DuPont and Akra-Teijin S.A. de C.V., recently discontinued talks on a joint venture to make and
sell polyester filament yarn in the Americas.Akra-Teijin is the subsidiary company of Alpek S.A. de
C.V., which is part of the Alfa Group, and Teijin.The companies signed a letter of intent in April
1999 to combine their polyester filament operations in the Americas in a 50/50 joint venture. (See
“News,” ATI, May 1999.)According to the companies, depressed market conditions throughout 1999 and
the complexity of the U.S. market made it difficult to gain alignment on future direction.

June 2000

The first three respondents to the Yarn Market this month set an optimistic tone which hasn’t been
heard from cotton spinners in months. “A11 markets are busy. We are running full – seven days.”
This from an open-end spinner.

3 The second spinner commented: “Our markets are great for both open-end and ring-spun
yarns. We are on a full seven-day schedule and can’t meet the demand.”

The third yarn man, speaking of his markets, said: “They are tight across the board.
Ring-spun carded-cotton yarns are especially tight, but ring-spun combed is almost as strong.”

All three mentioned that their customers were optimistic as well. So optimistic in fact that
spinners are beginning to make projections of superior markets for several months ahead. In the
recent past, most spinners would tell you that they couldn’t predict what would happen tomorrow or
next week, let alone several months ahead. Here again, all three commented that they were sold up.

When a spinner was asked what caused the upsurge in business, particularly in open-end
markets, no one had a clue. In fact, one asked to be advised if an answer was forthcoming from any
source.

Pricing Woes

In spite of the improvement in sales, there is no joy in pricing. A spinner observed that
while they couldn’t make enough yarn to meet the current demand, prices weren’t following.

One spinner said: “Pricing has improved slightly. We were able to pass on the increase in
polyester prices, but you can’t make any bold moves.”

Another spinner said: “We are nothing but a conduit for cotton.” He was referring to the
fact that spinners were paying more than 55 cents a pound for cotton and expected to sell yarn for
30 cents more, leaving little or no margin for profit.

Interest in open-end yarns of poly/cotton have surged. Carded ring-spun yarn for the denim
trade is, according to one yarn man, bigger than ever, and the demand for open-end yarns for this
same market is on the rebound. Markets for air-jet yarns are tight as well. The only market
currently in doubt is fleece. One respondent said that initial reports from their biggest customers
indicate that a turn-around will happen soon and probably last through the summer.

The subject of exports comes up nearly every month, and this month was no exception. There
was, however, a different take on the subject by one spinner, who said: “We can export open-end
yarn now because we are competitive, but who would want to? With the domestic markets so good, why
export? Besides, I have always heard said that anything we export will come back to haunt us.”

Synthetic Shares Better

Spinners of man-made fibers have also seen an improvement in their markets. The mills are
running full – some running extra shifts. A synthetic spinner said: “The increase in acrylic fiber
prices has given us an opportunity to increase yarn prices. We book everything with a fiber clause,
but the big boys still want to deal. Smaller operators accept our pricing pretty well. As far as
the hosiery trade is concerned, there is very little left for acrylics. It has all moved to cotton
unless it is something special, like antibacterial.”

South Of The Border

On a recent visit to Mexico, one respondent mentioned that businessmen were complaining about
cheap garments and cheap goods coming in from China and the scarcity of trained labor. They
complained about the fact that once they trained an employee, the person would go to the United
States, send half of his pay back to Mexico, work two years and return to Mexico where he would be
rehired.

Many spinners wonder aloud why, with so many mergers and take-overs, we never see much of a
reduction in total pounds produced. They wonder as well why some marginal operations don’t go out
of business. One opinion expressed to the Yarn Market was that some mills can’t afford to go out of
business. They simply owe too much money.

In addition, the banks are afraid to get out because they are owed too much money. Now there
is something to think about.

While the conventional textile industry continues to place analog restrictions on digital
printing, a growing number of graphic artists, fine artists, interior designers, custom clothiers,
photographers and sign makers dont see the restrictions, but instead see the new market
opportunities. For these people, the only limits on digital printing technology are their
imaginations.The conventional textile industry has slowly been reaping the rewards of digital
printing for sampling and presentation, which provides both a tremendous cost savings and reduction
in time to market. The industry has been resistant to look at digital printing for production, as
most of the industry has a mass production business model that cant support the slower speeds and
higher costs of digital printing. The post-processing requirements for steaming and washing of
digitally printed fabrics have also created a barrier to entry, as have fear and lack of experience
with the technology.As the textile industry tries to ascertain the future of this emerging
technology, a growing number of creative entrepreneurs are discovering and developing entirely new
products and markets to which they can sell short-run customized products. There are the movie
studios that need printed fabric for duplicate garments and backdrops, the entertainment industry
with its insatiable need for unique costumes, the sports apparel markets need for custom team
uniforms, the artists who see clothes as a new canvas for their work and interior designers who can
express themselves on upholstery as well as wall, floor and window coverings.While the flag and
banner business has been deploying this technology for a number of years, this market is still in
its infancy. The ad specialty business is another market well poised to exploit the
opportunities.As these market demands bring about a convergence of graphic arts, printing and
textile industries, there is a growing number of companies satisfying the growing demand for
fabrics that are custom treated for use on ink-jet printers. Ink-Jet PrintingThe new
generation of ink-jet printers can accommodate virtually any fabric that doesnt leave lint that
might clog the print heads. However, getting the fabric to feed through the printer; getting the
ink to stay on the fabric; getting the colors to pop; and getting the finished product to withstand
washing, sunlight, and for some applications, pollutants, acid rain, intense heat and other
environmental pressures, has become a science created from the marriage of technology, art and
chemistry. This science has created new products and market opportunities for several ink-jet
fabric companies.There are two primary methods used for stabilizing and feeding fabric through an
ink-jet printer. One is a paper backing, and the other is a feed and take-up system. While many of
the OEMs have developed feed and take-up systems that eliminate the need for backing on rolled
goods, experts advise users to work closely with their equipment supplier and to test all fabrics
to be used for either sampling or production.Most fabrics used in ink-jet printing will require a
pre-treated coating in order to prevent the ink colors from bleeding on the fabric.While some
natural fiber fabrics do not require pre-treating, the colors produced on non-treated fabrics will
end up very faded. The only way to obtain vibrant colors is by pre-coating the fabric, and for many
applications it will also require a post-process step of steaming and washing of the fabric after
printing. Ink ChemistryOne of the greatest challenges for this new market has proven to be
that of ink chemistry. The wide-format ink-jet printing vendors, which are now looking to expand
into the textile industry, have been using pigmented process color inks for output to paper. The
textile market wants to use its conventional spot color inks, which include reactive, acid and
dispersed dyes.While several ink companies are developing and delivering inks for the textile
market, the chemistry requires the finished fabric printed with reactive, acid and dispersed dyes
to be steamed and washed if it is to be applied to an end use other than presentation, sampling or
signage. Steaming will fix and enhance the color, and the post-washing will get rid of excess ink
that can adversely affect the finished hand.DuPont claims that its pigmented inks only require
heat-setting for production use on textiles.The ink chemistry issue is magnified when combined with
the various chemical compositions of the different fabric coatings from the growing number of
ink-jet fabric vendors. Each of the vendors we spoke to has its own unique formula for defining
what inks will and wont work, as well as its own methods for finishing and testing printed textiles
for commercial use.Lee Newsom, a 10-year veteran of Colorspan and a partner in Jet Effects Inkjet
Textiles, feels that the time has come for the American Association of Textile Chemists and
Colorists (AATCC) to establish testing standards for the emerging ink-jet textile market. The
Ink-Jet MarketplaceMany of the printing equipment vendors have developed strategic partnerships
with ink-jet fabric suppliers with whom they have conducted a wealth of research on the chemistry
mixes of fabric, coating, inks and washing. While end users will save a tremendous amount of time
and money in working with these proven formulas, they should be aware that there are a growing
number of new fabric options on the market.Los Angeles-based DigiFab was one of the first companies
to offer ink-jet textile fabrics to the market. The companys patented coating process has been
applied to its stock line of sheeting, twill, rayon challis, silk, polyester crepe, cotton jersey,
1X1 rib, cotton Lycra® and interlock, which is put up in bolts of 10 or 25 yards. All fabrics are
available with or without paper backing. DigiFab also offers custom coating for companies that
prefer to use their own fabric or want to coat fabrics DigiFab does not stock such as voile,
velour, corduroy and sheers.DigiFab Systems, the companys newly formed software division, offers
software products and services to support the textile design process for companies developing
prints for both rotary screen and digital printing. They also offer support to Foresight® Design
software and provide custom software development specializing in custom drivers for ink-jet
printers.3P InkJet Textiles, Germany, has been marketing its line of coated fabrics for more than
two years. In addition to a large selection of interior/fashion textiles including cottons, wool
and silk, the company also features a line of flame-retardant textiles for which it is working on
global certification.As owner Thomas Potz points out, when using textiles for printing flags or
banners, it is important that they be fire retardant not just in the country of origin, but in any
country where the finished product will be shipped. 3P claims its flame-retardant textiles require
no special textile inks.While 3P does not offer custom coating, it does offer a licensing contract
under which it will ship coating to mills to allow them to do their own coating. They also offer an
office-size fabric steamer that will hold up to 23 yards of 62-inch-wide fabric. Complete
SolutionsJacquard Inkjet Fabrics, Healdsburg, Calif., is a division of Rupert, Gibbon and Spider, a
company with more than 18 years of experience supplying the fine arts industry. The company
manufactures its own inks and coatings and offers a complete solution from design through
production for ink-jet-printed textiles through alliances with mills, software vendors and printer
manufacturers and the development of a short-run steamer that holds up to 50 yards of 60-inch
goods.We dont just offer solutions, we offer know-how. We have been training people for 18 years on
how to color fabric, said Mark Trimble, principle, Jacquard.Jacquard has leveraged this experience
to create several consumer products that demonstrate a few of the many new market opportunities.
Kits offered by Jacquard feature everything including fabric, solution and instructions that allow
the home craftsperson with an ink-jet printer to create doll pin kits, ties and handkerchiefs, silk
scarves and quilts.While early commercial adopters of Jacquard Inkjets systems have been in the
flag and banner markets, the company is expanding its focus to high-end goods where traditional
dyestuffs will apply. It offers 75 fabrics including silk, cotton, wool, linen, rayon and nylon and
knits. All stock fabrics are available with and with-out paper backing. Custom coating with a
50-linear-foot minimum is also available. Jacquard is the only company selling its goods by the
square foot, a convention derived from the digital printing market.  From Diapering To
DyeingKimberly Clark Printing Technology, Roswell, Ga., is a division of the Kimberly-Clark Corp.,
best known for consumer products such as Kleenex and Huggies. The company leveraged its surface
science technologies in 1998 with the acquisition of FormuLabs, a company with experience in ink
technology. The new business unit is focused on developing solutions for digital printing
applications, one of which is textiles.Its initial product launch included fabrics and inks for
textile design sample printing, as well as its EPIC brand products for signs and banners. Product
Manager Laura Cochran has been working closely with the mills to source a broad range of fabrics
with consistent white point throughout the line.Design products are formulated for color and hand,
while the companys sign and banner products are focused on durability. The base fabric line for use
in sampling includes cotton, silk charmeuse, crepe-de-chine, polyester georgette, polyester chiffon
and nylon Lycra. The company will soon be launching the second generation of fabrics, designed to
work with reactive and acid-dye inks. These production-quality fabrics will need steaming and
washing. All fabrics are paper-backed. The company offers custom coating.In addition to its
full-width fabrics, the company is offering a line of desktop fabrics designed to be used on the
Epson 3000 desktop ink-jet printer. The fabric is put up in 16 1/2-inch widths by 3 yards and is
designed for the production of fabric swatches. In addition to the fabrics, the company offers
several ink sets for the Epson 3000 printer. This is an easy-to-use and compact solution that can
fit in any design studio, Cochran said. Lab To ProductionJet Effects, Las Vegas, is the most
recent entry into this emerging consumables market. Owner Lori Dvir-Djerassi operated a fine arts
gallery for 15 years in the lobby of the Anaheim Hilton Hotel, where she found an increasing number
of clients wanting to reproduce art on garments.The Jet Effects coating process and results are
patent pending. Dvir-Djerassi expects the patent to be issued sometime this fall. Jet Effects has
worked for three years to get the process from the lab to production. The company has just
completed its first full-scale production runs. Jet Effects claims its coatings will accept any
type of dyes or pigments including reactive, acid and even direct dyes. Its printed textiles
require no steaming, and target customers are doing production applications, not strike-offs or
sampling.Jet Effects commercial line of fabrics includes lightweight cottons, heavyweight cottons,
twills, canvas, silk, crepe, denim, rayon, basic knits, velvets and cotton/poly blends. Custom
coating is available on pfp (prepared for printing) goods with a one-bolt minimum. While the
company does offer its textiles with paper backing, Dvir-Djerassi claims to have developed a
manual-feed technique that can be used with nearly any printer, and will feed the fabric without
either a backing or a feed and take-up system. The FutureAll of these textile pioneers are
betting their businesses on the future growth of ink-jet printing for a variety of different
markets and applications. A good indication of the markets potential can be found in the
wide-format printing industry, a market that didnt exist prior to 1994.According to I.T.
Strategies, the estimated retail output for wide-format printing in 1999 was $16.2 billion, with
2000 output estimated to be $21.3 billion. Early adopters, much like the textile industry,
complained that the technology was too expensive and too slow.Just as the paper web press industry
lost a portion of its market to this new digital printing market, so too will the analog textile
printing industry. As the cost of the ink-jet printers falls, more and more of the market will
shift from analog to digital printing. Projections on how much fabric will be digitally printed
range between 12 to 15 percent and 50 percent in 10 years. It is estimated that the market will
shift from 50 major textile printers to 500 smaller ones, many offering short-run customized
solutions to satisfy more sophisticated customer demands.These short-run printers will create new
products and new markets. Potz envisions fabric stores that carry only white goods printed on
demand. He sees this as an excellent solution to seasonal/holiday merchandise, which will no longer
need to be stocked or marked down after the holidays. Potz also sees seamstresses, tailors and
custom clothiers offering their services with printing capabilities in alliance with traditional
retailers. And he sees service bureaus with printers, steamers, washing machines and irons as
playing an expanded role in the market.Trimble envisions mom-and-pop operations approaching local
niche markets, supplying costumes for their kids dance groups and local teams. He also sees the
service bureau operation, specializing in 100- to 500-yard lots, as playing an expanding role in
this emerging market.Service bureaus will work with interior design and decorating studios. Trimble
claims a third tier will offer the complete solution to include cutting and sewing finished goods.
With early adopters all in agreement that sewing the finished product is the greatest challenge,
many see this as a market opportunity and resurgence for the seamstress, tailor and home sewer.The
bottom line is that while the technology isnt perfect, technology limitations are no excuse to
avoid the future. The markets will develop and the limitations will be overcome. Early adopters
will be the big winners. The question is who will these early adopters be, and how much of the
emerging market share will the textile industry give up before it wakes up to the opportunity Editors Note: Teri Ross is a writer, speaker and consultant focusing on CAD/CAM technology and
process improvement strategies for the sewn products industries.She is owner and president of
Imagine That! Consulting Group, publishers of the award-winning techexchange.com. She can be
reached at tross@techexchange.com or at (952) 593-0776.

June 2000

FOCUS 2000By Eric Vonwiller, Senior Technical Editor Bayer Continues World-Class ManufacturingThe Bushy Park spandex fiber plant remains on target with its product and customer
commitment.In June 1998, ATI reported on Bayers technologically advanced Bushy Park, S.C.,
facility and its $60-million expansion of the Dorlastan® spandex fiber plant. In this issue, ATI
will focus once again on this outstanding manufacturing facility, its success and continuous
growth. Even though this plant is not a typical textile mill, it demonstrates true management
leadership, rapid response and extreme safety consciousness throughout the entire facility.

The Bushy Park management, headed by Neal E. Tonks Ph.D., director of manufacturing, call
themselves “the new kids on the block.” In 1995, Bayer took the North American spandex market by
storm with the opening of its first U.S.-based spandex fiber manufacturing facility. While Bayer
had been producing Dorlastan spandex in Germany since 1964, the company identified that the U.S.
market was looking for alternate spandex suppliers. This prompted Bayer to develop the facility in
Bushy Park with an initial 4,000-metric-ton capacity. Spandex Demand GrowsBased on know-how and the
leading image of Bayers Dormagen plant in Germany, the Bushy Park plant was designed and furnished
with the finest equipment available. In 1997, Bayer considered itself one of the top spandex
suppliers around the world and announced an expansion, supplying Dorlastan to some of the best
textile mills on a global scale. The response to the South Carolina facility was overwhelming as
the demand for Bayers high-quality spandex grew. This prompted a further expansion of its facility
to nearly double spandex production annually. The expansion of the North American plant, combined
with the latest expansion in Dormagen, doubles Bayers global production capacity of Dorlastan. The
company emphasizes that this is the commitment to meet and exceed customer needs, while delivering
the same high-quality product, service and support worldwide. The Fibers Group of Bayers Fibers,
Additives and Rubber Division manufactures and markets Dorlastan spandex fibers for textile and
industrial applications. Bayer has been producing Dorlastan spandex for the global market since
1964, and today it is the worlds leading supplier of the polyurethane raw materials and technology
that are the bases of spandex production. The Fibers Group is an integral part of Bayer, a
research-oriented company with major businesses in healthcare and life sciences as well as
chemicals. Headquartered in Pittsburgh, Bayer Corp. is a member of the worldwide Bayer Group, a
$29-billion international life sciences, polymers and specialty chemicals group based in
Leverkusen, Germany.Safety FirstBayer had the advantage of starting with a greenfield plant for the
spandex production, which permitted a very modern approach in reference to equipment, building
layout and infrastructure. But even more important is the human factor at Bushy Park the selection
and education of its personnel throughout the plant.

Ben L. Bruner, manager, quality and technical service, explained that approximately 150
people were selected from thousands of applications. They were then taken through intensive
training on all technological and practical aspects of manufacturing: hands-on training,
housekeeping, quality training and, on an extremely high-priority level, safety training. Tonks
mentioned an almost unbelievably good safety record, and stated that Bayer has received numerous
safety awards. Since the initial start-up, the plant has not had any incidents that reflected in
lost time and workmens compensation. The Bushy Park plant is a very “lean” operation, and even
after several expansions, the total number of employees is still not more than approximately 240.
“This includes everybody technical people, administration, all,” Bruner said.Rapid ResponseBesides
excellent product performance of all Dorlastan fiber and yarn variants that are shipped to
customers, Bushy Park is very proud of its flexibility to fulfill customers needs, even for the
smallest orders. It is not uncommon for a customer to request a small quantity of yarn for tests
and trials. Such orders often require super-fast response time. Karen E. Flowe, who is responsible
for customer service as well as the material handling side of the business and warehousing,
shipping and receiving, has seen orders come in and go out the door within a few hours. Even when a
customer places a trial order for less than 50 pounds at 4:00 p.m., he gets the same priority as a
large order. Therefore, no matter how big or how small an order is, it gets the utmost attention to
satisfy the most demanding customer needs. This commitment is clearly reflected in more than 500
customers the Bushy Park plant calls its own. Many of the customers may be considered low-quantity
yarn users, but their needs are exactly what drives Bayers innovation, the quality consciousness
and the quest to ultra-quick response. Because quality is always a top priority, the company
executes continuous internal audits and quality insurance tests, as well as supplier
audits.Terrific Customer ServiceBayer is determined to be the most responsive spandex manufacturer
in the world. The entire quality system is built on customer standards. Fiber testing is performed
at the customers plants. “In case of a problem, generally, we are there in a matter of hours,” said
Bruner. “If there is a problem with the shipment, its replaced in less than 24 hours.” Tonks
explained that Bayer fully understands the problems customers face today with just-in-time
inventory control and low inventory, that supply chains can get very, very tight. Bayer has
therefore made the commitment that within NAFTA, the company will respond in less than 24 hours,
with much commitment often in less than 12 hours. Technical service representatives will analyze
the problem, try to solve it on the spot or get fresh yarn out, and even help the customer to
adjust their equipment if necessary. “All of the technical support people are on call 24 hours a
day, seven days a week, 365 days a year,” added Bruner. “Most of our customers have our home phone
or cell phone numbers.” People InvolvementCommunication throughout the entire plant is on a
high-priority level. All personnel groups are self-directed workteams. The typical workteams are
intensively cross-trained to avoid any production problems should an operator be absent. All people
on the production floor are computer literate. Therefore, almost everybody needs to serve time in
the control room where the entire plant is monitored to gain knowledge about the production. If an
operator has a problem with the equipment, everyone will know this immediately, because every
person on the production floor has his own e-mail access. The managements confidence in its
operators is so great that only 30 people are responsible for the entire production over weekends
and holidays without any on-site supervision.Technological EdgeTo keep the top-quality production
going all year round, the plant has a world-class predictive and preventive maintenance program.
This helps to ensure that all vital components are cleaned, exchanged or repaired before any
quality loss occurs down the road. It also eliminates a lot of surprises that typically happen at
the worst times or on weekends. Besides this, every spinning position is 100-percent traceable. For
example, just in case a customer should encounter a problem with some materials, a quality team
member from Bayer can instantly identify the package and trace it back to the specific machine and
operator. The Bushy Park facility received ISO-9002 registration from the International Standards
Organization in April 1998, and offers a fully operational fiber mill on-site to pre-test its
knitting, dyeing and finishing properties. The Dorlastan knitting applications lab is committed to
excellence, using only the best mill equipment including: advanced warp knitters, a Monarch
single-jersey circular knitter, a Lonati hosiery knitter, circular knitting and hosiery machines
such as Karl Mayer warp tricot and raschel knitters and several Karl Mayer warpers. The warping
business plays a significant role in the companys overall market strategy. By being a technology
leader, Bayer continues to support the warp knitting industry and invests in application
development for swimwear, sports apparel, intimate apparel and many other leisurewear spandex
applications.The on-site dyeing and finishing lab also includes equipment typically installed in
customers mill facilities, using either jet- or beam-dyeing machines. Scalvos and Thies are Bayers
preferred brands that simulate mill-dyeing conditions. Proper stretching and fixation of the fabric
is done on a Bruckner tenter frame. After the fabric is heat-set, it is cut and evaluated.
Installation of Santoni seamless equipment is currently underway in the Dorlastan applications lab
in Germany, and the technical team at Bushy Park and their German colleagues will use this
technology to collaborate on product development with garment manufacturers. Bayer is actively
pushing the seamless trend by developing a broad array of applications in activewear, intimate
apparel and even select mens garments. The Logistics Advantage

Bayer invested several million dollars in its new warehousing and shipping department. Headed
by Karen Flowe, the warehouse has undergone an installation of the latest state-of-the-art
computer-controlled storage rack designed and delivered by ALVEY Material Handling Systems, St.
Louis and Cirrus Technologies, Raleigh, N.C. A high-tech warehousing and shipping facility is an
absolute must and one of the key factors to success, according to management. After Dorlastan is
produced, the spools are packed in labeled boxes. Each spool is tracked throughout the
manufacturing process until it reaches the customers operation. Bayers new material handling system
stores and retrieves boxes based on customers orders, which are then shrink-wrapped and shipped.
Even in the warehousing and shipping area, Bayer is environmentally conscious in every aspect and
uses recyclable materials. The storage area is climate-controlled so that the customer receives the
yarn in the best possible condition. At the same time, the customer receives detailed instructions
on how to handle the Dorlastan spandex. Management proudly told ATI that Bayers Bushy Park plant
achieves the on-time delivery goal almost 100 percent of the time.Fiber ExcellenceAccording to
Bayer, Dorlastan offers a number of outstanding characteristics that make it a preferred type of
spandex for almost all applications, including consistent and uniform processing characteristics,
high-stretch and reactive forces for comfort, high-elastic retention for a lasting fit and
excellent dyeability to allow uniform colors and shades. The Bushy Park facility currently produces
Dorlastan spandex in a full range of deniers, from 10 to 1,220 denier, in dull and clear lusters.
Dull Dorlastan is preferable for white color applications and light pastels, while clear Dorlastan
echoes the colors of the yarns with which it is spun and adds brilliance and clarity to color.
Dorlastans quality and value have enabled customers to incorporate the fiber easily into their
lines, including lace interknitting, circular knits, core-spun fabrics, woven fabrics and narrow
elastics. Bayer is committed to being a strong supplier of quality spandex for the global market.
Market research predicts a steady growth in all applications of spandex, specifically in reference
to intimate apparel, hosiery, activewear and swimwear. As fashion trends continue to dictate
stretch and functionality of fabrics and garments, Bayers Bushy Park plant is right on target with
its product and customer commitment.

June 2000

The Santee Company LLC recently began operations at its Eden, N.C., headquarters. Santee will
concentrate its business on private-label manufacturing of finished products, marketing its own
line of Santee fleece and jersey products, and contract textile manufacturing including knitting,
dyeing, finishing and cutting.”The Santee Company is off to a fast start,” said Duke Ferrell,
president. “We have orders in hand, and production is underway. Approximately 40 experienced people
have already joined our team, and we expect that number to grow continuously through the end of the
year.”

June 2000

The U.S. House of Representatives recently passed a bill that will provide enhanced trade between
the United States and the Caribbean Basin. Beginning October 1, 2000, and lasting for eight years,
goods assembled in the Caribbean Basin from U.S. fabric and yarn, whether they are cut in the
region or not, will be eligible for duty-free and quota-free treatment in the United States.The
bill also contains provisions that expand trade with Africa as well as reversing a tariff inversion
on imported wool and correcting a marking rule relating to certain flat goods from Europe.”On
balance, we believe the outcome of the CBI trade bill is favorable for the majority of our
members,” said Roger Chastain, president, American Textile Manufacturers Institute (ATMI). “The
bill will provide American textile companies with significant new export opportunities, which we
have been seeking for years. Some of the changes made in conference will have an adverse effect
within our industry, but we recognize that the overall benefits of the bill will be helpful to the
U.S. textile industry, and we are therefore not opposed to its passage.”Although the Caribbean
measures of the bill are viewed generally as positive, the African portion presents some risks,
according to Chastain.”The potential loss of U.S. textile production and jobs as a result of these
provisions causes us concern and is indicative of the continued failure of U.S. trade policy to
treat the domestic textile industry equitably.”Moreover, the damaging aspects of the bill highlight
the need for Congress to reject permanent normal trade relations (PNtr) for China. Chinas entry
into the World Trade Organization (WTO), under the terms currently envisioned, could cost as many
as 150,000 U.S. textile and related jobs. The damaging provisions of the CBI/Sub-Saharan Africa
bill will only add to the damage that China will cause to our industry should it be granted PNtr.”

June 2000

The Dixie Group Inc., Chattanooga, Tenn., announced that it recently signed a letter of intent to
acquire privately held, high-end carpet and rug maker Fabrica International, Santa Ana, Calif., and
Fabricas interest in Chroma Systems Partners dyeing and finishing operations. The transaction is
subject to regulatory approval, due diligence review and execution of a definitive purchase
agreement.Fabrica has estimated its 2000 sales in excess of $50 million. It manufactures and sells
high-end luxury carpet and rugs to retailers, interior designers, luxury yachts, furniture stores
and other markets.

June 2000

Wal-Mart Chooses DatacolorFor Digital Color TechnologyWal-Mart Stores Inc. has selected Datacolor International, Lawrenceville, N.J., to communicate color electronically via the Internet throughout its worldwide vendor and manufacturing supply chain. Datacolors Color Information Management System (CIMS) includes the industry-leading ColorTools QC and Colorite software systems together with the Spectraflash® SF600 Plus CT spectrophotometer. According to Bob Connolly, Wal-Marts executive vice president, merchandising, it was a combination of technology and vision that led Wal-Mart to choose Datacolor International. “Its what Wal-Mart is all about,” he explained, “using technological edge to approach and fulfill customer needs in very unique ways.”The CIMS program will provide Wal-Mart, as well as its vendors and suppliers, with precise reproduction, analysis, manipulation and communication of color data and images.”Our mission and philosophy align with Wal-Marts,” said David Crozier, president and CEO, Datacolor International. “We developed CIMS to help retailers and manufacturers provide the marketplace with a higher level of quality product at a faster pace. Using a digital approach to color is the key.” May 2000

Twitchell Announces$2-Million Expansion ProjectTwitchell Corp., Dothan, Ala., recently announced an expansion project involving more than $2 million in equipment and technological improvements at its headquarters. The investment will expand four manufacturing departments extrusion, beaming, weaving and finishing boosting capacity and enhancing operations.Key improvements include new looms to expand the production of jacquard fabrics and a state-of-the-art range for the finishing department. Specialized extrusion additions will further improve the companys distinct vertical production capabilities.A new radio frequency system added to the management information systems department will improve efficiency in production and inventory control by producing and assigning bar codes to each unit in process or finished goods.The new additions will increase Twitchells ability to respond to customer delivery requirements and provide a more effective work environment for the companys employees as they respond to continued growth. May 2000