the show in Milan, a major fashion hub well-situated close to many
high-fashion knitwear manufacturers and designers. IKME will be held in Fiera Milano Pavilions 5, 6
and 7 an area totaling 15,000 square meters. Daily hours of operation will be from 9:30 a.m. until
6:30 p.m. Visitors will enter the fairgrounds through the Porta Giulio Cesare. Admission will be
free of charge, but the exhibition will be open to the trade only.Taking place the week before ITMA
2003, IKME will present the products and services of more than 70 companies from around the world.
The majority of the exhibiting companies are based in Italy, but Germany, France, Spain,
Switzerland, Turkey and Japan also will be represented among the exhibitors. While flat knitting
machinery will comprise the bulk of the knitting machinery on view at IKME, circular knitting
machinery manufacturers also will be present. Other products to be displayed include making-up,
washing, pressing, finishing, and other complementary machinery and equipment; software;
accessories; and ancillary products and services. Exhibitors will be organized according to product
sectors.IKME officials stress that technical innovation will be a major focus of the show. The
exhibiting companies are actively working towards bringing sound new developments to the market,
said Umberto Protti, IKME chairman. This is the only way to finally kick-start the sector after
these last couple years of recession. Show organizers have marketed IKME not only to knitters based
in Italy and the other major European countries, but also to knitters from the rest of Europe
particularly Eastern Europe and from Asia and South America. With the assistance of Milan-based
travel agency Anteprima/Easy Hotel, they have put together special travel packages and a
bed-and-breakfast network a first in Milan to provide economically priced accommodations.
A Special EventPavilion 7 will include IKMEs reception area. Occupying center stage here, in
a sophisticated and fashionable setting, will be Per filoandper segno (YarnsandStitches), which FMI
describes as a kind of laboratory for the display of sample knitting stitches and a range of yarns
provided by various spinning mills. Per filoandper segno will present more than 1,000 knitting
stitches, divided into commodity categories, to spark visitors imaginations and inspire
creativity.Ornella Bignami, director of the event, noted that creativity derives from technology
and yarn quality. Per filoandper segno is a combined display of the two driving forces that are
able to provide knitwear factories with ideas to improve their product and therefore their
competitive position on the market, she said.Carlo Bassi, IKMEs exhibition director, added, Per
filoandper segno will be an absolute first for a textile machinery fair, because it will attract
not only knitting machinery technicians but also product men and fashion designers. He stressed the
innovative and creative nature of the stitches that will be presented.Five computer workstations
connected to color printers will allow visitors to download and/or print out the stitch database.
Some computers also will be connected to a projector to enable display of the stitches on a large
screen.A Sampling Of ExhibitorsOn the exhibit floor, visitors will have additional opportunities to
see stitch patterns that can be produced using machines offered by individual exhibitors. For
example, Germany-based flat knitting machinery manufacturer H. Stoll GmbHandCo. KG will show its
own pattern collection and ready-to-wear concept articles designed using its M1 pattern workstation
and made using the Stoll knit-and-wear® system. Among the knitting machines on display will be
Stolls CMS 340 TC knit-and-wear machine.
Stoll’s CMS 340TC knit-and-wear® machine
The PV22P two-needle-bed flat knitting machine from Protti Fashiontronix is used to knit
fancy, fine-patterned, shaped garments.Italy-based Protti Fashiontronix S.p.A., another producer of
flat knitting machines, will show the PV4i machine, which can knit whole garments or shaped garment
parts; and its PV22P two-needle-bed machine for knitting fancy, fine-patterned, shaped
garments.Lonati subsidiary Santoni S.p.A., also based in Italy, will show its SM8-EVO4 eight-feed
single-jersey and SM9 double-jersey electronic circular knitting machines used in the production of
ready-to-wear seamless apparel.Shima Seiki, Japan, will show its SDS-ONE computerized graphic
design system for the apparel industry, as well as its WHOLEGARMENT® technology for production of
seamless flat-knit garments.In the accessories sector, Groz-Beckert KG, Germany, will exhibit its
line of knitting machine needles and provide information about new developments.
Groz Beckert’s flat knitting needleIKME 2003 ExhibitorsAgteks Knitting and Textile Industries
Co. Ltd.APM Tecnotesia S.r.l.Audino EditoreAurea Filcrosa S.r.l.CaperdoniChristian Pinkert,
Wirk-Undstr.Cibitex S.r.l.Comat S.r.l.Comez S.p.A.Conti ComplettCorghi S.p.A.Dal elektronik
Bilgisayar San. ltd. stiDeimoEditoriale ModaEMM S.r.l.Eneas Informatica S.r.l.Exacta S.r.l.Filiere
MailleFirsan, S.A.GandP Elettromeccanica S.r.l.G. MentastiGesto EditoreGiovanni Bozzetto
S.p.A.Groz-Beckert KGGruppo Editoriale Faenza Editirice S.p.A.H. Stoll GmbHandCo.HaaseandKuhn
S.A.Henschel KGImece SncInternational Textil Diffusion S.r.l.Jumberca S.A.Kern-Liebers Knitting
Parts GmbHKMF International Textilmaschunen AGKnitting International Llesor S.A.Logica
S.r.l.Mazzini ICI S.p.A.Mec-MorMediatex International S.r.l.Memminger-IRO GmbHMendizza S.a.S.Miele
Italia S.r.l.Monti Antonio S.p.A.Nepi OtelloandC. S.r.l.Nuova Alba elettromeccanica S.r.l.Nuova
ComasNustri sas di Nustri MarcoOmm Meccanotessile S.r.l.Organ Needle Co. Ltd.Prensa TecnicaProtti
Fashiontronix S.p.A.Reed Business InformationRonchetti S.r.l.Rosso Industrie S.p.A.RototradeSantoni
S.p.A.Saxonia Umformtechnik GmbHShima Seiki Mfg Ltd.Simet S.r.l.Sisma S.p.A.Steiger S.p.A.Studio
Sabatini sncTechno-Dry S.r.l.Tecnotessile S.r.l.Tex NewsTextile World/Textiles
Panamericanos/Textile World AsiaUesseti 2000 S.r.l.Universal StricksystemeZamark S.r.l.
For more information about IKME 2003, contact Fiera Milano International S.p.A., Palazzina FMI,
Largo Domodossola 1, 20145 Milan, Italy; 39 02 485501; fax 39 02 488995259; e-mail ikme@fmi.it;
www.ikme.it.
September 2003
TFFE Offered Innovations Experienced Growth
Sponsored by the Istanbul Textile and Apparel Exporters Association (ITKIB), the fourth edition of
the Turkish Fashion Fabric Exhibition (TFFE) held recently in New York City presented visitors with
many innovations, including new fabrics, finishes and process technologies.This years TFFE
attracted almost 1,600 buyers, an increase over past shows of almost 50 percent. Of the buyers at
the show, 588 were first-time attendees
(See NYC Fabric Shows, TW, this issue). Oguz Satici, chairman, ITKIB textile board, said,
As Turkey acknowledges free market rules, we are confident that using our marketing power to gain
recognition for the high-quality, high-value, innovative fabrics we offer will continue to pay off.
We are letting the US industry know that we are fashion creators as well as producers.
September 2003
September 2003
The Kaeser Condensate Filter (KCF) from
Kaeser Compressors
, Fredericksburg, Va., uses a three-stage, self-contained plastic filter cartridge to
filter out contaminants, making wastewater safe for disposal. Kaeser also has released “Energy
Savings in Compressed Air Systems,” an eight-page guide.
Kaeser Condensate Filter
Engineered Fibers Technology LLC
has relocated to: 25 Brook St., Shelton, Conn. 06484.
Charlotte-based
DAK Fibers LLC
has increased the price of all staple fiber products by 5 cents per pound.
Miami-based
Innovative Print Technologies
now publishes a Spanish edition of its monthly
Textile Times e-newsletter. The publication contains textile printing tips, business
assistance, an industry calendar and computer aids. To sign up for Textile Times, visit
www.innovativeprint.com.
Newark, Del.-based
Precision AirConvey’s (PAC’s)
new four-page brochure describes the TrimPAC™ Whisper high-speed trim removal system,
PAC’s edge trim waste and scrap removal systems for converting lines, and its 100-percent
performance warranty.
The
American Association of Textile Chemists and Colorists (AATCC)
, Research Triangle Park, N.C., and
North Carolina State University’
s College of Textiles, Raleigh, N.C., have made available two CD training programs,
“Basics of Fibers” and “Basics of Dyeing.” Regularly priced individual CDs are available. Combined
CD sets are available at a discounted rate.
Fasnap® Corp.
, Elkhart, Ind., recently released the third edition of its product catalog, which
includes information on the company’s line of snap fasteners, grommets, washers, rivets and
ventilators, among other products.
Rollguard® Products
, Appleton, Wis., has updated its website, www.rollguard.com. Features include the
Spec-Your-Own form, which allows customers to submit roll cradle application details on-line; and
an information request section, among others.
August 2003
No Signs Of Any Turnaround
D
isappointing news continues to cast a pallor over the hard-pressed textile sector. Latest
numbers on orders, production sales, prices and profits show few, if any, signs of even a partial
industry recovery.
Equally significant is the increasing concern over the flood of imported textiles and
apparel, particularly from China. To be sure, pressure is being put on Washington to do something
about these incoming shipments. But there’s little to suggest any meaningful relief, at least over
the next few quarters.
About the only positive news these days is the gradually strengthening economic outlook —
with gross domestic product gains finally beginning to point to a somewhat more robust consumer
buying trend. But even this isn’t likely to translate into any meaningful near-term textile
turnaround. Indeed, most analysts are now reconciled to a rather lackluster 2003. The only
consolation is that any declines will be considerably less precipitous than those noted over the
past few years.
A Closer Look At The Numbers
Lest there be any doubt about the current less-than-optimistic picture, take a more detailed
look at the latest industry statistics. Mill production is running 7.5 percent under a year ago,
and a whopping 24 percent under three years ago. Textile mill shipments are off by an equally
disturbing 14 percent over the past year. And, since inventory cutbacks have not been able to keep
up with these recent drops, the industry’s stock/sales ratio is once again on the high side (1.69
month’s supply for mills now versus 1.44 a year ago).
However, there are bright spots. Denim demand has been on the rise for more than a year now.
First-quarter 2003 denim production at last report was running 8 percent above 12 months earlier.
But demand trends tell only part of the story. Equally important are textile prices. And here the
news is negative, with overall mill quotes failing to budge from depressed year-ago levels, despite
rising raw material and other costs. Zero in on a key area like greige goods, and prices actually
have eroded a bit compared to year-earlier levels.
Profits And Margins Take A Hit
The impact of all this sluggishness is taking its toll on bottom lines — with most mills
sporting declines vis-à-vis a year ago. Thus, the industry’s overall after-tax earnings total has
dipped into red-ink territory, making it highly unlikely that mills will be able to even come near
last year’s $626 million profit performance.
Similar negative results are reported for after-tax margins — with the first-quarter 2003
0.3-percent red-ink reading for profits per dollar of sales running well under last year’s overall
1.3-percent positive rate. Much the same pattern is noted if you look at profits as a percent of
stockholders’ equity. And the just-ended second quarter doesn’t look any better, as such big firms
as Unifi and Dan River report losses.
The picture is even more disturbing when comparing recent results with those of 1998, when
after-tax profits were topping $2 billion — with a respectable 3.2-percent sales margin. Given
these numbers, it’s not surprising that more and more firms are filing for Chapter 11 bankruptcy
court protection. The latest is Pillowtex — maker of such renowned brands as Fieldcrest, Cannon,
Charisma and Royal Velvet. And it follows similar proceedings by Burlington Industries, WestPoint
Stevens, Malden Mills, Guilford Mills and Galey & Lord.
Import Worries Persist
The Pillowtex move in large part stems from the influx of cheap imports from Brazil, India,
Turkey and China. But it’s the latter nation that remains the industry’s biggest headache — and not
only because China is now the biggest contributor to our soaring textile and apparel trade
deficits. More troublesome is the likelihood of an even bigger wave of incoming Chinese shipments
in 2005. Faced with these threats, the industry continues to step up its campaign for relief — not
only by pressing Uncle Sam to impose standards that were agreed upon when China entered the World
Trade Organization, but also by pushing for an upward Chinese currency revaluation.
September 2003
The Specialty Fabrics Industry Gathers
industry.This years Industrial Fabrics Association International (IFAI) Expo, to be held in
Las Vegas at the Las Vegas Convention Center Oct. 1-3, is expected to draw more than 8,000
attendees, according to IFAI, the Roseville, Minn.-based not-for-profit trade association that
organizes the annual gathering of the specialty fabrics industry. As of press time, 466 companies
have registered as exhibitors, although IFAI expects the number to reach more than 500. A total of
7,356 professionals from 54 countries attended the 2002 event, which hosted a record number of 490
exhibitors.Taking place concurrently with IFAI Expo are several other events tailored to the
industrial fabrics industry, including:an educational program that features 14 tracks covering
topics as varied as business and leadership, and architectural structures;an awards competition
that recognizes advancements in specialty fabric design and manufacturing;a professional
certification program;a keynote presentation by a US Navy captain;a Signage of Vegas Tour; anda
co-located conference that focuses on fabric structures.Educational ProgramsNearly 100 educational
programs that include case studies, paper presentations, seminars and hands-on workshops are
scheduled to take place alongside the Expo. According to IFAI, program offerings are created for
specific niche markets, including: architectural structures; awnings and canopies; business and
leadership; equipment and technologies; filtration textiles; inflatable recreational products;
marine fabrication; medical textiles; safety and protective products; signs and graphics; sports
and recreational products; and transportation textiles. In addition, IFAI has added the new textile
construction track, which is touted as a back-to-basics review of textile composition.2003
InternationalAchievement AwardsWith 26 categories, the International Achievement Awards recognize
new and innovative contributions made by end-product manufacturers to the specialty fabrics
industry. Photographs of this years entries will be shown at IFAI Expo. The Award of Excellence and
Outstanding Achievement Awards will be announced during the Awards Breakfast on Oct. 1.IFAI
Professional Certification ProgramsBesides being a showcase for the latest in specialty fabrics,
the Expo show floor also will serve as a testing site for certification of specialty fabrics
professionals.The IFAI Professional Certification Programs allow professionals to become certified
as Master Fabrics Craftsmen, Certified Craftsmen, Industrial Fabrics Managers or Certified Project
Planners. Those who become certified during IFAI Expo will be honored at the Chairmans Gala
reception and dinner on Oct. 3.An orientation session for the certification programs will take
place Sept. 30 from 4 p.m. until 6 p.m.Keynote PresentationThis years IFAI Expo will feature a
keynote presentation by US Navy Captain Michael Abrashoff on Oct. 2. Abrashoff will share with Expo
attendees his leadership-focused presentation, Its Your Ship, based on his book of the same
title.Signage Of Vegas TourAs part of the pre-Expo activities program, the Banner, FlagandGraphics
Association, a division of IFAI, has arranged the Signage of Vegas Tour, which will make stops at
three Las Vegas locations, including the Venetian Resort Hotel Casino for a look at its near-scale
replicas of Venetian landmarks and artwork. The tour is scheduled for Sept. 30.Fabric Structures
2003The Fabric Structures 2003 conference will be held in conjunction with IFAI Expo from Sept. 30
to Oct. 1. It will feature case studies demonstrating the benefits of using fabric as a building
material, unique design elements and resources available in the fabric structures market.Included
in the conference are keynote presentations by Kazuo Ishii, president, Membrane Structures
Association of Japan, and James Carpenter, sculptor and proprietor of New York City-based James
Carpenter Design Associates.
For more information about IFAI Expo 2003 and its co-located events, contact IFAI (651)
222-2508; (800) 225-4324; fax (651) 631-9334; www.ifaiexpo.com.
September 2003
Erhardt Leimer Introduces ELStraight
Spartanburg-based Erhardt + Leimer Inc. has introduced the ELStraight weft straightener in the
United States, Canada and Mexico.The company says ELStraight can be retrofitted quickly on existing
systems to offer high-performance web control and weft straightening using image analysis and
advanced computation methods. Features include: compact, integrated reading heads to facilitate
process setup and improve reliability; color display; and guided menus for simplified machine
interaction and process control. The system can accommodate up to 32 reading heads, with Ethernet
connections to a central control unit; three diagonal correcting rollers; and two or three bow
correcting rollers.ELStraight can be used with a range of fabric types at fabric speeds of up to
450 feet per minute and widths of up to 133 inches. Minimum measurement resolution is 0.05 degree.
September 2003
