US And Singapore Sign Historic Trade Pact

US and Singapore Sign Historic Trade PactThe United States and Singapore have signed an historic
free trade agreement that, for the first time, will permit duty and quota-free access to the US
market for textiles and other products made in Asian nations. And, as has been the case with other
recent trade agreements, the pact does not satisfy either textile manufacturers or importers. The
importers are upset because the agreement has a yarn forward rule of origin that requires apparel
products eligible for the special treatment to be made of yarn and fabric made in the participating
countries. They say such a rule will sharply restrict their ability to do business with Singapore.
Textile manufacturers dont like the agreement because it says 25 million square meters of apparel
in the first year can be made with yarn and fabric from countries other than the US and Singapore.
Those imports, known as Tariff Preference Levels, will be reduced each year until they are phased
out in five years. Since Singapore has limited textile manufacturing capacity, the industry fears
it will become a source for illegal transshipments from other Asian nations.The agreement was
historic in another sense, in that it breaks “significant new ground,” and could become a model for
future trade agreements with other Asian nations. That sends shock waves throughout the US textile
industry. Under the agreement, Singapore agrees to eliminate all of its duties on US products
immediately and further agrees not to reimpose them. The US will phase out its duties over 10
years, with duties on the least sensitive products dropped first. The agreement still has to be
approved by Congress, but apart from some high-powered rhetoric from textile state lawmakers, it is
not likely to run into any difficulties.By James A. Morrissey, Washington Correspondent
May 2003

Material World Highlights

Material WorldThe first spring edition of Material World attracted representatives from leading
global apparel companies and private label retailers who came to explore the exhibitions
full-package, fashion information and educational resources. Among the highlights of the new spring
edition was Material World Technology Solutions, the new IT-focused event.Seminar presentation
highlights included a number of case-study sessions sponsored by SAP, New Generation Computing and
BearingPoint. Industry analyst presentations were given by Navi Radjou, senior analyst, Forrester
Research; and Andrew White, research director, Enterprise and SCM, Gartner Inc.

Marshall Gordon, industry manager, apparel and footwear, SAP America, commented, Technology
Solutions within Material World is a great fit. There has never been a time in the apparel/footwear
industry when enabling technology has been so inseparably tied to the business process it empowers
as within global sourcing. Both supply and demand have evolved in a manner in which technology is
an increasingly competitive differentiator. On the supply side, the shift from domestic
manufacturing to global sourcing requires firms to identify, monitor and evaluate a growing group
of vendors in different time zones speaking different languages. On the demand side, the
accelerating retailer requirements for replenishment and Vendor Managed Inventory are equally
challenging. The common thread solution is technology- and industry- specific solutions that speed
business processes and assist executives to see through volumes of data to the issues they need to
address.Kevin M. Burke, president and CEO, American Apparel and Footwear Association (AAFA),
sponsor of Material World, noted, We are very pleased that AAFAs alliance with Material World has
expanded the scope of the show as evidenced by the number of visitors from top name apparel and
footwear companies who attended over the course of the three days.Based on the feedback weve
received from a number of our exhibitors as well as attendees, this first-time event has filled a
void and created a strong new business resource for the industry, stated Tim von Gal, executive
vice president of marketing and development, Urban Expositions, producer and manager of Material
World.Cotton Incorporated expanded its presence at the exhibition by sponsoring three fashion trend
presentations.A special invitation-only presentation in Spanish was offered by Claudia Munoz,
fashion marketing manager, Cotton Incorporated, Mexico City, to participants and guests of Fashion
Week of the Americas. More than 50 designers from Latin America and the Caribbean showcased their
fashions at the presentation. Kathryn Gordy-Novakovic, director, COTTONWORKS® Fabric Library,
Cotton Incorporated, made the presentation in English for Material World attendees.

Left to right: Fred Isenberg, vice president; Nancy Brooks, vice president; and Alan Brooks,
president, New Generation Computing; John Windham, vice president, sourcing; and Joe McConnell,
vice president, sourcing, Kellwood; and Mark Goldberg, vice president, sourcing, Koret, a division
of KellwoodAs the cotton industry grows globally, it is our responsibility to answer the needs of
our constituents. We are excited about presenting the Spring/Summer 2004 fashion trends in both
Spanish and English, explained R. Michael Tyndall, senior director, global product marketing,
Cotton Incorporated.Several members representing the companys Global Product Marketing and Consumer
Marketing divisions were in attendance.Mike Todaro, managing director, American Apparel Producers
Network (AAPNetwork), said, Traffic in the contractors aisle, where our booth was anchored, was
what we expected. We had the chance to meet top executives from Russell, Tropical, VF Corp., Sara
Lee, Patagonia and many others. We met exciting new sourcing executives, such as the team from
UnderArmor who actually found one of our members to contact for sourcing on our Internet connection
in our booth. Clearly, [Material Worlds] work with AAPNetwork, AAFA and other organizations to
leverage all of us to get our members to the show is working. Ive been in the industry 13 years now
and was staggered at the number of familiar faces streaming by our booth. This show is drawing the
industry.

May 2003

Milliken Antimicrobial Agent Receives EPA Approval

Spartanburg-based Milliken Chemical has received approval from the Environmental Protection Agency
for its silver-based antimicrobial product, Antimicrobial AlphaSan®, for use in heating,
ventilation and air-conditioning equipment and related materials.With the new approval, AlphaSan,
which inhibits the growth of bacteria and mold, is now available for use in resin, fiber and
plastic articles for applications such as air handlers, coils, fins, insulation, rigid or flexible
ducts, filters, heat exchangers and air purifiers.In addition, AlphaSan, already used in
applications such as textiles and medical devices, has recently been added to the list of accepted
active ingredients required for biologically active textiles to receive the Oeko-Tex 100
Certification for product safety.

May 2003

PGI Emerges From Bankruptcy

PGI Emerges From BankruptcyNorth Charleston, S.C.-based nonwovens manufacturer Polymer Group Inc.
(PGI) announced its previously confirmed plan of reorganization became effective March 5. All
shares of the companys old common stock have been cancelled. New common stock has been issued, with
96 percent distributed to creditors and 4 percent to existing stockholders pro rata.PGI has reduced
its total debt to approximately $500 million upon emergence from bankruptcy, down from
approximately $1.1 billion when it entered bankruptcy proceedings.We are very pleased to have this
difficult period behind us, said Jerry Zucker, chairman, president and CEO. We have emerged as a
stronger company with a solid future ahead of us.PGI has approximately 4,000 employees and 25
manufacturing facilities worldwide.
May 2003

Shanghai Awaits The Global Textile Industry

Shanghai Awaits The Global Textile Industry
Machinery manufacturers from around the world converge in China next month for ShanghaiTex.
Read on to see what some of the companies are bringing to the show.Editor’s note: ShanghaiTex 2003
has been rescheduled for December 10-13, 2003.
 Shanghai, Chinas largest city, has enjoyed
a long, prosperous history as an industrial and financial center with a large concentration of
textile companies. This year, once again, all eyes will be on this cosmopolitan metropolis on the
banks of the Huangpu River as it readies itself for ShanghaiTex, the 10th International Exhibition
on Textile Industry. Billed as the largest show of its kind, this years event will be staged June
2-5 at the Shanghai New International Expo Centre in the Pudong industrial district.As one of the
most significant textile events in China, ShanghaiTex 2003 is supported by 14 of the countrys
provincial textile associations and organizations. According to Adsale Exhibition Services Ltd.,
one of the shows organizers, about 1,000 exhibitors from 22 countries and regions will be showing
their wares in more than 666,000 square feet of show floor space, which represents a 40-percent
increase in area compared to the 2001 show. Moreover, organizers are expecting a record-breaking
attendance of more than 110,000.

Savio will display its two-for-one twister,the GEMINIS/S, at ShanghaiTex.According to the
Italian Association of Textile Machinery Manufacturers (ACIMIT), in 2002, China exported 11 percent
(about $16 billion) of the textile products consumed globally, making it by far the worlds leading
textile exporter and producer. ACIMITs data show that Chinas installed spinning capacity has
reached 34 million short-staple and 3.6 million long-staple spindles. Such impressive production
rates, its accession to the World Trade Organization and the relatively stagnant markets in the
Western world have made China particularly attractive to machinery manufacturers around the globe.
This is evident in the increased number of international companies exhibiting at
ShanghaiTex.According to Adsale, Germany, Spain, Korea and the United States are among the
countries whose presence at the show has increased most noticeably. In addition, special country
pavilions that group companies from the same country under one unifying banner include the United
States (organized by the American Textile Machinery Association), France (organized by the French
Textile Machinery Manufacturers Association), Italy (organized by ACIMIT), Korea (organized by the
Korea Textile Machinery Association) and Taiwan (organized by the Taiwan Association of Machinery
Industry), among others.Companies exhibiting at this years ShanghaiTex include some of the biggest
names in the global textile industry representing the whole spectrum of manufacturing, from yarn
manufacturing to weaving to knitting to dyeing, printing and finishing. Based on responses to an
informal
TW survey, the following is a sampling of what some companies will be showing at the
event.Yarn ManufacturingRieter Textile Systems, Switzerland, will have several divisions
represented at the show. The Filament Yarn Technologies Business Group, a new division consisting
of the former Rieter ICBT, Rieter-Scragg and Synthetic Fiber Machinery, will be showing equipment
for processing various man-made yarns and fibers. New machinery includes the FTF 12 SDS, a
false-twist texturing machine intended for installation in large-scale polyester (PES) production
plants in the Chinese market. According to Rieter, key features include: improved flexibility that
allows manufacturers to run a wide range of materials including PES, polyamide (PA), microfibers or
polypropylene (PP) without changing heaters; use of a straight yarn path that guarantees the
processing of delicate yarns; and energy savings of up to 15 percent when compared to other
systems.Rieters Spun Yarn Systems Business Group will show a collection of equipment including
blowroom lines, cards, combers, drawframes and spinning machines.Savio Macchine Tessili S.p.A.,
Italy, will have on display a single operating ORION M automatic winding head. The ORION comes with
individually controlled motors and a flexible operating cycle. The ORION M is equipped with manual
bobbin feeding and manual packaging doffing.Savio also will show its latest two-for-one twister
GEMINIS/S 221-B with 32 spindles. The company says the GEMINIS/S offers a high production rate,
top-quality yarn, low twisting cost, reduced maintenance, low energy consumption and operating
ergonomics.Germany-based Spindelfabrik Suessen will show a range of spinning products including a
compact ring spinning system, drafting systems, open-end rotor spinning machines, and parts and
components.The EliTe®CompactSet, a modernized package of Suessens EliTe Compact Spinning System, is
available for existing ring spinning frames for short-staple and worsted spinning. According to the
company, 140,000 EliTeCompactSet spinning positions have been sold in China to date.Other products
that Suessen will show at ShanghaiTex include: the HP-A 310, HP-A 410 and HP-A 510 Top Weighting
Arms; the SC 1-M and SC 2-M Compact SpinBoxes for Autocoro SE 8 and SE 9 rotor spinning machines;
SQ SpinBoxes for Autocoro SE 7 to SE 10 rotor spinning machines; as well as spinning components and
spare parts for Autocoro SE 7 to SE 10 rotor spinning machines.Switzerland-based Saurer Textile
Group will represent its member companies, including Barmag AG, Neumag GmbHandCo. KG, Saurer
Suzhou, Saurer Hamel Ltd., W. Schlafhorst AGandCo. and Zinser Textilmaschinen.Among the equipment
to be shown is Schlafhorsts Autoconer 338 automatic winding machine, which has been specially
outfitted with a Chinese character and language menu.According to Saurer, China is one of the most
important markets for rotor spinning machines. Following the worldwide introduction at ITMA Asia in
2001, Saurer says it has installed more than 200,000 Autocoro 312 spinning positions around the
world, 50,000 of which are in China. The Autocoro 312 will once again be shown to the Chinese
market at ShanghaiTex. Following the show, the machine will be installed in the Suzhou factory for
customer trials.Trutzschler GmbH and Co. KG, Germany, will exhibit technology from its subsidiary,
Trutzschler Textile Machinery (Shanghai) Co. Ltd. It will show the High Production Card DK 903,
which has a WEBFEED system with three lickers-in a unique feature of this machine.Another DK 903 on
display will be shown with the Integrated Draw Frame (IDF), which Trutzschler says represents an
alternative to the normal drawing process because this is the first time the function of an
autoleveler draw frame is integrated in the card.In addition, other yarn-manufacturing machinery
companies that plan to exhibit at ShanghaiTex include Cognetex S.p.A., Italy, Fehrer AG, Austria,
Murata Machinery Ltd., Japan, and Sant Andrea Novara S.p.A., Italy.KnittingGermany-based
MayerandCie. will show two machines at ShanghaiTex. The Relanit 2.4 E is a fully electronic single
jacquard machine that uses the three-way technique. MayerandCie. says any pattern transferred to
the electronic system with individual needle selection at every feeder is processed within seconds
and knitted immediately. The Relanit 2.4 E to be shown has a 34-inch diameter and an E 28 gauge.

MayerandCie. will show two knitting machines at ShanghaiTex,the Relanit 2.4 E (above) and the
OVJA 1.6 Etr.The second machine to be displayed is the OVJA 1.6 Etr, an electronic double jacquard
machine with transfer and striping attachment that also uses the three-way technique. The OVJA 1.6
Etr at ShanghaiTex will feature a 30-inch diameter and an E 18 gauge.In addition, MayerandCie. will
show, in conjunction with Germany-based Merz Maschinenfabrik GmbH, the computer-controlled CC4-MED
automatic hosiery knitting machine. This four-feed high-performance circular knitting machine with
reciprocating heel device knits two-way stretch compression stockings and tights in various
compression classes, as well as antiembolism stockings and one-to-one support pantyhose with
float.Italy-based Comez S.p.A., which specializes in crochet knitting machines, will show the
CT-16B/600, a crochet machine with 16 electronically driven weft bars designed for complex lace and
flounce production. The vibration of the bars has been eliminated, making it possible to work with
as many as 16 weft bars. The machine comes in gauges of 15 and 20 needles per inch, with both 400-
and 600-millimeter (mm) working widths.Other equipment at the Comez booth will include the
Decortors 1000/EL crochet machine, the CMX needle loom and the Covertwist 2T.

Comez’s CT-16B crochet machine features 16 electronically driven weft bars.Karl Mayer
Textilmaschinenfabrik GmbH, Germany, will showcase its RJPC 4 F-NN, a raschel machine equipped with
a new piezo-jacquard system.The company says the system offers increased production output, high
operational reliability, yarn selection via the piezo-jacquard needle in conjunction with the
microprocessor control, and easy and fast pattern change.WeavingToyota Industries Corp., Japan,
will bring five weaving machines and one ring-spinning frame with compacting system to
ShanghaiTex.The company will display four sets of its JAT710, an air-jet loom whose production
began in February
(See Weaving News, TW, January 2003). The JAT710 is equipped with a new color panel that
corresponds to interactive Internet functions.

Jakob Muller’s Varitex V5Ni is builtin China and India.Narrow fabrics specialist Jakob Muller
AG, Switzerland, will showcase equipment for narrow fabric production, including the VARITEX V5Ni
narrow fabric needle loom for light elastic and non-elastic tapes and belts, the NF53 6/42 s narrow
fabric needle loom for elastic and non-elastic velvet ribbons, the MDR 42 fully electronic and RD3
620 warp crochet knitting machines with weft insertion for patterned elastic and non-elastic narrow
fabrics and lace articles, and the MBJL2S air-jet weaving machine for label pictures and scarves.As
the worlds only projectile weaving machine manufacturer, Sultex Ltd., Switzerland, will provide
live demonstrations of the P7300 projectile weaving machine and the M8300 multi-phase weaving
machine.According to Sultex, the P7300 features: leading-edge machine control hardware and
software; new machine design with mature geometry; a browser-ready terminal for direct Internet
access; 15- or 35-mm-wide tucked selvages; and new lubrication and maintenance systems for maximum
availability.The M8300 system for standard fabrics has a weft insertion rate of up to 5,500 meters
per minute. Sultex says that even at the top end of its performance range, the weft is inserted at
a constant, uniform yarn velocity of just 22 meters per second with minimal weft loading.Stli AG,
Switzerland, will have a presence in two halls at ShanghaiTex. On display in the Chinese pavilion
will be two jacquard machines the LX 1600 and the CX 160. The LX 1600 is a universal and high-speed
machine with reduced mass and fewer moving parts. According to Stli, it has a wide application
range on air-jet and rapier weaving machines and allows heavier loads on the hooks. The CX 160s
most typical application is for ribbon fabrics.Other Stli exhibits at the Chinese pavilion include
the dobby type 2650. Designed mainly for Chinese weaving machine manufacturers, the positive rotary
dobby 2650 is completely assembled at the companys plant in Hangzhou.Meanwhile, Stlis automatic
drawing-in machine the DELTA 110 will be on display at the Swiss pavilion. It will demonstrate
drawing-in a harness of a fancy cotton warp.Belgian company Picanol NV will introduce its new
GamMax rapier weaving machine for the first time in the Far East. The regions textile companies
requirements, such as increased productivity, the ability to weave a wider variety of textiles,
more flexibility in switching from one article to another and lower weaving cost, were considered
in the design of the machine.

Innovations of the GamMax include optimized insertion cycle for industrial speeds; insertion
of up to 12 colors; 10 reed widths; an interactive display with Ethernet connection, USB memory
stick, PDA or key tag interface; standard sumo main motor with direct machine drive; electronic
setting of shed crossing; and ELSY selvage motions. The demonstration unit at ShanghaiTex will be
equipped with a dobby and will be weaving a shirting material.Picanol will also show the OMNIplus
air-jet weaving machine.Other weaving machine suppliers expected at ShanghaiTex include Promatech
S.p.A., Italy, Tsudakoma Corp., Japan, Smit S.p.A., Italy, and NV Michel Van de Wiele,
Belgium.Dyeing, PrintingandFinishingAmong suppliers of dyeing, printing and finishing equipment,
Bruckner Trockentechnik GmbHandCo. KG, Germany, which has more than 500 lines operating in China,
will show its finishing products. The POWERLINE tenter generation has a patented air circulation
concept. Benefits, according to the company, include increased surface touched by air circulation,
higher performance and more homogenous air circulation on the fabric web.Other products at the show
will include OPTI-SHRINK compressive shrinking lines for the treatment of woven and knitted
fabrics, and the OPTI-COMPACT compacting calender for knitted open-width fabric.Hong Kong-based
Fongs National Engineering Co. Ltd. will show the ECOTECH series of dyeing machines and a range of
finishing machinery. The SCN24ST is an open-width stretcher combined compactor that was jointly
developed by Fongs and Monforts. The stretcher has up to 50 percent of overfeed and a V-shape steam
box that can wet fabric evenly. The compactor is made up of two closely aligned compacting units,
one of which is a pressing roll and the other a circulated blanket.Italy-based Loris Bellini S.p.A.
will show its RBNV 1400/1320 vertical high-temperature, high-pressure machine for dyeing and
bleaching. It operates at 5.0 bar of pressure and at temperatures of up to 140C. Its capacity,
based on cotton packages, is about 300 kilograms. In addition, it features either automatic or
robotized operation.Loris Bellini also will display the APPC 115-LV cabinet-type skein-dyeing
system for the dyeing of mercerized cotton; acrylic, wool and blends; and worsted knitting yarns.
It features a patented variable-loading design; operates at pressures of 0.4 bar and at
temperatures of up to 108C; and has a capacity of about 200 kilograms (based on mercerized
cotton).Brazzoli S.p.A., Italy, will present Innodye, a new dyeing machine unveiled at the
beginning of this year. An Innodye 600 kg with three channels will be on display in Shanghai. After
the show, the machine will be delivered to a customer.Argelich, Termes y Cia S.A., Spain, will show
two new high-temperature jet-dyeing machines the RAPIDStrETCH RS-2 CCI + RAPID SYSTEM and the
TECHNODYE HT-2 CCI + RAPID SYSTEM. Both are fitted with the new CCI and RS systems, reducing dyeing
cycles by 30 percent compared to conventional dyeing machines.Besides the two new machines, the
company also will display fabric-dyeing machinery; package-dyeing and drying machinery; and
dyehouse automation systems.

ATYC’s TECHNODYE HT-2jet-dyeing machineIn addition to these companies, other exhibiting
machinery suppliers involved in dyeing, printing and finishing include Bianco S.p.A., Biancalani
S.p.A., MCS Group, Reggiani Macchine S.p.A., Tecnorama S.r.l., Sperotto Rimar S.r.l., all based in
Italy; and J. Zimmer Maschinenbau GmbH, Austria.Other ExhibitorsElectro-Jet S.A., Spain, will show
its traveling cleaners for textile machinery; rovematic ADR automatic roving frame; bobbin and cone
automatic transport systems; cone and box automatic palletizing systems; automatic sets for
cleaning, classifying and storing ring-spinning frame tubes; draft green roller cleaning machines;
and turning static ventilators.Spartanburg-based Lawson-Hemphill Inc. will demonstrate its testing
equipment for filament and spun yarns, as well as its on-line viscosity measurement equipment for
polycondensation.Lawson-Hemphills EIB is an entanglement (interlace) tester for filament yarns that
uses optical technology. The actual yarn profile and structure may be viewed and stored along with
production printouts.In addition, the company will show its new YAS concept, which was co-developed
with the US Department of Agriculture, for spun yarn testing. The instrument uses optical
technology to grade the appearance of yarns according to ASTM International standards.As
competition heats up among emerging textile manufacturing countries (where the movement to develop
higher-quality products at a lower cost has begun), it is important for Chinas mills to adopt new
technologies and upgrade their machinery. ShanghaiTex can prove to be a timely opportunity for
machinery manufacturers to showcase what they can offer and connect with their potential
customers.Concurrent Events At ShanghaiTexIn addition to the large number of exhibiting companies,
taking place concurrently with ShanghaiTex are two other textile-related events.The Technical
Symposiums will include topics on new eco-chemicals and dyeing and finishing technologies,
technical textiles and nonwovens, spinning technology developments and applications, and garment
processing developments.The Shanghai International Techtextiles, Nonwovens and Machinery Exhibition
(SITNE) will present exhibitors that supply nonwovens and technical textiles manufacturing
machinery, raw materials for functional and high-performance fibers, and chemicals for technical
textiles.

May 2003

WestPoint Stevens Will Close Remainder Of Rosemary Complex

WestPoint Stevens Will Close Remainder Of Rosemary Complex In Strategy Adjustment To Address
DemandWestPoint Stevens announced today that the company will permanently close the remainder of
its Roanoke Rapids, N.C., Rosemary Complex as it adjusts its business plan to address current
economic projections.Preparations for shutting down the facility will get under way in early May to
meet a projected closing date of June 28. Ultimately, some 320 Rosemary associates will be
affected.”The Company has decided that this plant will not be converted to produce Basic Bedding
product as previously announced,” said Basic Bedding Division President Art Birkins. “Recent
capital investments in our existing Basic Bedding plants have provided us with a dramatic increase
in efficiency and yield — all the capacity we require for both our immediate and long-term growth.
To stay competitive in a market that’s increasingly global, it’s necessary to constantly scrutinize
our operations to eliminate any excess capacity.”WestPoint Stevens acquired the facilities in 1997
for additional towel capacity, then closed Rosemary Greige Plant in early 2001 in a move to
consolidate greige manufacturing in locations that provided the most efficient workflow. The
workforce at the remaining Rosemary Finishing and Fabricating plants, as well as Rosemary
Distribution Center, was reduced by some 125 shortly after.WestPoint Stevens Inc. is the nation’s
premier home fashions consumer products marketing company, with a wide range of bed linens, towels,
blankets, comforters and accessories marketed under the well-known brand names GRAND PAtrICIAN,
PAtrICIAN, MARTEX, ATELIER MARTEX, BABY MARTEX, UTICA, STEVENS, LADY PEPPERELL, SEDUCTION, VELLUX
and CHATHAM — all registered trademarks owned by WestPoint Stevens Inc. and its subsidiaries —
and under licensed brands including RALPH LAUREN HOME, DISNEY HOME, GLYNDA TURLEY and SIMMONS
BEAUTYREST. WestPoint Stevens is also a manufacturer of the MARTHA STEWART and JOE BOXER bed and
bath lines. WestPoint Stevens can be found on the World Wide Web at www.westpointstevens.com .
PR Newswire Press Release

New Lobbying Group Rallies Support


T
extile magnate Roger Milliken and Senator Fritz Hollings (D-S.C.) have launched a new
initiative to save jobs in manufacturing industries affected by imports. The effort stems from a
reorganization of the American Textile Trade Action Coalition (ATTAC), formed last year by the
textile union UNITE and some textile manufacturers who were unhappy with the textile industry’s
lobbying efforts in Washington.

At ATTAC’s annual meeting in March, the union and labor representatives decided to go their
separate ways when the coalition decided it needed to broaden its base and attract more industries
in order to be more effective in its anti-import efforts. At that time, ATTAC Chairman Milliken,
chairman and CEO of Milliken & Company, said it was “absolutely vital that the coalition
represent a much greater segment of the US industrial base.”

Bruce Rainor, president of UNITE, said that while he remains committed to the textile and
apparel trade goals of ATTAC, he believes the union can be more effective working through the
AFL-CIO’s Industrial Union Council, which involves other industries. The reconstituted,
manufacturing-only coalition is named the American Manufacturing Trade Action Coalition (AMTAC).

Shortly after AMTAC was formed, Senator Hollings took steps to implement the coalition’s
goals — and some of his own — by introducing in Congress his “Save American Manufacturing Act of
2003.” Hollings said the act is designed to stem the export of manufacturing jobs, combat the flood
of imports and stimulate manufacturing in the United States for textiles and other industries,
which he said have lost 2 million jobs in the past two years — some 25,000 of which were in
textiles this past year.

The far-ranging bill calls for a number of changes in tax and international trade regulations
and laws. It would, for example, eliminate tax benefits associated with off-shore production,
whether by a US- or foreign-based company. It would prevent the Export-Import Bank or overseas
private investment corporations from funding any project that does not contain at least 80-percent
US content, and it would eliminate tax incentives for companies to move their headquarters outside
of the United States.

In addition, the bill would eliminate the International Trade Commission, and it calls for an
additional 500 Customs agents to enforce the tariff and quota rules associated with textile trade.
It also would extend to the newly formed Department of Homeland Security the Buy America
procurement requirements for the Defense Department. Many of the bill’s provisions are likely to
run into stiff opposition, but Hollings and AMTAC hope the broader coalition can garner enough
strength to get a start on “rejuvenating the American manufacturer.”


EPA Sets New Standards For Dyeing And Finishing

The US Environmental Protection Agency’s (EPA’s) new national emissions standard, regulating
what it believes are hazardous air pollutants from textile dyeing and finishing operations, could
create problems for some processes, particularly some coating operations, which may have to install
new control devices.

The regulation will require dyeing and finishing operations to reduce their hazardous
emissions to the lowest levels possible with control technology, a process known as Major
Achievable Control Technology (MACT). The agency says the standard is designed to reduce hazardous
pollutant emissions by 4,100 tons per year, or about 60 percent from the baseline emissions. The
regulation will become effective as soon as it is published in the Federal Register.

The impact of the regulation was reduced after the EPA incorporated a number of
recommendations from textile manufacturers, including a proposal to permit a 12-month rolling
average for measuring pollutants. That provision takes into consideration seasonal product changes
and other short-term manufacturing processes.

Listed as hazardous pollutants (HAP) are toluene, methyl ethyl ketone, methanol, zylenes,
methyl isobutyl ketone, methylene chloride, trichloroethylene, n-hexane, glycol ethers and
formaldehyde. The EPA says there are approximately 135 major source facilities in the printing,
coating and dyeing of fabrics that use these chemicals. Exposure to these substances has been
demonstrated to cause adverse health effects including irritation of eyes, lungs and mucous
membranes; harmful effects on the central nervous system; and liver damage. Methylene chloride and
trichloroethylene are suspected to be carcinogens. While the chemicals are considered hazardous,
the EPA says it does not at this time have sufficient data to determine the extent of the threat
the chemicals pose to the populations surrounding facilities where they are being used.

The rule applies to anyone who owns or operates a fabric or other textile coating, printing,
slashing, dyeing or finishing operation, as long as some part of the operation results in the
emission of the hazardous pollutants.


Consumer Agency To Act On Upholstered Furniture Flammability
Standard

Hal Stratton, chairman of the Consumer Products Safety Commission (CPSC), said action on a new
flammability standard for upholstered furniture has dragged on entirely too long, and he plans to
wrap it up this year. The commission has been working on a proposed standard for eight years, much
to the consternation of the textile industry and consumer advocacy groups.

Stratton said, “We are going to do something. I don’t know what it will be, but it will be
worked out this year.” He also said his agency is moving forward on a mattress flammability
standard. In addition, he believes that while no such petition currently exists, his agency should
also be looking at regulating bed clothing, stating bedding flammability hazards need to be
addressed “in the overall scheme of things.”


May 2003

Mohawk’s Success


W
ith almost 100 plants, more than 250 distribution points and 32,000 employees — Jeffrey
S. Lorberbaum, Mohawk Industries president and CEO, is at the helm of a growth machine in the
flooring industry. Fueled by a wide array of products, and by distribution and sales that have
grown from $300 million in 1992 to almost $5 billion today — the momentum for both internal growth
and growth through acquisition seems unstoppable.


Textile World
’s Carpet Editor Peggy Whaley reports in this issue’s cover story that Mohawk’s dedication to
growth is not new. Rather, it has been the thrust behind moving market share from 3 percent in 1992
to a little less than 30 percent today. Whaley points out the company’s financial success as well,
noting a top-line compounded growth rate of 16 percent over the last five years.

It is no wonder that Lorberbaum has been nominated for the Contribution to the Industry
Award. The award is among this year’s new Best of FloorTek Awards, to be presented by the American
Floorcovering Alliance this month at FloorTek Expo in Dalton, Ga. Lorberbaum’s dedication to both
the customer and Mohawk’s retail partners, as well as the swift focus he has shown in moving the
company from “carpet supplier to total flooring company,” illustrate the dynamic nature of his
leadership.

Today, the US flooring industry is revered on a global basis, and it is companies such as
Mohawk that have made that happen. Leadership, innovation, investment, as well as a focus on
delivering value to the customer in the face of changing tastes, keep this segment vibrant and
healthy.

As difficult times have affected many sectors of the textile industry, Mohawk aptly
redefines itself, never forgetting its 1920s heritage from the Shuttleworth Brothers and McCleary,
William and Crouse. Mohawk continues moving forward, focusing on meeting its customers’ needs.
Strategically, becoming a national distributor of Congoleum vinyl; adding $1 billion in sales in
the hard surface arena through Dal-Tile; and acquiring American Weavers’ and Crown Crafts’ woven
businesses, making it a leader in throws and pillows — all illustrate the breadth and depth Mohawk
brings to the consumer product segment.

Given Mohawk’s history, when Lorberbaum states, “We’re excited about the opportunities for
Mohawk’s future growth,” one can imagine what the future holds. Clearly, an even stronger, more
integrated Mohawk is on the horizon.

April 2003

Cernotec Offers VisualPlant™ Solution

Greenville-based Cernotec LLC now offers its North American customers VisualPlant™ software from
Canada-based Executive Manufacturing Technologies (EMT) Inc. The software enables real-time
analysis of the complete manufacturing process and allows manufacturers to compare current plant
floor activity to previous activity.

“It’s the best technology we’ve seen that can improve total plant efficiency,” said Jason
Premo, executive vice president of marketing and business development, Cernotec. “It builds a
better link to the supply chain and offers almost immediate payback.”

April 2003

Loepfe Completes Expansion

loepfeLooking
toward the future, Loepfe Brothers Ltd. has expanded its operations with the completion of a new
building. The Switzerland-based provider of electronic on-line quality control systems for spinning
and weaving reports the new facility “strengthens the entrepreneurial infrastructure and opens up
new perspectives for Loepfe.

The new building has increased the company’s office, laboratory and production space and
improved its production flows, enabling increased reaction speed and reduced throughput times,
according to Loepfe. The company anticipates the expansion will allow it to reduce costs while
continuing to grow.

March 2003

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