Increased Security May Restore Consumer Confidence


Terror Attacks Contribute To Economic Woes

The latest economic reports indicate a faltering U.S. economy that slid into recession in the
third quarter of this year. The unprecedented, vicious terrorist attacks on September 11
accelerated the downfall, as consumer anxiety rose and normal spending patterns were disrupted.
With increased security, consumer confidence is likely to be restored in the near future, and the
economy will rebound. Nonetheless, a recession is now unavoidable as consumer spending weakens
further due to widespread employment losses and the slashing of business capital spending budgets
continues.

In September, the U.S. economy lost 199,000 non-farm jobs, the largest decline since February
1991. The loss included 93,000 factory jobs. September 11 events had minimal impact on employment
counts due to timing and the underlying assumptions. The impact on payrolls will be more evident in
October’s results. The September jobless rate was unchanged at 4.9 percent.

The Producer Price Index for finished goods rose 0.4 percent in September. Energy prices
jumped 0.9 percent, while food prices rose 0.2 percent. Excluding food and energy, the price index
was up 0.3 percent.

Consumer prices increased 0.4 percent in August, largely driven by apparel and energy costs.
Energy costs soared 2.6 percent. The core inflation rose 0.2 percent.

bfgraph_1150


Trade Deficit Narrows

The U.S. trade deficit of goods and services narrowed in August to $27.11 billion from $29.17
billion in July and was the lowest level in 19 months. Exports — led by industrial supplies;
automotive products; and food, feeds and beverages — rose by 1.0 percent to $84.46 billion. Imports
declined 1.1 percent to $111.57 billion. Industrial production fell 1.0 percent in September. This
was the 12th consecutive monthly decline. Factory output fell 1.1 percent.

In the third quarter, industrial output plunged 6.2 percent at an annual rate, on top of
declines of 4.4 percent in the second quarter and 6.8 percent in the first quarter. Output fell
across all industries except for motor vehicles and parts, and lumber and products.

The operating rate of industrial capacity dipped to 75.5 percent in September and was the
lowest since June of 1983.

Housing starts rose 1.7 percent in September to an annual rate of 1.574 million units, but
declined 7.0 percent at an annual rate in the third quarter. Single-family units rose 0.6 percent
to 1.268 million.

Business sales edged up 0.1 percent
in August, while business inventories were drawn down 0.1 percent — the smallest drop in seven
months and a positive sign. As a result, the August inventory-to-sales ratio was left intact at
1.42.


Textile Mill Jobless Rates Decline Despite Job Cuts

Textile and apparel payrolls fell 0.9 percent in September, but the volatile jobless rate for
textile mill workers eased to 7.3 percent from 8.2 percent in August.

Textile output decreased 0.9 percent in September and tumbled 14.4 percent at an annual rate
in the third quarter — off 14.5 percent from a year ago. The utilization rate for textiles dropped
to 71.0 percent of capacity.

Shipments by textile producers declined 1.5 percent in August, while inventories were reduced
by 0.5 percent, causing the inventory-to-sales ratio to move up to 1.68 from 1.66.

Retail and food services sales collapsed 2.4 percent in September, as consumers avoided the
shopping malls after the terrorist attacks, while motor vehicle sales slumped 4.6 percent.
Excluding autos, retail sales were down 2.1 percent. Sales were up 3.0 percent at gasoline
stations, 0.8 percent at health and personal care stores and 0.4 percent at food and beverage
stores. Sales fell 0.4 percent for general merchandise, 1.5 percent for furniture and home
furnishings, 2.2 percent for building materials and hardware, and 5.9 percent for apparel and
accessories.

Producer prices of textiles and apparel edged down 0.1 percent in September. Prices rebounded
0.7 percent for synthetic fibers and 0.2 percent for finished fabrics. Prices retreated 0.7 percent
for greige fabrics, 0.4 percent for processed yarns and threads, 0.3 percent for carpets and 0.2
percent for home furnishings.

November 2001

Nano-Tex Expands Technology Internationally

GREENSBORO, N.C., Nov. 5 /PRNewswire/ — Nano-Tex, LLC has expanded theapplication of its technology internationally with the licensing of MartelliLavorazioni Tessili S.p.A, one of the world’s largest laundry and garmentfinishers, and Dominican Knits, a leading producer of knit fabrics andgarments. The company has also entered into its first agreements with agentsto promote licensing arrangements in the European and Japanese markets. Marking the first application of Nano-Tex’s patented technology to sewngarments rather than fabric, Martelli, based in Italy, will utilize the NANO-PEL(TM) technology for use on cotton and cotton blend apparel treated andfinished in Europe for distribution to branded customers worldwide. Denimapparel will be the first product enhanced with the NANO-PEL technology withplans for other products in the future. Dominican Knits, based in the Dominican Republic and part of the Grupo Mcompanies, will utilize the NANO-PEL technology in the first ever applicationto knits, further highlighting the technology’s flexibility to enhance avariety of fabrics. Initial applications will be to 100% cotton circular knitshirting fabrics. The use of NANO-PEL technology adds superior repellency to fabrics thatallow water and oil spills to easily bead and roll off of fabric withoutpenetrating the fibers. The advanced performance is durable through multiplehome laundries and does not alter the fabric’s original hand as experienced bymany traditional coatings. In a further expansion of its international presence, Nano-Tex hasappointed Peter Rohr of Adhoc Consultants AG as agent on an exclusive basis tocoordinate the licensing and use of Nano-Tex’s proprietary technology for usein cotton products produced in Europe and distributed worldwide. International Textile Management Consulting will likewise coordinate on anexclusive basis the licensing and use of a broad range of Nano-Tex’stechnology in Japan with Hiro Okamoto, President, serving as primary agent. “The international expansion of this technology is extremely exciting,”said George Henderson, CEO. “The performance potential of our technology hasbroad market and worldwide appeal and we are pleased to work with theseinternational partners to expand the scope and use of this technology. “The ability to apply our technology in both fabric and garment-form andto both woven and knit fabrics opens additional possibilities for theenhancement of numerous products. Our research and development continues toprogress well with a pipeline of new innovations currently in development.The ability to alter fabrics at the molecular level to enhance performanceopens limitless opportunities.” Gruppo Martelli Lavorazioni Tessili, with over 30 years in business, isone of Europe’s leading denim garment finishing companies operating facilitiesin Bologna, Treviso, Modena and San Benedetto del Tronto in Italy as well asin Buzan, Romania. Grupo M, established in 1986, specializes in the production of textileproducts with full vertical integration including fabric manufacturing,pattern design services, cutting, sewing, finishing, printing and embroidery,labels and plastic bags. Nano-Tex, LLC (http://www.Nano-Tex.com) is an advanced materials company usingproprietary technology to create, change and improve textiles at the molecularlevel. Intelligent fabrics. Better living.(TM) Other Nano-Tex advanced-technology products include those identified by the NANO-CARE(TM) brand, whichenhances cotton fabrics with water and oil repellent and wrinkle resistantproperties and those identified by the NANO-DRY(TM) brand, which enhancessynthetic fabrics with advanced moisture control properties that providequicker drying and better comfort. This press release contains statements that are forward-looking statementswithin the meaning of applicable federal securities laws and are based uponcurrent expectations and assumptions of or relating to Burlington Industries,Inc. (NYSE: BUR) (hereinafter, the “company”), which owns 51% of the equityinterests of Nano-Tex, LLC. The statements herein are subject to a number ofrisks and uncertainties that could cause actual results to differ materiallyfrom those anticipated. Such risks and uncertainties include, among otherthings, global economic activity and the implications thereon of the attack onSeptember 11 and the U.S. government’s response thereto, the success of thecompany’s overall business strategy, the company’s relationships with itsprincipal customers and suppliers, the success of the company’s expansion inother countries, the demand for textile products, the cost and availability ofraw materials and labor, the company’s ability to finance its capitalexpansion and modernization programs, the level of the company’s indebtednessand ability to borrow and refinance, the exposure to interest ratefluctuations, governmental legislation and regulatory changes, and the long-term implications of regional trade blocs and the effect of quota phase-outand lowering of tariffs under the WTO trade regime.SOURCE Nano-Tex, LLCCopyright 2001 PR Newswire

Ciba Launches Synthetic Lubricant-Emulsifier

Cibafluid® SL Conc, is a low-foaming, combination lubricant and emulsifier developed by Ciba
Specialty Chemicals, Switzerland, for elastomeric fiber-blend fabrics. Ciba claims the new
emulsifier prevents rope marks, creases and abrasion during processing; and can reduce uneven
dyeing, fiber damage and wrinkle deformations.

November 2001

Eastex To Represent Schoeller In Northeast

Seattle-based Schoeller Textil USA Inc. has named Eastex Products, Weymouth, Mass., Northeast
territory sales representatives. The territory includes Maine, Connecticut, Massachusetts, Vermont,
New Hampshire, New York, Rhode Island, New Jersey, Ohio and Pennsylvania.Eastex represents
performance fabrics produced by mills both in the United States and abroad. The company has
established relationships with outdoor apparel manufacturers in the Northeast, as well as
throughout North America.We pride ourselves in offering new and unique performance textiles as well
as staple fabrics, said John Kimball, partner, Eastex. Partnering with Schoeller is a perfect fit
for Eastex and allows us to work with the industry leader in the stretch woven and technical
performance markets.

November 2001

New York With A French Accent

The new management organization of Yarn Fair International and CADExpo Plus, T.F.E.A. Inc.
(Textile and Fashion Expo in America), has given the show a new look. Trading on its French fashion
heritage and show organizational skills, T.F.E.A. made dramatic changes in the 2001 show.A Trend
Forum, featuring some 400 swatches of yarns and fabrics provided by exhibitors, was displayed in an
area measuring 3,000 square feet at the entrance to the show. Organized with input from Expofil,
the France-based counterpart to Yarn Fair International, the Trend Forum gave buyers a clear
direction of new colors, textures, yarns and fabrics for 2002/03 and provided yarn resource
information.We are trying to bring to the American market what we do best fashion and service,said
Philippe Pasquet, general director, Expofil. The response has been good from our American and
European exhibitors.Most exhibitors reported an increase in the number and quality of contacts.
French spinner Saint-Lin said sample orders were up 20 percent.There were close to 2,000 visitors
from 32 countries at the show. Twenty-nine percent were from Canada and 20.5 percent from Latin
America.Dan Samuelson, director of menswear, The Forstmann Company, New York City, liked the
representation of exhibitors. To compete globally in todays textile industry, you have to source
yarns from all over the world, he said. I am seeing a return to the classics in wool and worsted
yarns and luxury blends.Howard Silver, president of New York City-based Jasco Fabrics, said, Theyve
brought the flavor of Expofil to New York. Joan Beer, May Merchandising, St. Louis, liked the trend
area and general ambiance of the show. Elizabeth Amoroso, Hathaway Fabrics, Waterville, Maine, was
looking for luster without shine, something elegant, she said. Jules Lavner, Bedford Weaving Mills,
Bedford, Va., was looking for solution-dyed filament yarns for weaving. They all found new yarns to
sample. Unifi Introduces New YarnsUnifi Inc., Greensboro, N.C., introduced two new yarns at
the show, Insulyte and A.M.Y.
(See Fiber World News, TI, this issue).We will have two more polyester yarns before the
end of the year, said Unifis Kim Lewis. Merano, which is disperse-dyeable for heathered looks, and
Reflexx, which is a stretch performance yarn. It has up to 17-percent stretch through processing.
We are also working on a flame-retardant yarn.Meadowbrook Inventions Inc., Bernardsville, N.J.,
producer of Angelina® ultra-soft metallic fibers, showed its newest products 100-percent metal
aluminum, titanium, copper, carbon black and heat-bondable angelina fibers.These specialty fibers
not only have a luminescent appearance, but also have technical features, said Roberta Ruschmann,
vice president. In other words, its not only about how they look, but what they do and how they
perform. For example, Angelina aluminum fibers are thermal-regulating. They can hold body heat from
within and reflect it directly back to the body. They shield against UV radiation.On display were
alpaca/Angelina yarns from Peru Naturtex. Angelina blended with mohair, acrylic, and nylon was
shown from a variety of international resources including Edgarfil, Spain; Lineapiu, Cotonificio
Ferrari, Binicocchi and Emme Filati, Italy; Daniel Houard and Groupe Saint-Lin, France; Canadas
Ormspun; Lanas Merinos, Mexico; and Wayne Trading, China. Domestic mills include Broadnax, Kraemer,
North Carolina Spinning and Yarn Mavens.Two other new Meadowbrook products are Suede Cord, which is
sampling for knitting, weaving, embroidery and edging; and Jelly Cord, which is going into
accessories.At the Masters of Linen stand, there were soft-touch yarns blending linen with wool or
cashmere, iridescent and lustrous yarns in linen/silk or linen/nylon blends, tweedy linens, stretch
linen and chunky knits. Pauline Delli-Carpini, U.S. representative, reported there was unusual
interest in linen velvet and fabrics for the home. We had a lot of visitors from the Carolinas, she
said. Chenille Makes A ComebackJim Laney, executive vice president, marketing, of Valdese,
N.C.-based Meridian Industries Dyed Yarn Group, also noted keen interest in the home furnishings
area. Today, apparel represents only 7 percent of the companys business. Automotive and industrial
end-uses are strong. We are beginning to see a slight recovery in apparel, he said, especially from
weavers and knitters in California. Chenille is one specific yarn Laney mentioned.In April 2001,
Meridian purchased Calhoun, Ga.-based Astro Dye Works, bringing space-dyed, novelty and twisted
yarns to its stable. Today, we are a $300 million company, Laney said, and are totally debt-free.
The Belmont, N.C., and Valdese facilities have a capacity of 650 pounds of yarn per week.Richard
Flaster, SandO Industries Inc., New Hyde Park, N.Y., also mentioned a chenille comeback, especially
in the home furnishings area. Its just beginning to sell in apparel as well, he said. In apparel,
rayon is the fiber of choice. One new yarn, developed for piece-dyeing, is a polyester/rayon blend
using dyed polyester and natural rayon.Gardiner of Selkirk, a Scottish wool spinner represented by
Textron Sales USA, recently merged with Brierley Bros. Ltd., another woolen system spinner. Both
are part of Brook Group, a United Kingdom-based dyer. Gardiner is noted for bulky yarns, while
Brierley spins fine yarns.Stewart Henry, sales director, Gardiner, showed cotton chenille yarns and
Shetland wool twisted with cotton chenille. The twisted yarns are colorful and bulky. They are
selling well to the sweater industry. Lambs wool, melange and silk nep yarns are other heavy
sampling yarns. Luxury WoolsItalian spinner Zegna Baruffa has three distinct lines. The
Baruffa line has innovative, quality yarns. The B-Active line includes high-tech specialty yarns.
B-Exclusive has luxury yarns, featuring super-fine cashmere from baby goats, silk, camel hair and
baby alpaca.For Fall 2002, popular yarns in the Baruffa line include pebble and flat merino yarns
that have a textured look due to shading. Merino is sometimes blended with cashmere, mohair, alpaca
or silk. Baruffa has developed a new technology it calls Spun Air to create bulky yarns that are
ultra-soft and light. It reduces the weight of the yarns by 40 to 50 percent and gives them a rich
hand and brushed look.Spun Air is also going into the B-Active line in blends with merino/nylon.
Superwash 100-percent merino wools, which are completely machine-washable and dryable, are in the
current L.L. Bean catalog. Another new yarn is Travel Wool, which is Teflon®-coated,
crease-resistant and non-pilling.Filarc, another Italian spinner, was a first-time exhibitor at
Yarn Fair. Lorella Massola, export manager, was pleased with the contacts she made at the show.
Filarc has a basic line and a higher-priced line, Manifattura Di Biella. In the basic line, there
is a lot of merino in blends with acrylic and nylon. Twisted yarns and double-dye yarns are
popular.The specialty of Manifattura Di Biella is classic and fancy yarns of precious and natural
fibers for knitwear. Alpaca/merino yarns are selling well for menswear. There are mnge yarns with
cashmere, moulines and nubbed yarns. One new development is top-treated merino. Three yarns can be
combined, knitted and then piece-dyed in fabric or garment form. Each yarn dyes differently, giving
a novel pattern effect. Fine chenilles and bouclare other yarns that are sampling well.French
spinner Saint-Lin, represented by R&M International, also mentioned the comeback of chenille,
as well as mohair bouclarns. Many of its yarns contain Lycra®. There are merino blends, tweed
effects, space-dyed yarns and multi-colored yarns. A lot of the same looks and blends are available
in several weights. Among the most popular yarns are: Cocoon a blend of acrylic/wool/nylon/Lycra;
Forban a blend of acrylic/wool/mohair; and Lolita and Iceberg blends of acrylic/wool/nylon.Himiesa,
a Spanish company represented by Yarn Mavens, has a basic line and a fancy line. The basic line
contains fine-gauge classic yarns in acrylic fibers and blends. There are twisted yarns and a lot
of stretch. The fancy line features novelty bouclin wool/nylon/acrylic that are spun in graduated
colors, brushed merino, smooth yarns and fluffy elastic yarns.Vilarrasa of Spain, represented by
Florence Textiles, is a specialist in cotton/acrylic open-end yarns for circular knitting.
High-bulk acrylic yarns and cotton/acrylic twisted with polyester or nylon metallic yarns are some
of the novelties. One popular yarn is a cotton/linen/viscose blend. Indigo yarns are selling for
flat and circular knitting. Techno Yarns From GermanyThere was a large contingent of German
spinners. Kock Spinnerei opened an office in New York City Spinnkock USA earlier this year. The
company specializes in technical yarns for industrial textiles, advanced clothing, transportation
and home fabrics. High-flame-retardant yarns spun with Trevira CS are selling to specialty apparel
areas such as clothing for fire fighters and race car drivers. Nomex®, Kevlar® and Outlast® are
other high-tech yarns in this line.Schoeller showed cotton staple ring-spun, open-end and core-spun
yarns. Most of its yarns go into woven sportswear, knitted underwear and T-shirts or rugs. Some are
blended with Modal® or elastane. There are core-spun yarns of high-tenacity filament polyester
covered with cotton.Schlafhorst, Germany, a member of the Saurer Group, provided information on
services offered and information about its Belcoro quality standards program. Yarns and fabrics
that have been successfully tested receive the Belcoro certification. Separate tests are conducted
for cotton, synthetic and blended yarns; and for knitting and weaving yarns. Fabric testing is done
according to product category.Schlafhorsts yarn and fabric research and development program is
conducted in cooperation with Lenzing. Generally, it is conducted on an individual basis with each
customer.CNS, a Montreal-based spinner represented by Yarn Mavens, produces cotton and blended
yarns for knitting, hosiery and sweaters. Recently, the company added weaving yarns to its product
mix. Inexpensive novelty yarns are developed on an exclusive basis with each customer. Boucl44;
crepe and fancy twisted yarns are in demand.Ronile, Rocky Mount, Va., an integrated manufacturer of
space-dyed and polypropylene yarns, sells to both knitting and weaving trades. Its yarns go into
fabrics for apparel, crafts and the home. The contract carpet market forms its core business.
Ronile is selling chenille in the United States for both apparel and home fabrics.Novelty yarns in
rayon and blends are the focus at New York City-based Globus Mercantile Co. Inc. Ronald Osborne
noted that Tencel®, Modal and MicroModal® are currently selling very well. Siro core-spun yarns of
rayon/Lycra are another best seller. Siro spun yarns have the look of filament yarns with low pill.
Currently they are selling to Liz Claiborne and Adidas. Silky, fine yarns; high-twist crepe yarns
and heathers were mentioned. Recycled Cotton WasteJimtex Yarns announced that its new plant,
opening this fall in Lincolnton, Ga., will have twice the capacity of the Woodruff, S.C., facility,
which was destroyed by fire last March
(See News, TI, this issue). The company spins coarse-count, open-end singles and plied
yarns from recycled and pre-dyed fiber. Yarns are bleached, solid, tweeded or heathered. Major
apparel end-uses include sweaters and socks. Right now, we are looking for textile waste, said
Stefanie Zeldin. There is an increasing demand for our product.

Jimtex is the only U.S. manufacturer exclusively dedicated to producing recycled, open-end,
cotton-blend yarns for apparel, upholstery and crafts.

Sylvie Tastemain, fashion director for Expofil, presented color, yarn and fabric trends for
Spring/Summer 2003 that will be shown in December at Expofil in Paris. Her overall theme is
NatureandArtifacts. What is natural and what is artificial are becoming blurred, she said. Natural
is taking on a synthetic look, artificial is feeling more natural.Colors with a natural ambiance
warm neutrals, green shades and vegetable tones are mixed or contrasted with intense brights.
Tastemain mentioned fabrics and treatments that have a dry hand or a wet look. There are ribs,
weathered finishes and polished surfaces. Ethnic contrasts with classic, sophisticated with rustic.

November 2001

Carlos Moore Speaks To Atlanta Textile Club

Carlos Moore Speaks To Atlanta Textile ClubThe serious ills afflicting the U.S. textile industry over the past several years can be traced specifically to the Asian financial crisis better known as the Asian Flu that began in 1997, Carlos Moore, executive vice president of the American Textile Manufacturers Institute (ATMI), told a meeting of the Atlanta Textile Club in late September.The U.S. textile industry, after showing signs of increased profits and production into the late 1990s, has suffered mightily since 1998.From 1992 through 1997, textile mill shipments hit new records every year, culminating in a still-record $83.9 billion in 1997. As the industry emerged from the downturn of the early 1990s, textile corporate profits hit a record $2.1 billion in 1992 and remained strong through 1998, Moore said.The devaluation of Asian currencies in 1997-98 and the resulting collapse of demand in Asia have combined to drive prices for Asian textile and apparel products to artificially low levels, Moore continued. This has caused a flood of low-priced Asian imports into the U.S. market. Consequently, textile imports from Asia have increased 80 percent since 1996. A strong U.S. dollar policy has contributed to an unprecedented three-year period of deflationary price cuts for U.S. textile products.Additionally, he said, the terrorist attacks of September 11 and the resulting economic uncertainty have cast a further cloud of apprehension about the immediate future.This is a test of survival for our industry, he said, but there are things we can do.First of all, U.S. textile companies should take advantage of opportunities presented by the North American Free Trade Agreement (NAFTA) and the Caribbean Basin Initiative (CBI), Moore said. In addition, dyeing and finishing of products need to continue in the United States, although CBI legislation is still unclear about that issue.As well, the U.S. government needs to make federal loan guarantees available as has been done with other industries. And, finally, Moore said the industry must do its best to ensure the government does the industry no further harm through its trade negotiations and policy making.By Jim Phillips, Executive EditorNovember 2001

Nylstar Opens North American Nylon Production Facility

Italy-based Nylstar has opened a state-of-the-art, $50-million production facility in Martinsville,
Va.The new plant can produce up to 50 million pounds per year of 15- to 200-denier nylon yarns.
Nylstar will manufacture many of its specialty Meryl® brand fully-oriented (FOY) and
partially-oriented yarns (POY) at the site
(See Quality Fabric Of The Month, TI, May 2001).Brand-new texturing and spinning machinery
for the plant was supplied by Germany-based Barmag AG. Nylstar sent 47 supervisors and line workers
to its French, Spanish and Italian locations to train on similar types of machines.At peak
operation, the 300,000-square-foot plant will employ 250 workers and operate 24 hours a day, seven
days a week.From having the most modern Barmag machines available, to training employees overseas,
to being CBI- and NAFTA-compliant, we set out for this plant to do one thing, and that is to
demonstrate to fabric and apparel manufacturers in the United States, Canada and Mexico that we are
committed to nylon in North America. In other words, were committed to their business like no other
yarn producer in the world, said Dina Dunn, vice president of marketing for Nylstars North American
operations, Greensboro, N.C.

November 2001

Berkshire Hathaway To Acquire Fruit Of The Loom39 S Apparel Business

CHICAGO and OMAHA, Neb., Nov. 1 /PRNewswire/ — Fruit of the Loom, Ltd.(OTC Bulletin Board: FTLAQ), Fruit of the Loom, Inc. (collectively the”Company”) and Berkshire Hathaway Inc. (brK.A, brK.B) announced that they andcertain of their respective subsidiaries have executed a definitive agreementtoday (the “Purchase Agreement”) for New FOL Inc., a Berkshire subsidiary, toacquire substantially all of the Company’s basic apparel business operationsat a purchase price of $835 million in cash, subject to adjustments. Thepurchase price is subject to significant reduction for certain liabilities aswell as adjustment upward or downward depending on working capital levels.New FOL will assume the ordinary course post-petition liabilities and certainspecified pre-petition liabilities of the business. Warren E. Buffett, Chairman of Berkshire Hathaway, said, “We’ve agreed tobuy Fruit of the Loom for two major reasons: the strength of the brand andthe managerial talent of John Holland.” John B. Holland, Chief Operating Officer of Fruit of the Loom, said,”Fruit is excited to become part of the Berkshire Hathaway family ofcompanies. Berkshire’s acquisition will complete the Company’s tremendousoperational turnaround and pave the way for emergence from Chapter 11.” The Company is currently operating as a debtor-in-possession pursuant toits Chapter 11 bankruptcy filing currently pending before the United StatesBankruptcy Court for the District of Delaware (the “Bankruptcy Court”). Ascontemplated by the Purchase Agreement, the Company will seek approval of theBankruptcy Court to conduct an auction whereby higher and better offers topurchase the business may be considered. The closing under the PurchaseAgreement will be effectuated pursuant to an amendment to, and confirmationof, the Company’s Joint Plan of Reorganization and is subject to completion ofthe auction, and other conditions set forth in the Purchase Agreement. Theproceeds from the sale will be distributed to creditors pursuant to theCompany’s plan of reorganization and under the oversight and procedures of theBankruptcy Court. The Company’s decision to enter into the Purchase Agreement is supportedby the Unofficial Secured Bank Steering Committee, the Steering Committee ofthe Informal Committee of Senior Secured Noteholders, and the OfficialCommittee of Unsecured Creditors of the Company. Fruit of the Loom and Berkshire presently expect the closing to occur inthe first quarter of 2002.SOURCE Fruit of the Loom, Ltd. and Berkshire Hathaway Inc.Copyright © 1996-2001 PR Newswire Association Inc.

India Aims At Global Role In Textiles

INDIA AIMS AT GLOBAL ROLE IN TEXTILESWith the ambitious theme Roadmap to Global Supremacy, the Textile Association of India is staging its 57th annual textile conference in the city of Chandigarh on Nov. 24-25. The venue is at the heart of the Northern Indian textile industry.Conference organizer Dr. Sanjay Gupta, of the National Institute of Fashion Technology in New Delhi, said the event would focus on the Indian industrys strengths — including its vast fiber base, abundant and low-cost skilled labor force, large and diversified textile infrastructure, huge (and growing) domestic market, and manufacturing flexibility.But among competitive weaknesses also being pinpointed were the “considerable lag in production technology,” slow pace of modernization, shortage of capital, lack of indigenous research and development, low productivity, inadequate training, and over dependence on cotton. “The elimination of quotas by Jan. 1, 2005, is further likely to generate intense worldwide competition, both in India and abroad,” Dr Gupta says. “An integrated strategy to increase the competitive strengths and remove the competitive weaknesses is an essential part, therefore, of any game plan to attain global supremacy.”November 2001

Rolling Out The Red Carpet

Rolling Out The Red Carpet
Carpet capital hosts three-day event presenting the latest in floor-covering
technologies.
 This years Carpet Technology Show® began its three-day market in Dalton,
Ga., on September 11. Devastated by the events of that day, the show continued as best it could
with the business at hand. Vendors displayed and promoted their machinery, equipment, services and
supplies. Attendees saw the latest in equipment, machinery and support for their businesses. Some
of the countries represented included the United Kingdom, Canada, Australia, Belgium and Japan.The
Dalton Floor Covering Marketing Association (DFCMA) produces and promotes the Carpet Technologies
Show. Wanda Ellis, executive director, was very upbeat about this years show despite the
difficulties caused by the tragedy of September 11. Normally, we attract about 3,000+ attendees,
and we were off about one-third, partly due to the fact that many who had planned to fly in on
Tuesday couldnt get here.Global Outlook 2001, an international forum, showcased six industry
experts from Europe, Japan, South America and the United States. The forum was an undertaking of
Dalton State College (DSC). According to Marilyn M. Helms, Sesquicentennial Endowed Chair and
director of DSCs Center for Applied Business Studies, DSC is taking a more active role in the
carpet industry. Exhibitor CommentsRieter ICBT Greensboro Inc., Greensboro, N.C. Chuck Crow,
product sales manager, said the firm is primarily involved in the twisting of carpet face yarns.
Machinery sales have been slow for the past six to eight months, but there are indications that
things are picking up. Last year saw false starts, and most believe we wont see anything
significant until the first of the year but given whats happened with the tragedy, all bets are
off. He continued, saying that changes would have to be significant for him to get excited. We need
to be selling more machines, and we feel this particular show is good for us, he said. Our machines
handle both two-for-one twisting on single-end filament, spun yarns; and direct cabling for bulk
continuous filamant (BCF) yarns. This is a twisting (direct cabler or two-for-one, depending on the
application) machine, he continued. This particular type of equipment has been in operation and
part of Rieter ICBTs product lines for five or six years.Zima Corp., Spartanburg, S.C. Bill
McAndrew, vice president, sales and marketing, explained that Zima is a sales agent for several
companies, including Kusters, IMTEC and Mitter. The firm handles sales, engineering service and
spare parts for all three companies. We have project managers to handle large projects for each one
of them, and service technicians, McAndrew said.Information was available for all product lines,
with emphasis on Kusters dyeing and finishing, and the combination of its Instacolor/Instatachem
and Quick Change Dye Applicator. Rotary screen printing equipment was available from Mitter, and
shearing equipment from IMTEC. It appeared some of the biggest interest was in the new Quick Change
Fluidyer. McAndrew noted that one of these machines is installed at each of Zimas major customers
facilities, and the company is working to install others.McAndrew felt that carpet is not as
import-sensitive as other textiles. The carpet industry will hold up better, in our opinion, than
the textile industry. The nonwovens industry and paper industry are basically like carpet, down a
bit but not as bad as textiles. We feel theres a huge future in the U.S. carpet industry. The
people here are as efficient as anywhere in the whole world. Theyve got the best machinery, the
best people and best carpet made right here in Dalton, he said.NICCA U.S.A. Inc., Fountain Inn,
S.C., was exhibiting with and representing Suminoe Textile Co. Ltd., Japan. The two companies enjoy
a strong supplier/manufacturer relationship. NICCA is a chemical manufacturer in Japan and the
United States, but Suminoe has no facilities in the States. Kazu Ikebata, R and D manager for
NICCA, explained, Suminoe is our biggest customer in Japan. Satoru Tanaka, general manager,
administrative services for NICCA, added, NICCA supplies a lot of chemicals to Suminoe in Japan and
represents them in the States. Suminoe has a great cleaning system that has been used in Japan for
about 10 years, but nobody in the United States has used it yet, so we are hoping to find buyers in
Dalton. Both feel Carpet Technologies is a good market for their products, but they had hoped to
see more people.Pierret, North American Division, Spartanburg Todd Cooper, sales and marketing
manager, stated he is an optimist. The market may be down now, but Im positive the future will see
things getting back to normal. Theres not a lot of money right now, and folks are holding the purse
strings tightly. We do understand because were doing that, too. Cooper talked about the firms
CT6020 cutting machine. Our equipment is very common in this industry. We have at least 15 or 20
companies in the Dalton area using our size-reduction equipment. Most are using recycled carpet
yarn in some form or other some cutting edge-trim and so forth. We also have an in-line tool cutter
that is made for cutting edge-trim.Cooper continued, In Europe, there are more government subsidies
for recycling. Here, its more common that customers, if they cant make a profit off of it, they
dont want to deal with it. Its something that we have, and the market is developing and growing for
us. Were continuing to push our products in this industry and feel confident well continue to grow
when the economy gets back on its feet.Belmont Machinery Inc., Mount Holly, N.C. Dean Smith, Jr.,
vice president, marketing, works from Belmonts sales office in Dalton. Smith was upbeat and said he
had seen a fair number of customers. The customers weve seen have been quality people in
purchasing. We like to see everybody, but we especially need to see the guys in charge of
purchasing. With the tragic events, a fog has been cast on everything, but its not anybodys fault
and we have had some fairly good traffic and activity. Were probably spending fewer dollars for
prospects here than anywhere else in the world. So it pleases me very much to exhibit.Belmont was
showing new winding equipment, which had been introduced at the American Textile Machinery
Exhibition-International (ATME-I) 2001. According to Smith, one of the units is in operation at the
Mohawk twisting plant in Calhoun, Ga. It appears to be attracting interest. We also have a
space-dyeing line and twisting machines, but winding is our core business, he said. Belmont has
introduced an automated package-handling system. What were trying to do is eliminate or reduce
labor in a winding operation, he explained.Saurer Textile Systems, Charlotte, N.C. Ted Street,
regional sales manager, noted, We see signs of the industry picking up, and Saurer has made some
good sales in the last two weeks. Saurer was showing videos of machinery how its set up and
maintained. There was also a display of spare parts and literature, plus some new items relating to
tension and gadgets that help run specialty yarns. The firms Volkmann CarpetTwister, a machine
range for twisted and cabled carpet-yarn production, appeared to attract a lot of interest.Eltex US
Inc., Greer, S.C. Peter Titcomb, district sales manager, also feels the market seems to be picking
up. Some of the spinning mills Ive called on are busy running seven days a week, 24 hours a day.
BCF seems to be holding steady. Air entangling is a little slack but will pick up later. Eltexs
equipment line includes warping, weaving, winding and other applications. The Eltex QTV Yarn Break
Detection System reacts to a yarn break in milliseconds. The number of ends to be monitored in the
creel are automatically detected and displayed by the QTV systems central unit. The Weft Yarn
Tension Monitor has created a small revolution in weaving technology and makes it possible to
significantly increase weaving efficiency, according to Titcomb.

 Van de Wiele, Belgium Arthur Phillips, president, and Gilbert Moulin, sales manager,
discussed Van de Wieles face-to-face carpet weaving machines, which Phillips said are mainly for
area rugs but also for wall-to-wall contract carpet. Several examples of carpets and rugs woven by
customers were shown. Our collection shows a trend toward better qualities by using better yarns,
such as wool, and finer densities, which means more pile knots per square meter or per square yard,
Phillips said. Moulin added, There are better and finer designs in high-end quality. Imports are
already successful, and now the American market is going forward. Wool has been successful at Shaw
Industries and Karastan. Both have a collection of carpets in wool.Van de Wiele will complete a
range of carpet weaving machines with another Axminster weaving machine. Moulin said it is under
development and will be running sometime about the middle of next year.Mahlo America Inc.,
Spartanburg The market has been fine for us, we had good meetings, but with the tragic events,
traffic has been slow, related Alan Lavore, sales and marketing manager. The main product were
displaying this week is our PCS-10, a pattern-control system in which we can use camera-based
technology to image the surface of the carpet and look for patterns within the carpet whether they
be structural or color, he said. The system detects distortions and repeats within the actual
pattern of a material. This is important because distorted carpet or fabric loses its value as a
usable finished product and gives rise to complaints.Mahlo also had on display some process
monitors and control systems for moisture monitoring, weight measurement and exhaust
humidity.American Superba Inc., Dalton Frank Walburger, president, and John Cornelison, regional
sales manager, were on hand to talk about the companys equipment. Superba developed the ARG/M for
computerized regulation of saturated-steam, pressurized, continuous heat-setting of carpet
yarns.Were also introducing the B401, which is the narrowest winder on the market. It is an upgrade
for the B400 introduced in 1999. It will be coming out soon. Were also introducing a MF3 Frieze
unit that will be coming out within the next two months. The show has been good for us. The traffic
weve had is high-quality traffic. Were happy with that, Walburger affirmed.Americhem Inc., Concord,
N.C. Americhem is a manufacturer of custom-color masterbatch for polypropylene, polyester, nylon
fiber and fibers used in floor covering and textile applications. Americhem can produce color for
anything that is solution-dyed. According to Paul Mrzlak, sales and marketing manager, Americhem is
known as a high-performance company in terms of lightfastness and spin performance of its products.
We pretty much service the floor-covering industry, and have for 15 years. Were a custom
manufacturer, with everything being designed specifically for customers, he said.Customers are in
25 countries worldwide. Mrzlak said that despite the slow economy, he sees positive signs that
things are turning around. Of course, with the tragic events, it could change things. Our total
commitment to innovation and quality will not be diminished, no matter what, he stated.A.B. Carter
Inc., Gastonia, N.C. An unusual and interesting product was being demonstrated by A.B. Carter. Its
Sliver-Join splicer was designed specifically to improve the consistency of the sliver-splicing
process at the ring-spinning frame, resulting in fewer ends down, reduced waste and lower
maintenance cost. This very different splicing technique also requires little training, allowing
new and inexperienced employees to quickly become skilled at producing consistent, high-quality
splices. Fred Rankin, vice president, Mill Devices Co., said the splicer has demonstrated superior
performance in major carpet spinning operations.Fi-Tech Inc., Richmond, Va. Weve seen old faces and
weve seen new faces here at the show, and generally speaking, we certainly like to see both. Its a
good show for us, said Keith Wise, spare parts manager, sales and marketing. Wise was especially
promoting the firms biggest item Euro-Spares, a source for European spare parts.Fi-Tech is a
technical service company and North American representative for European equipment manufacturers.
Offices are maintained in the United Kingdom, Germany and Italy, enabling speedy pricing and
availability, and other related services. Fi-Tech identifies and locates parts; works with
currency; arranges shipments; clears customs, tariffs and duties; and receives at its warehouse in
Richmond. The company also inspects for damage in transit and a very important service bills
customers in U.S. dollars.BTSR (Best Technologies StudyandResearch), Italy BTSR was represented
well by Scott Yates, general manager, PAF Sales LLC, Greensboro. PAF is the exclusive distributor
of BTSR yarn control systems. BTSR was showing different systems for the industry on-line
tension-monitoring and on-line twist-monitoring systems, and a smart clear system.Yates said the
firm is cycle-proof when it comes to the economy. We sell when other things are down (such as
apparel), and we have staples niche-market items such as fiberglass and carpet industry items.
Others areas include medical, hosiery, tire cord and things that are not your typical textile
market items. Were very optimistic and upbeat. We intend to continue carrying our products to the
industry. Our products can be contoured into anywhere. Find a yarn strand or fabric formation, and
were there.Lawson Hemphill Sales Inc., Spartanburg Richard Doyne, Industrial Sales Division, said,
Weve had interest in our principal accounts here at the show, and we will follow-up. Our lab
equipment has been observed and favorable comments received. The firm was promoting Colortronic, an
extrusion control unit. Doyne said the Colortronic can simplify line startup and job changeovers
and reduce scrap accumulation during string-up. In co-extrusion lines, it guarantees that all
extruders will run in layer ratio control.The TYT-EW electronic yarn tester offers a user-friendly
format that channels yarn-quality data via a network to a central database, enabling rapid and
precise performance analyses by production and quality-control management. The FST 3000 force
shrinkage tester increases flexibility to capture and transfer data to a companys computer system.
Test results can be stored and retrieved easily for analysis at any time.Textube Corp., Greer C.P.
(Butch) Moss, Jr., sales manager, said he always looks forward to this particular show because a
major segment of his business is the carpet industry. On opening day, we had tragic events that
changed the overall schedule, but the traffic has still been pretty good for us, and weve seen a
lot of customers, said Moss.Textube had many products for the carpet industry spinning tubes,
twisting products, finish winder combs and others. The company carries a full product line in
plastic as well. Moss, like many others, talked about the effects of the slow economy. It has been
a slow economy, but we hear about new housing starts and the trickle-down effect, which takes a
while to get to us as a carrier. It seems the younger generation is having a preference for
hardwood flooring as opposed to carpeting. That could change too! A lot of people in this country
have carpet in their homes and just might use it an extra year or few months longer rather than
replacing it. But I do feel theres still a bright side of business.  

Freudenberg Nonwovens Group, Durham, N.C. According to Jean Skinner, marketing, the firm has
been, for a long time, incorporating post-industrial recycled content into its product up to 12
percent. This year we have the capability of adding up to 50-percent post-consumer recycled
content. Weve had a lot of customers asking for this, so weve used a lot of capital investment to
be able to incorporate that amount of recycled content into the product. And were the only backing
company in the world that can offer up to 50-percent post-consumer recycled content in the primary
backing. Freudenberg has 17 plants producing nonwovens in 12 countries worldwide.A new breakthrough
primary carpet backing has already begun to show phenomenal results, noted Skinner. This product,
Lutradur type 059, delivers improved face appearance, tighter backstitch, better pile-holding
capabilities, improved mending properties, reduced noise at tufting, and minimized bow and
skew.Currently the firm is investing $40-million to increase the capacity of its spunbond plant in
Durham. Production is scheduled to begin during the first quarter 2002. Freudenberg will be the
largest producer of polyester spunbond for its primary market segments: automotive carpet backings;
interior soft trim; carpet tile backings; and broadloom backings, according to
Skinner.International Baler Corp., Jacksonville, Fla. Jerry Wise, sales manager, talked about his
firms products. The auto-tie balers have many features and are engineered for maximum performance.
The equipment meets tough standards due to its hydraulically operated wire inserters for safer,
more dependable operation and more uniform ties; variable bale length control and automatic
tensioning control cylinders for tighter bales and ease of operation; electronic eye sensors for
trouble-free operation in the automatic start cycle; components for minimum down time, ease of
maintenance; reliability; plus much more. There are 16 Auto-Tie models.The industry in general will
pick up through 2005, and after that we should cross our fingers and hope that China wont ruin us,
Wise said. Why 2005 Because thats when all the quotas come off products coming into the states. The
carpet industry as a whole should be fine up to that point. After that, all bets are off.EPIC
Enterprises Inc., Southern Pines, N.C. Epic is a replacement parts company for the carpet industry
and fine count. Product lines shown included twisting and heat-setting. Claude Crisp, director of
sales, said Epic has been in business for 23 years. The firm handles replacement parts for Verdol
and Volkmann two-for-one and cabling equipment; replacement parts for Superba Heatset, Signal
Equipment, and Suessen Heatset; ring assembly cleaning and rebuilding; and EPI-Mark yarn and fabric
markers.Our EPI-Mark has many non-fluorescing colors and is cold-water-soluble. It does not melt,
contains no wax and easily cleans with no mess. Our EPI-Mark crayons are rapidly replacing chalk
markers for cotton, carpet, wool, worsted and man-made yarns and fabrics, Crisp said. 

Williams Sales Inc., Nashville, Tenn. This was Williams Sales first time to exhibit. Were
excited about this industry, said Dan Williams, vice president. Were showing a flex strap machine
by Felins that wraps stretch film around a roll of rug. Most have been doing this by hand, which
can cause problems such as carpel tunnel. The stretch film is held by front and rear grippers below
the bed of the machine, the product to be wrapped or banded is placed into position, and the foot
switch is depressed. When the required number of selected wraps has been made, the stretch film is
automatically cut and sealed. The procedure works especially well on smaller rugs, such as 5-by-7s,
play rugs. And, according to Williams, its a cost-saving alternative to using a rigid poly plastic
strapping-type machine. He said it usually pays for itself in less than a year. The Felins machine
is made in the United States.New Binders Group, Miamisburg, Ohio New Binders Group manufactured the
first bobbinless, portable carpet-binding machine. Most carpet-binding machines are made from
modified home sewing machines, but New Binders Durabind is a stronger and faster heavier-duty
industrial machine, according to Bruce Dellert, vice president, sales and marketing. It is designed
to increase productivity and efficiency, is economical and simple to operate, and adapts to
carpeting of all grades and backings, among other benefits. It is portable and can be taken to job
sites.Dellert stated, This is our first time at the Carpet Technologies Show, and we are somewhat
disappointed with attendance, but with the tragedy in our country, we understand many could not get
here. However, were looking forward to the next show in two years and to selling more machines. The
Durabind machine is made in Hudson, Ohio.Electric Systems Integrator, LLC (ESI), (an NSC Groupe
Company), Chattanooga, Tenn. Bill Gains, sales engineer, said the trade show has been somewhat busy
in his area, but he would like to see more participation from the carpet industry. Theyve done a
good job with the show here, but we need more support from the carpet industry, because thats what
were here for. ESI was showing an ABB600, which features Allen Bradley, Reliance, Siemens and
Yaskawa drives networked via remote 1/0 on Profibus and Device Net.According to Gains, the
simulated nonwoven line utilizes soft PLC (Programmable Logic Controller) technology based on
Wonder Ware. It has an in-touch and in-control platform, which is somewhat unique in the industry,
he noted.CYG, Santa Monica, Calif. CYG is an investment firm that handles mergers, acquisitions and
financial data. Greg Yorkison was on hand promoting one of CYGs clients, Syndesis Inc.,
manufacturers of Syndecrete®, a lightweight, hard-surface application that incorporates carpet
waste such as the latex backing and polypropylene tape. The product can be utilized for multiple
applications including floor covering, table tops, counter tops, wall panels, and bathroom
fixtures. The product can go indoors and outdoors. This is a multi faceted, very flexible product,
said Yorkison.IRO Inc., Charlotte IRO handles a full range of yarn-feeding devices and yarn-tension
controls, according to Thomas Hansen, president. The firm provides tension control for all types
and counts of yarns. By controlling tension and yarn feeding, it will increase production and
improve quality. The firm showed a full range of yarn guides, ceramic tensions and stop motions, as
well as its latest electronic yarn-tension meter and yarn-speed and rate meter.Day International
Inc., Greenville, S.C. Day International manufactures and sells rubber cots and aprons to assist
carpet manufacturers in creating top-quality carpet yarn. Day was exhibiting two brands of cots and
aprons, DAYtex® and Accotex®, to cover a wide range of applications and machinery. According to
Bill Howle, director of technical services, Day also provides top-quality rolls for Superba
machines, as well as balloon rolls and clearer covers for carpet yarn spinning machines. Another
product being shown was roll covering for tufting machinery.Day has been serving the textile and
carpet industry since 1938. Howle said he enjoyed being at the show and appreciated the opportunity
of exhibiting to an enthusiastic crowd of carpet mill personnel.

November 2001

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