Federal Reserve Lowers Interest Rates


T
he latest economic reports show a weak U.S. economy in December. The Federal Reserve,
concerned that the weakness could develop into a full-fledged recession, reduced short-term rates
by one half a point well ahead of its scheduled meeting at the end of January. With inflation at
bay, further rate cuts are likely to follow.

The nation created 105,000 new jobs in December, after adding only 59,000 jobs in November.
The goods-producing sector lost 78,000 jobs, including 62,000 factory jobs and 13,000 construction
jobs. Total non-farm payrolls in 2000 grew by 1.91 million jobs, or 1.5 percent, down from 2.2
percent in 1999.

The unemployment rate held steady at 4.0 percent in December. In 2000, the jobless rate
averaged 4.0 percent, down from 4.2 percent in 1999 — the lowest in more than three decades.

The price index for finished goods was unchanged in December. The core index, which excludes
energy and food, jumped 0.3 precent in December.

Consumer prices rose 0.2 percent in December. Energy prices were also up 0.2 percent. In
2000, energy prices shot up 14.2 percent, following a double-digit gain in 1999. The surge in
energy prices sent the cost of living up 3.4 percent from December 1999. For all of 2000, consumer
prices rose 3.4 percent, up sharply from 2.2 percent in 1999. The core inflation edged up 0.1
percent in December and increased 2.6 percent from a year ago.

 
BF_Feb_343


Industrial Output Up Despite Recent Declines

Industrial output in December declined for the third month in a row, falling 0.6 percent in
December and 0.3 percent in each of the previous two months.

Output contracted at an annual rate of 1.1 percent in the fourth quarter of 2000, the first
decline since 1991.

Production of motor vehicles and parts plunged 4.1 percent in December, after taking a
6.7-percent dive in November. Nevertheless, for all of 2000, industrial output grew 5.6 percent,
the highest increase since 1997.

The operating rate fell to 80.6 percent of capacity, down from 81.4 percent in November. This
rate was 1.5 percentage points below its 1967-1999 average.

Housing starts, at an annual rate of 1.575 million units in December, were virtually flat
from 1.570 million in November. Higher mortgage rates in 2000 forced housing activity down 4.4
percent to 1.59 million units.

Business sales fell 0.3 percent in November following a 0.5 percent loss in October.
Meanwhile, business inventories grew 0.5 percent.

The inventory-to-sales ratio inched up to 1.36 in November from 1.35 the previous month, the
highest ratio since April 1999.


Textiles Operating Rate Holds Steady; Producer Prices Show Mixed
Results

In 2000, the textiles and apparel industries did not fare well despite an overall robust U.S.
economy. Textile output was down 0.1 percent in December, after plunging 4.5 percent in November.
For all of 2000, the industry’s output declined 3.7 percent.

The operating rate for textiles held steady at 75.2 percent of capacity in December. In 2000,
the industry operated at 81.0 percent of capacity, down sharply from 83.1 percent in 1999.

Shipments by textile manufacturers fell 1.1 percent in November, and inventories were down by
0.3 percent, resulting in an inventory-to-sales ratio of 1.69.

The industry’s payrolls were slashed 1.2 percent in December. In 2000, textile employment
averaged 541.2 thousand jobs, down 3.4 percent from 1999. The unemployment rate for textile mill
workers jumped to 4.8 percent in December.

December retail sales were up 0.1 percent, and automotive sales rose 0.3 percent, while
general merchandise sales declined 0.8 percent. Total retail sales in 2000 grew 7.9 percent.
Apparel and accessory sales rebounded 0.9 percent in December. Total sales in 2000 grew 5.2
percent, after a 6.4 percent gain in 1999.

Textile and apparel producer prices edged down 0.1 percent in December. Prices rose 2.3
percent for carpets, 0.2 percent for greige fabrics and 0.1 percent for finished fabrics. Prices
were unchanged for home furnishings and synthetic fibers, but declined 0.3 percent for processed
yarns and threads.

February 2001

 

Shell Still Excited About PTT

HOUSTON, Jan. 30 /PRNewswire/ — An industry publication recently ran a story saying that Shell
Chemical Company* was not proceeding with a polytrimethylene terephthalate (PTT) project planned
for Altamira, Mexico.This is not accurate. The company is currently looking at various sites,
including Altamira tobuild a plant that would demonstrate Shell and Zimmer AG’s all-melt,continuous
PTT process. Shell’s PTT business development and investment in anew PTT plant remain an integral
part of our strategy to grow the1,3-Propanediol (PDO) business. “We are excited about the long-term
prospects for the PTT business and ourPTT proprietary continuous process technology. We see
positive signs in the industry that PTT is on its way to becoming a viable product in the
marketplace as new textile and carpet products, made from our CORTERRA**Polymers, continue to be
launched,” said Stan Park, Vice President-PDO/CORTERRA Polymers. Shell is actively discussing
various project options with others interested in PTT. * The expression ‘Shell Chemicals’ refers to
the companies of the RoyalDutch/Shell Group which are engaged in the chemical businesses. Each of
the companies which make up the Royal Dutch/Shell Group of companies is an independent entity and
has its own separate identity. ** CORTERRA is a trademark of the Royal Dutch/Shell Group of
companies.The trade designation for CORTERRA is not registered for fibers per se, but is registered
for the polymer used to make the fibers.SOURCE Shell Chemical Company Copyright 2001 PR Newswire

Ciba Launches Range Of Soft Pigment Inks

Switzerland-based Ciba Specialty Chemicals has launched a new range of soft pigment inks for
digital printing. The Ciba® Irgaphor TBI 150-850 HC highly concentrated pigment inks are designed
for piezo ink-jet printing of all textile fibers, especially polyester, cotton, and blends of
these, as well as leather. The pigments can be printed directly on all fibers without pretreatment
or aftertreatment. Following application, the inks must be fixed with dry heat for 3 to 5 minutes
at between 160 and 180°C. The printed fabric can also be treated by all hot-press and cylinder
methods for 1 minute at 210°C. The new inks are compatible with the original Ciba Irgaphor TBI
100-800 range.Ciba claims that the new dyes offer environmental advantages. One advantage is that
the inks have high fixation and need no washing off, therefore reducing water consumption and
waste-water treatment. The inks are formaldehyde-free and are also free of pigments and chemicals
that can, on reduction, release amines banned under MAK III regulations.

February 2001

Higgins Industries Introduces UV Protective Clothing

NEW YORK, Jan. 31 /PRNewswire/ — Higgins Industries Inc., announces the development of an UV Sun
Protective clothing process called “BFX.” Certified and tested by International UV Testing
Laboratories at Auburn University, this BFX process has received a50+UPF rating, the highest
International rating level available. A spokesperson for Higgins Industries has said that “before
there was fashion, clothing had a utilitarian purpose. In this new millennium the protective
quality of our clothing has become increasingly more important,particularly with the dramatic
increase of skin cancer.” It is estimated this year that in the United States, Melanoma cases will
reach 47,700 with deaths of 7,700. It is the fastest growing of all cancers,and among all
accidental deaths it has experienced the largest percentage of increase from 1986 – 1996, 22%.
Textiles treated with the BFX protection block 98%-99% of the sun’s harmful UVA and UVB rays. Tom
Higgins, of Higgins Industries, has expressed his concern about the depletion of the ozone layer
and has said, “it is a small price to pay for such an important protection. If you consider that
80% of the harmful exposure occurs during our childhood, it is really important we get an
educational message out to our youth of the importance of protecting themselves with sunscreens and
the correct clothing.”SOURCE Higgins Industries, Inc.Web Site: http://www.bfxtextiles.comCopyright
2001 PR Newswire

Thomaston Mills Announces Management Changes

THOMASTON, Ga., Feb. 15 /PRNewswire/ — Thomaston Mills, Inc.(OTC Bulletin Board: TMSTA TMSTB)
announced today that the Company’s board of directors, at a meeting earlier today, accepted the
resignations of Neil H.Hightower, President and Chief Executive Officer of the Company, George
H.Hightower, Jr., Executive Vice President and President of the Apparel Fabrics Division, and H.
Stewart Davis, Executive Vice President and President of theConsumer Products Division. The board
also elected A. William Ott as the acting President and Chief Executive Officer of the Company and
charged the Company’s Audit Committee with the search for a turnaround management firm to address
the Company’s turnaround efforts and liquidity needs. Mr. Hightower,Mr. Hightower, Jr. and Mr.
Davis continue to serve as directors of the Company. Commenting on the management changes, Neil
Hightower said, “My family isproud to have been involved with Thomaston Mills for over 100 years,
and we have seen the company succeed through good times and bad. The difficult circumstances facing
the company now are reflected in the textile industry generally, and we have every hope and
expectation that under new management the company will find new ways to compete in the future. For
Stewart, George and myself, we will continue to support the company in every way possible.” A.
William Ott, acting President, said, “Thomaston Mills is a company witha great tradition of
excellence and management integrity. I am thankful to Neil, George and Stewart for their
longstanding loyalty and contributions tothe company and look forward to their continued
involvement as directors.”Mr. Ott continued, “In an environment of new challenges for domestic
textile manufacturers, it is time for us to turn our attention to building our core competency as a
low cost provider of consumer products and apparel fabrics and expanding our customer base. We are
energetically pursuing strategic initiatives designed to strengthen our sales and further lower our
cost structure.” Thomaston Mills operates four textile plants in the Thomaston, Georgia,area with
over 1500 employees. The Company produces sheets, pillowcases andcomforters for retail customers,
and also produces textiles for the homefurnishings and piece dyed markets. FORWARD-LOOKING
STATEMENTS: Certain of the above statements contained herein constitute forward-looking statements
within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors which maycause the
actual results, performance or achievements of the Company to be materially different from any
future results, performance or achievement express or implied by such forward-looking statements.
Such factors include,among other things, business conditions, volatility of commodities
markets,ability to control operating costs, developing successful new products and maintaining
effective pricing and promotion of its products.SOURCE Thomaston Mills, Inc.Web Site:
http://www.thomastonmills.com Copyright 2001 PR Newswire

Century Of Success

. 

For a hundred years, the name Indanthren® has been synonymous with high-quality, heavy-duty
cotton fabrics with good colorfastness. The tradename Indanthren was coined for the first synthetic
vat dyes, which were discovered by Germany-based BASF in 1901. Today, it stands for a full range of
dyes with maximum fastness to light, washing and chlorine. Indanthren dyes are still the dyes of
choice for the production of modern workwear and other special articles with high
fastness. HistoryThe first official mention of Indanthren is a reference made on Jan. 17,
1901, to a new blue dye discovered by Renohn, a chemist working for BASF. The company submitted a
patent application for this product on Feb. 6, 1901. Manufacture of this dye opened up completely
new dimensions for the dyeing and printing of cellulosics. 

In 1901, BASF chemist, Renohn discovered a new blue vat dye the first to be listed as an
Indanthren. Thanks to their outstanding properties, vat dyes rapidly became established on the
market and Indanthren gained an almost unique reputation even with consumers. In the 1920s, people
looking for quality and value for money were well aware of the advantages of clothing, curtains and
towels that did not fade after repeated washing or exposure to sunlight. For decades, the
Indanthren trademark was a sign of quality. Making ProgressThe triumphal progress of vat dyes
was checked by two new trends: the rise of synthetic fibers and the development of reactive dyes
for cotton. Even so, vat dyes have remained the products of choice for particularly high-quality
dyed and printed cotton fabrics. In the wake of keen price competition in the textile sector, many
textile finishers have been given the opportunity to ward off cheaper competition by concentrating
on high-quality specialities for which consumers are prepared to pay more. Vat dyes now have a
stable market share of about 15 percent of the total market for textile dyes. Incorporating
DyStarBASF has recently transferred its textile dyes operations to Germany-based DyStar. The
integration of BASFs textile dyes operations has made DyStar the market leader in vat dyes with a
technological edge over its competitors. DyStars Ludwigshafen site is still the worlds largest
integrated production facility for this class of dyes. The current Indanthren range comprises over
40 products for textile dyeing and an equally extensive assortment for textile printing. The modern
dyes are simpler to apply than the early Indanthren products, processing costs are lower and they
have a better environmental profile. All Indanthren vat dyes are metal-free. As pigment-type
compounds they have virtually no bioavailability and thus very little impact on production
effluent. Future Prospects

These days, DyStars development work with vat dyes focuses primarily on eliminating the need
for reducing agents. A new electrochemical application process in which chemical reducing agents
are replaced by electrons in an electric current opens up promising new prospects for the future.
Following a year of laboratory tests, the first trials in customers facilities are scheduled to
take place in Indanthrens centenary year. Project Manager Dr. Wolfgang Schrott expects this
particularly environment-friendly dyeing process to give Indanthren new impetus and lead to a
revival of interest in these dyes for sportswear and fashion garments. For additional
information on DyStars development work with vat dyes, contact Karl-Heinz Michel, DyStar Corporate
Communications, at ++49 (0)69-2109-2734 or via e-mail at Michel.KarlHeinz@www.DyStar.com.

February 2001

Latest Narrow Fabrics Offerings

 Latest Narrow Fabrics Offerings
Mueller and Metag provide narrow-fabric weaving and knitting production solutions.
 Periodically, ATI provides round-ups of technology available for specific sectors of the
textile industry. In this issue, the offerings of two manufacturers of weaving and knitting
machinery for narrow fabrics are explored: Switzerland-based Jakob Mueller and Italy-based
Metag. Jakob MuellerJakob Mueller AG continues to be active in research and development in
narrow fabric production. The company has recently introduced the Muejet® MBJL2(S) label-weaving
machine for the production of woven labels with slit selvages. For narrow- fabric knitting, the
company has available the MDR® 42 electronically controlled warp-crochet knitting machine for
patterned elastic and non-elastic tapes and lace, and the Raschelina® RD3 8/420 2KLS SN for
runproof elastic and non-elastic styles. 

Muejet MBJL2(S) The MBJL2(S) 115 is the result of a continuous development of the air-jet
label-weaving machine MBJL 1/1150. The jacquard machine is directly mounted on the weaving machine,
the basic construction of which is reinforced and almost free of vibration. An air-conditioning
device blows fresh air into the weaving zone and, thus, reduces the electrostatic charge of the
warp ends. Heat, dust and steam are drawn out by a dust extractor that can be connected to a
central exhausting system. The climatic chamber, the exhaust device and the noise-protection covers
assure reliability and operator health protection. The drive elements and take-up are designed for
high efficiency and low maintenance.The optimized weft-insertion system allows the weaving of a
high number of yarn types. Due to the predefined values in the weft charts (included in the weft
control), it is not necessary to set the values manually when changing the articles to be woven. A
new valve control and main nozzle allow a higher weft speed and, thus, a higher number of
revolutions, with low air consumption.In order to reduce noise and guarantee free access and easy
handling of the machine, noise protection covers are mounted directly on the machine.The MBJL2(S)
runs from 1,000 to 1,400 revolutions per minute (rpm), depending upon the jacquard machines.
Nominal reed width is 1150 millimeters. Weave types include taffeta, satin and semi-satin.The
machine features weft accumulators for four or eight colors and enables free adjustment of weft
length, monitoring and detecting of empty running-weft cones and a feeding speed of up to 1,800
meters per minute (m/min).The machine, as well, is capable of 10 to 70 ground picks per centimeter
and features programmable correction functions for the elimination of start and stop marks in the
fabric 

MDR 42 In knitting, Mueller has available the MDR 42, which features new, patented linear
motors that can drive up to 24 weft bars. Exact stroke control allows for the elimination of empty
spaces between the single tapes.The small thread guides mounted on the weft never touch, regardless
of the type of weave, which allows the selection of any shog movement.The back weave is introduced
by patented weft feeders that catch the pre-positioned weft ends and guide them under the crochet
needles. The small comb-like feeder allows a small stroke of the crochet needles. Additionally, the
weft bars do not have to move vertically. These two factors combine for high production speeds.
Bearded needles, as well as compound needles, can be used.Another new feature of the machines is
that the weft ends are beaten up against the cloth fell by a movement of the weft feeder. This
allows the production of higher-density fabrics. The mechanically driven warp-placing bars allow
the warping of open, closed or combined stitches.The MDR 42 is driven by a direct motor with
frequency converter. Driving elements such as motor brake, creep-speed gear, transmission,
speed-variation gear pulley and V-belts, all subject to wear and tear, are no longer required. The
machine is controlled by CAN-BUS technology, supported by an industrial PC. Typical applications
include elastic and non-elastic articles, tapes for underwear, bandaging material (long throw
tapes), lace articles (multibar tapes) and womens outerwear.Raschelina RD3 8/420 2KLS SN The
Raschelina RD3 8/420 2KLS SN machines newly developed system of double warp-laying in conjunction
with the SN compound needle make it possible to produce runproof styles of varying degrees of
fineness without having to make concessions in machine speed. Besides the runproof feature, this
technology can enhance product quality and appearance, according to Mueller.To produce a runproof
style, two warp-laying bars must be available, allowing different constructions in the same sheet.
The two warp-laying bars must, therefore, be controlled independently of each other. This is
accomplished on the RD3 8/420 2KLS SN by two chain-link drums with a repeat of six.In addition to
the two warp-laying bars, the RD3 8/420 SN incorporates the following features: an electronic warp
let-off system; the tension-monitoring and control system for warp threads; a positive warp-guide
system, which, in combination with the warp let-off system, assures constant warp tension; an
electronically controlled rubber-thread feed to maintain constant tension of rubber threads; and a
controlled rubber-thread feed from the rubber sheet in order to match the thread tension accurately
to the requirements of the individual products.Typical applications include elastic and non-elastic
styles, lingerie bands, ladies outerwear, medical articles and elastane stops. MetagMetag
offers a number of loom constructions for heavy webbings and for special fabrics.The machines,
according to Metag, are engineered for strength and designed for easy access and adjustment. The
mechanical components are deliberately oversized to withstand the rigorous requirements of heavy
webs, heretofore the province of traditional shuttle looms.Principal features of the Metag
offerings include the following: Main frame in a combination of heavy-grade steel and cast iron for
stability and strength; Precision-engineered components; Heavy-duty double take-down unit, with
large-diameter, deep-knurled rollers that can let back or advance each fabric; Double-sided reed
drive for heavy beat-ups; Heald frame in solid heavy-grade aluminum; Cam-driven shedding motion
with quick-change cams. Cams are available in all lifts. A sided cam box is provided on the TX and
TXA models, which makes it possible to combine pick-repeats and/or to fit special dobby machines;
Longer shedding-levers for a higher lift;Positive (patented) WOM-4 weft-feed units, suitable for
all yarns, that are lubricated for life and can be adjusted while running; New,
wider-warp-deflector leasing bars with greater lease combination possibilities and wide
accessibility; Centralized lubrication system with gear-type oil pump; and Heavy-duty electric
motor with standard crawl-speed facility (jog) for settings and controls.Available options include:
a rear warp beam rack (back frame); fabric winder (block or spool); automatic bobbin winder;
warp-tension frame; cone-creel structure; positive warp let-off; meter counter with pre-selection;
shedding cams for all lift patterns; conversion kit from bobbin to latch-needle; conversion kit
from latch-needle to bobbin; leno device; fabric heat-setting unit with temperature control; and
rubber-splitting devices. In addition, Metag offers custom features and designs to customer
specifications.Metag looms are available in four models. They are built for weaving multiple
high-density webs in most yarns, including the usual synthetics, as well as ceramic, glass,
asbestos and aramid fibers, and natural fibers, such as cotton and jute. 

TX and TP Models The TX and TP models are particularly suitable for all heavy multi-ply webs,
according to Metag. They are provided with bobbin edge-binding that carries the spool up and down
with the catch-thread through the inserted weft yarn.The spool has a high capacity that allows long
runs between changes. It releases yarn through several tension-control units to ensure quality
edge-binding, according to Metag.A photoelectric cell monitors the amount of yarn left on the spool
and stops the loom before the yarn runs out.Potential applications include sling webbings,
freight-lashing belts, brake linings, sifter tapes, military webbings, solid woven fabrics, filters
and other industrial applications.The TX and TP looms are available for fabrics up to 320
millimeters wide.TXA Models These models have a similar range of applicability to the TX and TP
models. The primary difference, according to Metag, is in edge-binding, which, for the TXA models,
is the latch-needle system. In TXA models, a latch needle is used to pick up and knit the weft,
take a separate additional catch-thread from a cone, or combine the two operations, so that the
catch-thread is used to lock the knitting of the weft. As well, it can be used for a system that
adds one more catch-thread to the above, to double lock the weft.Latch-needle models generally
achieve higher weaving speeds than do bobbin models, according to Metag. TXA models are available
for fabrics up to 360 millimeters wide. 

trX 600 Metag recently introduced the trX 600 as a complement to the TX and TXA series
shuttleless looms. According to the company, the trX 600, like the TX series, features robust
construction and reliability, and extends Metags technology to fabrics with a working width of up
to 600 millimeters.The new machine is equipped with a 620-millimeter-wide reed for wide
constructions. It is designed to accommodate aramid, ceramic and glass technical fibers, as well as
conventional synthetic and natural yarns. Details of the trX 600 reflect its TX and TXA roots,
including an oversized take-down motion for stiff fabrics, heavy-duty reed holder, robust drive
motion and simple component construction for ease of maintenance.The list of applications for the
trX 600 includes ceramic and conventional conveyor belts, tubular filters, brake and clutch pads,
4-ply industrial fabrics and other applications having widths of up to 600 millimeters.Specific
features include: bobbin selvage binding; a heavy-duty reed holder to accommodate a reed width of
620 millimeters (approximately 24 inches); a powerful reed drive with dual action arms; a patented
cam-driven rigid rapier weft insertion; side-mounted cam box for quick pattern changes; 12
positive-motion cams with 1:8 pick repeats; extended shedding levers for maximum shed opening;
robust harness frames with dual push rods; double steel-knurled rollers take down with manual
advance/reverse motion facilities; on-the-fly weft-feed adjustment; weft-compensating lever;
heavy-duty motors with crawl (jog) facility; safe weaving geometry; easy access for routine
maintenance; limited preventative maintenance requirements; and a weaving speed of approximately
200 picks per minute.

February 2001

Evergreen Nylon Recycling Named Recycler Of The Year

 Augusta, Ga.-based Evergreen Nylon Recycling, a joint venture of Honeywell International and
DSM Chemicals North America Inc., has been named Recycler of the Year by the Plastics Recycling
Division of the Society of Plastics Engineers. The Evergreen system allows Honeywell to produce its
Infinity Forever Renewable Nylon, which is both recycled and renewable in a true closed-loop
recycling process. Since this process is a chemical renewal process, the Infinity nylon that
results is indistinguishable from virgin nylon 6 and is acceptable for all nylon applications
(See Evergreen Makes Nylon Live Forever, ATI, October 2000).The judges were very impressed
with Evergreens level of commitment to the collection and recycling of post-consumer nylon from the
waste stream, said John McAuley, chairman of the awards committee and manager of environmental
programs for Basell North America, Wilmington, Del. The sheer volume of the effort, and their
turnkey approach including an extensive effort to reclaim post-consumer carpet, certainly makes
them a worthy recipient of the Recycler of the Year award, he continued.
February 2001

Micro Services Enhances Opening-Room Control System

Micro Services Group Inc., Valley, Ala., has expanded and enhanced its opening-room control system.
The new system uses Allen Bradley Programmable Logic Controllers (PLC) for the control function and
Human Machine Interface (HMI) terminals for the systems animated, color graphical status displays.
These off the shelf products allow the company to provide reliability and expandability at a
reasonable cost.The Allen Bradley PLCs are readily available and allow Micro Services Group to
program opening-room controls for optimum efficiency and minimum downtime. One-button startup
provides an orderly sequence for improved startup. The HMI terminal displays easily interpreted
color-coded graphical machine status. Alarm conditions are quickly indicated, allowing maintenance
personnel to easily troubleshoot the system and find problems. Also included is a modem for remote
monitoring and troubleshooting.The Enhanced Graphics HMI computer can be a supervisory system for
the entire opening room and can connect to any major-brand PLC on existing controls. The messaging
feature can call, page or e-mail the appropriate person in case of an alarm.Efficiency reporting,
production calculations, data logging and report generation for specific plant needs are other
system features. The system can also be networked to other computers.

February 2001

Screenworks Joins Rutland Distribution Network

Rutland Plastic Technologies, Pineville, N.C., has added Chicago-based Screenworks Supply Corp. to
its plastisol screen inks distribution network. Screenworks Supply distributes to customers
throughout the United States and has a small presence in South America.We were impressed with
Rutlands dedication and commitment to the plastisol ink industry, said Wayne Samojla, president,
Screenworks Supply. There are other manufacturers out there, but we know that Rutland will help us
continue to grow our business with their comprehensive line of high-performance inks.

February 2001

Sponsors