Investments That Work
Avondale Mills’ ongoing capital investment plan positions the company for low-cost delivery and
high-quality production. With a rich history of investment, acquisition, and focus on
quality, Avondale Mills is no stranger to innovation. A closer look at the companys technical
history reveals a well-honed strategy of plant and equipment upgrades, always positioning the
company for low-cost delivery of high-quality products.Since the acquisition of the Graniteville
Company in 1996, Avondale has invested more than $300 million in capital equipment. In 2000 alone,
more than $115 million was invested by this privately held firm. How does a private firm with
more than 5,600 associates, 20 plants and sales in excess of $600 million stay on course In
Avondale Mills Chairman G. Stephen Felkers words: More than 100 years ago, the visionaries who
formed Monroe Cotton Mills incorporated into their creed some fundamental precepts of doing
business, goals that we adhere to today.

Avondale’s Gregg Finishing Plant uses the latest computer technology to monitor its dye and
resin ranges. According to Felker, these fundamental precepts include:producing a product that
meets the needs of customers;ensuring a safe working environment for associates;taking pride in
manufacturing quality products;delivering on time; andpaying scrupulous attention to costs so that
a reasonable profit can be made.Weve made investments in good times and bad. Our dedication to
keeping Avondale modern and competitive is absolute, Felker continued. By reinvesting in Avondale,
weve equipped ourselves with the tools to fight not only domestic competitors, but imports from
low-wage countries as well.With an ongoing capital investment plan and plants that span spinning,
weaving, dyeing and finishing, Avondale Mills offered
Textile World a peek inside some of its most recent plant modernization
projects. Horse Creek PlantThe Horse Creek Plant, Graniteville, S.C., is a sound example from
Avondales acquisition and modernization history
(See Full Steam Ahead, TI, May 2001). As part of the 1996 Graniteville purchase, the plant
became the focus for consolidating Granitevilles weaving from other facilities, as well as a
platform for continued expansion as a world-class denim operation.With help from Suitt
Construction, additional space was added to make room for 240 Picanol Omni air-jet weaving
machines. These machines are fed by two computer-integrated Morrison indigo warp-dyeing ranges and
18 beaming machines, the most recent purchased from McCoy-Ellison. Hubtex beam-handling equipment
facilitates moving product, while West Point FoundryandMachine Co. provided four
computer-controlled slashers that deliver high-quality warps to the weave room. 

With quality at the heart of the weaving operation, the Picanol Omnis feature Alexander
Machinerys (ALEXCO) off-loom take-ups. As well, four Ingersoll-Rand air compressors were essential
additions to the air-jet installation. Pneumafils filtration systems and Luwa Bahnson/Parks Cramer
traveling cleaner systems ensure the proper weaving environment.Horse Creek was the first new
facility built by Avondale in some time. According to the company, the project was on a tight
timeline, but the efforts of Suitt Construction, Pneumafil, Picanol and the Avondale Engineering
Group kept the project on schedule so that it finished on time and within budget.It was an amazing
process to see the bare ground become a modern weaving mill in a matter of months, said Tim
Stansell, vice president, Manufacturing Services. Coosa’s Linked UpgradesAvondale Mills Coosa
Plant, Rockford, Ala., is the companys first linked spinning operation. Specializing in carded
yarns for its sales yarn business and weaving operations, Coosa features Crosrol bale opening and
cleaning equipment, which leads to eight new Marzoli roving frames and 23 Marzoli ring-spinning
frames. Schlafhorst placed 12 winders, and most recently, seven Savio Orion I winders have been
added. Filtration systems by Roy L. Hartness keep Coosas environment contamination-free.Mark
Tapley, executive vice president, Western Operations, said, The upgrade at Coosa spearheaded our
entry into linked ring yarn production. The improvements we realized in quality and costs
buttressed our effort to be the leader in the yarn markets. They also not only reinforced our
determination to expand in carded yarns, but also convinced us to proceed with a linked yarn
approach in combed cotton sales yarns. Alexander City

May 2000 brought the announcement that Avondale would invest $32 million in the conversion of
a portion of Bevelle Plant, Alexander City, Ala., to form Alexander City Plant. Bevelle continues
to produce high-quality denim fabrics, and the newly minted Alexander City Plant has been
fine-tuned to produce combed cotton yarns for the knitted apparel industry.Rieter, Marzoli and
Savio are at the center of the investment. There are two Rieter opening lines and 24 Rieter C51
cards with integrated grinding and Advanced Blowroom Control (ABC). Tateishi sliver cans feed eight
Rieter SB-D 10 drawframes for pre-drawing, monitored by Rieters SPIDER web system.Twenty Rieter E72
combers and eight RSB-D 30 finish draw frames with sliver guard utilize the UNIlap E32 transport
system to feed eight Marzoli FT 1-D roving frames with auto doffing. A roving transport system from
U.T.I.T. delivers roving to 25 Marzoli RST 1 ring-spinning frames that have a total of 32,400
spindles. Auto creeling of roving, automatic bobbin doffing and linked winding maximize
efficiencies. Savio winding systems take the form of 12 30-position and 13 38-position Orion I
winders with Uster Quantum Clearers to maximize yarn and package quality. The Orion I winders with
twin splicing produce quality yarn packages with strong splices, said Tapley.The yarn we are able
to produce at Alexander City has defined a new level of quality in the combed-cotton sales yarn
market. The level of technology achieved at Alexander City is the highest that is available with
current machinery, said Wayne Spraggins, corporate vice president and president, Manufacturing
Operations. Swint And TownsendThe Swint and Townsend Plants, both in Graniteville, provide the
spinning and weaving operations for Avondales sportswear and utilitywear fabrics. New machinery
complements and adds value to existing equipment that was kept after recent upgrades at the
plants.Swint, after a two-phase construction project, now weaves sportswear and utilitywear fabrics
using 110 Picanol Omni air-jets and 72 Omni Plus air-jets, in addition to the existing 101 Nissan
weaving machines. Townsends 80 Picanol Omnis round out the plants loom installation, which includes
49 Tsudakomas and 47 Nissans. Todo warp-tying equipment is used in both locations.Townsend houses a
new, modern linked ring spinning department, which includes nine Zinser roving frames, 27 Zinser
ring-spinning frames and 27 Schlafhorst winders. The department makes yarns ranging from 6/1 to
20/1 in size and, according to Avondale, the increased capacity is producing a stronger yarn for
optimum weaving performance.The capital investments at Swint and Townsend have enabled them to make
a better product at a lower cost, said Bo Bonner, executive vice president, Eastern Operations. In
fact, half the spinning production from Townsend is used to supplement the increased weaving
capacity at Swint. From start to finish, these mills are making a better-quality yarn, which, in
turn, makes a higher-quality fabric, Bonner added. Gregg Plant: Reinvestment In FinishingOur
investment in Gregg Plant supports our strategy of building a piece-dye, sportswear and utilitywear
unit in Graniteville. Swint, Townsend and Gregg Plants give us the flexibility and quality we need
to succeed in todays marketplace, explained Keith Hull, corporate vice president and president,
Marketing and Sales.Greggs modernization represents more than $30 million in Avondale reinvestment.
Central to the operation is a new 300-foot-long, high-speed dye range from Kusters that was
installed in 1998. The range features full monitoring and control by ABB, and dyes fabric at the
rate of 150 yards per minute.With a wash range and sanforizers supplied by Morrison Textile
Machinery, the finishing operation is rounded out with six sueders from Lafer. Despite Greggs huge
capacity, a wide array of finishes and surface treatments, and an infinite color spectrum are
available to our customers. Flexibility is a requirement of a full-service company like Avondale,
said Tony Royster, vice president, Dyeing.Krantz inspection tables and 10 EVS fabric-inspection
systems provide the tools necessary to ensure that quality is delivered in every yard. To earn the
large orders necessary to sustain the high volumes demanded by an operation such as Gregg, we must
deliver quality greater than that of our competitors, and deliver it on time, Hull said. The
knowledge of this requirement drives our management approach to machinery selection, plant
staffing, scheduling and quality control. Consider The WholePlant modernization and equipment
selection is just part of the story at Avondale. Talented and motivated associates make our
investments work; without qualification, these people are Avondales greatest asset, said Felker. We
rely on our machinery suppliers to provide us with leading-edge technology. As it evolves, we will
embrace this technology to enhance our competitiveness in terms of quality, cost and customer
service. It is not enough simply to buy new machinery; investment in technology must be justified
by improvements that are realized in the workplace and in our product and service. We will continue
to make every effort to ensure not only that we have the finest technology, but also obtain the
benefit from it.With a successful track record of more than 150 years, it would be easy for
Avondale to become trapped by the weight of its own history. On the contrary, Avondale Mills builds
on the past with a strong sense of its customers needs and its committed associates, seemingly
always ready to invest strategically to remain competitive and stay on course.

June 2002

DuPont TextilesandInteriors ToReduce Global WorkforceIn an effort to become a more competitive,
integrated organization, DuPont TextilesandInteriors (DTI) plans to reduce its global workforce by
more than 2,000 employees. Ten percent of Wilmington, Del.-based DTIs workforce will be terminated,
with more than two-thirds in manufacturing facilities and offices in the United States, and the
rest in Europe.DTI has manufacturing facilities in 50 countries, with an annual revenue of $6.5
billion, and, according to the company is the worlds largest integrated textile fiber and interiors
business.These are difficult but necessary actions to position DTI for success in a highly
competitive and rapidly consolidating industry, said Richard R. Goodmanson, executive vice
president and COO.We must act quickly and decisively to match our resources with current market
realities. We are committed to doing what it takes to capture market opportunities while serving
our customers with speed and flexibility, he said.More than half of the affected employees will
leave DuPont by July 31.As part of the restructuring, the Terathane® PTMEG manufacturing plant in
Niagara Falls, N.Y., and less competitive portions of spandex operations in Waynesboro, Va., will
be closed.DuPont expects to achieve annual pre-tax cost savings nearing $120 million as a result of
these restructurings realizing 30 percent in 2002 and 100 percent in 2003. The company expects to
take a one-time second-quarter charge of 12 to 16 cents per share. The company projects two-thirds
will be attributed to employee separation costs and one-third to asset shutdowns. The actual
one-time charge to earnings will be available at the end of the second quarter 2002.
June 2002

ACIMIT
Textile World Special Report Future Focus
ACIMIT targets developing markets to ensure growth in 2002. T he Italian textile
machinery sector, represented by the Milan-based Italian Association of Textile Machinery Producers
(ACIMIT), experienced limited production and export growth in 2001. Sector trends were affected
last year by economic downturns such as those in the United States and the European Union (EU),
according to ACIMIT. Other important markets, such as Turkey, also were hit hard. Last year
experienced only a 5-percent growth in both production and exports over 2000 levels.

 The most requested Italian textile machines in 2001 were spinning machines, which
accounted for 25 percent of all textile machinery. Finishing machines represented 24 percent, and
weaving machines accounted for 22 percent.The current year is showing signs of recovery, leading to
expectations of more sustained growth than was seen in 2001. This could be due to the parallel
recovery of international economies such as those of the United States and the EU.In an effort to
ensure that 2002 is a year of growth and profit, Italian textile machinery producers are continuing
to focus on Asia. ACIMIT already has launched a Chinese version of its website in an effort to aid
Italian companies in reaching this important market. Other developing markets, such as Eastern
Europe and Central America, also are areas of focus. The North American and other European markets
also will receive attention.ACIMIT plans to collaborate in 2002 with the Italian Institute of
Foreign Trade (ICE) in an effort to support internationalization activities within its member
companies.Other ACIMIT initiatives for 2002 include involvement in sector trade fairs, including
CITME in Beijing and Saigontex in Saigon. Technological seminars in Central America and North
Africa, as well as training courses for textile operators in Italy and abroad, also will take
place.
June 2002

Commitment To Quality From Avondales various beginnings more than a century ago to the
present, a commitment to quality has guided the company. Quality is achieved by using the finest
raw materials, machinery and equipment, and keeps customer satisfaction at a high level.Early on,
the company involved its associates in a proactive implementation of quality assurance. The Zero
Defects Program, introduced in 1966, encouraged the associates to suggest ways to improve quality,
safety, customer service, maintenance and efficiency.Quality control is vital as Avondale
modernizes operations in each of its mills. Keeping up with the latest developments in
quality-monitoring technology, the company is using state-of-the-art equipment in every phase of
its manufacturing processes.  24/7 On-Line MonitoringRecent upgrades at Alexander City, Coosa
and Pell City include the latest Uster quality-monitoring software and equipment to provide a
comprehensive real time picture of the entire operation. Twenty-four hour quality monitoring allows
us to know what goes on at all points of yarn manufacturing, said Josh Morton, quality assurance
manager, Alexander City Yarns. Whereas before we were checking random samples daily, now we are
able to check samples every second of the day. At Alexander City, Usters Sliver Expert
monitors the carding process. Ring Expert, installed on the spinning frames to monitor production
and efficiency, records the number of ends down and pounds produced. Cone Expert and Quantum
Clearer at each winding position ensure final yarn package quality, detecting and cutting out
foreign matter, unevenness or hairiness in the yarn prior to winding.Finally, physical testing in
the lab is accomplished using Usters Lab Expert. The system includes UT4 to test for evenness,
Tenso Jet to test for strength and elongation, and the AFIS fiber information system.

At Alexander City, 12 30-position and 13 38-position Savio Orion 1 winders accomodate various
yarn counts. The Cone Expert system examines every winding position with Quantum Clearer monitoring
devices to ensure the highest quality. Coosa Plant also is using the Ring Expert and Cone
Expert systems, and Pell City is using Cone Expert in its winding operation.Usters Rotor Expert
system is installed at Tifton. Walhalla and Burnsville have added newquality-monitoring technology
to existing equipment. Improved monitoring in Avondales spinning operations helps detect
misperforming spindles and rotors and correct all problems before shipping of the final product. As
the company quips, One bad rotor can make a lot of bad yarn.Avondale says improved yarn quality has
led to dramatic improvements in fabric quality. Investments in greige mill quality have brought
point counts to an all-time low, and improved yarn strength has helped bring weaving efficiencies
to the highest levels ever.Investments at Gregg Plant are yielding consistently higher volumes of
first-quality fabric. Bigger barrels on A frames have reduced creases. Dye ranges are equipped to
reduce the amount of lint, thereby reducing spots on finished fabric. In the cloth room, cameras
mounted on machinery film every inch of fabric for on-line viewing and assignment of point
values.As Avondale pursues its commitment to invest in the most advanced machinery and equipment to
ensure quality in the manufacturing process, it is honing its competitive edge to succeed into the
next century and beyond.
June 2002

Textile state senators have added key elements of the domestic industrys trade agenda to
legislation granting President Bush expanded trade negotiating authority. The amendments to the
Trade Promotion Authority Act (TPA) would require other nations to open their markets to textile
and apparel exports and also to protect United States anti-dumping laws, which the textile industry
frequently has used to combat unfair trade practices.An amendment sponsored by Sen. John Edwards
(D-N.C.) would write into law the negotiating objectives of the domestic industry in connection
with the current World Trade Organization (WTO) trade liberalization talks and any other bi-lateral
trade agreements. The Edwards amendment states the “Principal negotiating objectives of the United
States, with respect to trade in textile and apparel articles, is to obtain competitive opportunity
for United States exports of textiles and apparel in foreign markets.” To accomplish this, the
amendment would require other nations to reduce their tariff levels to the same or lower levels as
the U.S. by a certain date and eliminate non-tariff barriers to trade in textiles and apparel. The
amendment, co-sponsored by Senators Max Cleland (D-Ga.), Zell Miller (D-Ga.), George Allen (R-Va.),
Blanche Lincoln (D-Ark.) and Jesse Helms (R-N.C), was approved by a substantial margin of 66 to 33.
Van May, president, American Textile Manufacturers Institute (ATMI), praised the senate action. ”
The senate recognizes that fairness must be a key objective in textile trade negotiations, and by
adopting the Edwards Amendment, the senate has served notice that the U.S. textile industry is not
to be given away in future trade talks,” he said. In a related development, the senate adopted
another amendment that would exempt U.S. anti-dumping, countervailing duty and other trade remedy
laws from the so called “fast track” procedure whereby trade agreements cannot be amended by
Congress. The amended version of the TPA bill provides that if any trade agreement negotiated under
fast track procedures includes changes to U.S. trade laws, the proposed changes would be subject to
regular congressional procedures, including full debate and amendment. That amendment was a major
setback for the Bush administration and importers who believe it undercuts their ability to
negotiate trade agreements.The senate is expected to pass the final version of the bill by its
Memorial Day recess starting May 24, and the bill would then have to be reconciled with an already
approved House version of Trade Promotion Authority.