Pillowtex Relaunches Cannon Brand

Pillowtex
Relaunches Cannon® BrandAfter spending more than 10 years in the shadows, Kannapolis, N.C.-based
Pillowtex Corp.s Cannon® brand of bed and bath textiles resurfaced with the introduction of a new,
updated product line during Home Fashions Week, held in late March in New York City. With
assistance from several consumer research and brand consulting firms, Pillowtex determined that
Cannon is the most recognized and most favored brand of home fashion textiles. The new product line
was developed in response to feedback from consumers and retail customers. Products are offered in
12 core colors. Four colorways including mix-and-match sheet patterns are based on four of the core
colors.With a rich heritage dating back to 1887, Cannon is an American and global icon. Consumers
equate Cannon with tradition, value, quality and honesty, said Mike Gannaway, chairman and CEO,
Pillowtex. With great pride we are relaunching the Cannon brand to offer value- and
quality-conscious consumers a time-tested and trusted product line that delivers exactly what
consumers asked for products that look and perform the way they should.
May 2003

ShanghaiTex Questions


A
 this issue goes to press in late April, the question remains whether ShanghaiTex will
open on June 2 as planned, or face rescheduling due to the threat of poor attendance related to the
Severe Acute Respiratory Syndrome (SARS) crisis. The impact of SARS on individual health, business
travel, as well as the global economy should not be dismissed.

Shanghai, at this writing, has reported two people in a city of 17 million with the
mysterious SARS virus. Francis Markus, a BBC correspondent, noted the skepticism Shanghai’s
inhabitants have as to “how China’s business hub could have so few cases while numbers have
skyrocketed elsewhere.” The World Health Organization (WHO) is currently investigating further.

In the same BBC report, WHO praised Shanghai for its efforts in controlling SARS. Dr.
Wolfgang Preiser, a member of WHO’s Shanghai team, stated, “The situation in Shanghai was nowhere
near as bad as in Beijing because the authorities had acted much faster to monitor and prevent the
disease.”

Although textile executives are generally of the intrepid sort, both attendees and exhibitors
will weigh the personal and business consequences of their actions. In the end, the decision to
attend or not may be preempted by the city of Shanghai’s actions potentially halting all
exhibitions, which will be a serious blow to the city’s economy.

Bloomberg News has reported that Shanghai is scheduled to host 182 exhibitions from late
April through the end of 2003. The Shanghai Convention Exhibition Industry Association reports the
city generates an estimated 1.8 billion yuan ($217 million) annually through exhibitions and
conferences.

Shanghai aside, the overall consequences of SARS are even more far reaching. Asian economies
are starting to deal with mounting fallout from the syndrome. The World Bank has cut its regional
economic forecast, and threat of exposure to the virus is having a chilling effect on China’s
explosive growth.

As China’s overwhelming textile and apparel exports expansion charges toward 2005, one can
only wonder to what extent SARS will impact the supply chain and the intense globalization the
industry is experiencing.

Exhibitors and attendees alike may need to reshuffle their schedules for a December show. If
so, what does this mean for ITMA 2003 in Birmingham, England?

May 2003

Blue Ketchup, Better Burgers


T
 he H.J. Heinz Co. has just introduced its Stellar Blue ketchup to the market. The company
enjoyed tremendous success with Blastin’ Green ketchup last year and feels the blue line will boost
its overall sales for 2003. Simultaneously, Jim Cantalupo, the new CEO at McDonald’s Corp.,
released the specifics of his turnaround strategy for the burger chain. In essence, the new
marketing effort will concentrate on “doing fewer things but doing them better.”

Perhaps there is a valuable lesson here for yarn manufacturers. As a number of firms are
struggling for survival, the time may be right to adapt new business models that emphasize
technology, niche markets and innovative value-added products. As one spinner said, “We are
modifying a lot of our existing equipment to enable us to make higher-value effect yarns.”

Fashion designers are looking at effect yarns as a viable way to get a more natural
appearance in knitted or woven fabrics. In fact, effect yarns are now a fashion trend from denim to
T-shirts. Devices are available to allow the conversion of existing ring spinning and open-end
equipment. Program-controlled drafting systems allow the production of slub, multicount, and
multitwist effect yarns. This type of diversification and flexibility in product may be the
industry’s version of blue ketchup and better burgers.


Recession Worries Grow

Most economists felt that the major obstacle to economic recovery was the war in Iraq. Despite
the news that Saddam Hussein’s government has toppled, Wall Street continues to stumble lower.
Analysts have already pushed back their forecasts of economic recovery to the second half of this
year. The CEO of a major textile firm said, “Investors have shifted their attention from the war to
the first-quarter earnings report.”

Gross domestic product gains declined to 1.4 percent for the fourth quarter of 2002. Many
economists are predicting little change for the first quarter of 2003. In fact, some feel the final
results may show the economy actually shrank during this period — initial signs of a slide back
into recession.

The most critical element seems to be job losses. The economy lost another 108,000 jobs in
March. The 465,000 jobs that have disappeared over the first quarter have caused the Federal
Reserve Board to put together an Emergency Economic Rescue Plan. According to Fed Chairman Alan
Greenspan, the plan may include the purchase of long-term securities in an effort to stabilize
long-term interest rates.

The Fed has indicated its willingness to lend money directly to commercial banks and has
committed to maintaining the Federal Funds Rate at levels necessary to produce a sustainable
economic recovery. In fact, the Fed has indicated that the Federal Funds Rate would be held at a
lower level over a long period if the rate is moved below the current 41-year low of 1.25 percent.
The CEO of a large textile firm reacted to the proposal by saying, “The Fed is trying to bolster
confidence. They are trying to eliminate worries about sudden jumps in long-term and short-term
rates. Hope the plan works.”


New Optimism Over Trade Issues

Grant Aldonas, under secretary of international trade administration with the US Department of
Commerce, recently announced a “ safeguard provision” for dealing with the flood of imports from
China. The safeguard — which will remain in effect until December 31, 2008 — gives the United
States the right to impose quotas on certain textile and apparel products that were previously
removed from quotas as part of China’s accession to the World Trade Organization.

The biggest impact of the new safeguard affecting yarn manufacturers will be in the area of
knit fabrics. In 2002, China surged ahead to become the fifth-largest exporter of knits to the
United States, up from a position of 26th in 2001. Overall, this is still a very small piece of the
pie, since total textile imports from China are approaching 5 billion square meters, valued in
excess of $8.7 billion. A textile executive stressed, “This should have happened sooner. Everything
going forward will be based on the current level of imports.” A good point, since China’s textile
and apparel exports rose 36.6 percent in December alone!


May 2003

Quality Fabric Of The Month: Shimmer And Strength

Pallas® Textiles, a Green Bay, Wis.-based designer and marketer of contract and residential textiles and wallcoverings, recently introduced Alloy, a panel fabric in which polyester crepe is bonded with aluminum to create an elegant, shimmering textile that also is extremely durable. Developed by Rock Hill, S.C.-based designer Michael D. Laessle, who drew on technology used originally for military applications, the fabric was the recipient earlier this year of the ADEX Platinum Award, sponsored by Design Journal, in addition to a Best of NeoCon Silver Award and an Innovation Award in the fabrics, leathers and vinyl category at NeoCon 2002.

The fabric was nearly two years in development, according to Laessle. “Timing is everything,” he said, adding that Alloy’s evolution involved considerable trial and error to perfect both the bonding and the dyeing processes for the fabric relative to its envisioned use in contract and
residential interiors.

qfom_Copy_1


Alloy is available in five metallic colors, which are coated

lightly onto the crepe fabric to give a sense of deepened texture.

“The manufacturing process is quite amazing,” said Laessle. “A 100-percent polyester crepe greige fabric is fed through a chamber heated to 1,200°F under high pressure. Aluminum rods are also fed into the chamber, where the solid metal changes to gas and permanently fuses with the fabric — hence, the name Alloy.”

Color is coated onto the fabric very lightly and adds depth to the crepe texture by settling into the interstices between warp and filling. The addition of the metal makes the fabric “ virtually indestructible,” according to Kimberly Christman, president of Pallas. It passes all
crocking, fading and flammability tests; and it also has passed the Wyzenbeek abrasion test for more than 100,000 double rubs. “The aluminum is so imbedded into the polyester fiber that it won’t rub off,” Laessle explained.

Alloy may be used in vertical applications, such as panels and demountable walls, or in selected seating applications. “Although it maintains the qualities of a fabric and sews beautifully, it does not have the stretchability of other fabrics, so as seating it works best for such uses as banquettes,” Laessle said.

As a wallcovering, he said, Alloy appears to be seamless. One facility is using Alloy in its communications center in combination with wood, which Laessle said softens the metallic, industrial aspect inherent in the fabric. Describing other vertical uses, he mentioned a hotel that is using
it for shower curtains. Its shimmering elegance and durability make this innovative fabric suitable for a variety of contract and residential uses.

May 2003

Medline DuPont Enter Marketig Relationship

Mundelein, Ill.-based Medline Industries Inc. and Wilmington, Del.-based DuPont Medical Fabrics
have entered into a marketing relationship in which DuPont will provide its spunlaced fabric for
Medlines Proxima line of disposable protective surgical apparel and products.According to the
companies, DuPonts spunlaced fabric combines the natural feel of cotton with advances in material
technology to provide a splash-resistant barrier. DuPont adds that the fabric has high drapability
and softness, which optimize wearer comfort and dexterity. Moreover, the manufacturing process uses
no binders, chemicals or adhesives, resulting in a high-purity fabric structure and minimizing the
possibility of product contamination and allergic reactions by users.Medline also will incorporate
a high-tech fabric still under development by DuPont into its Proxima line later this year.

May 2003

Geri-Care Cotton Craft Sign Business Agreement

Moonachie, N.J.-based Geri-Care Products LLC, a supplier of reusable incontinent care products, and
Atlanta-based Cotton Craft Inc., an importer of cotton institutional blankets, have entered into a
joint business agreement that, according to the companies, will allow them to offer a more diverse
product line and a higher service level to their customers.The joint business will be based in
Moonachie and will maintain offices and a showroom in Atlanta.

May 2003

Borgers To Build Alabama Plant To Supply Mercedes-Benz

Germany-based Johann Borgers GmbHandCo. KG, an automotive carpet supplier, is currently scouting a
Tuscaloosa County, Ala., site for its first US plant, reports Developing Alabama.According to the
Alabama Development Office publication, Borgers USA will build a $5 million plant that will employ
70 associates to supply the Mercedes-Benz plant in Vance, Ala., which assembles the M-Class
sport-utility vehicle and is undergoing a $600 million expansion.

May 2003

ParksandWoolson Moves South

ParksandWoolson Moves SouthSpringfield, Vt.-based ParksandWoolson Machine Co. Inc. has opened a
service and repair center in King, N.C., and plans to move its entire manufacturing operation to
that location within the next 12 months. Initially, the company will hire 10 employees and
anticipates creating a total of 30 new jobs for the region over the next three years.The
manufacturer of textile finishing and web handling equipment is making the move to North Carolina
in order to be closer to its many customers, which include Guilford Mills, National Textiles and
Burlington Industries.We are excited about bringing our company to [King] and the wonderful
opportunities available here for our business and our employees, said Al Peterson, president. Our
customers have reacted favorably to our decision, since it will allow us to service their needs in
a timely and efficient manner. We look forward to being a contributor to the community and being a
part of it.
May 2003


ParksandWoolson, which manufactures the Posi-Winder, plans to move its entire operation to
King, N.C.

Committees Approve Buy American Textile Legislation

Committees Approve Buy American Textile LegislationArmed services committees in both the House and
Senate have approved legislation continuing the “Buy American” requirement for military procurement
of textiles and apparel, but the two versions of the legislation differ significantly. The House
version maintains and broadens the requirement, while the Senate bill permits exceptions and
waivers that are opposed by US textile manufacturers. The House Armed Services Committee report
says “The ongoing war on terrorism dictates the need to have reliable domestic sources of weapons
and equipment,” and it expands the list of items the Defense Department is required to purchase
from domestic sources. Willis C. Moore III, chairman of the American Textile Manufacturers
Institute (ATMI), has written members urging them to oppose any efforts to weaken the House version
of the legislation and to oppose any weakening amendments on the floor of the House and in a
conference with the Senate.In a related development, Rep. Robin Hayes (R-NC) has introduced
legislation to establish a Buy American requirement, similar to the Defense Department measure, for
purchases made by the newly-created Department of Homeland Security. In introducing the
legislation, Hayes said “Strengthening our homeland security is something that we are all working
hard on, but there is no reason that the Department of Homeland security should not be required to
buy American goods. Both the Defense Department and Homeland Security Department measures are
designed to help maintain a strong domestic base for manufacturing textiles and apparel and reduce
dependence on foreignh manufacturers..By James A. Morrissey, Washington Correspondent
May 2003

Quaker Selects Porini Software Systems

Quaker Selects Porini Software SystemsFall River, Mass.-based Quaker Fabric Corp. has purchased the
Alphatex Loom Monitoring and TexData Jacquard Networking system from the Porini Division of
NedGraphics, the Netherlands.Quaker said it selected Alphatex to optimize production capacity
through constant monitoring and real-time feedback. TexData uses a standard Ethernet network to
send and receive digital production information, which allows for full control over production jobs
on individual jacquard looms.
May 2003

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