Proesa Launches”El Salvador Works”PROESA, El Salvadors investment promotion agency, has launched El
Salvador Works, a campaign to attract foreign investors in the manufacturing, textiles and apparel,
agribusiness, call center and electronics sectors.International companies such as Sara Lee Corp.,
Fruit of the Loom, Grupo Calvo, Telefa de Esapa44; AES, and France Telecom already have invested
more than $500 million dollars in El Salvador in the last two years. Fifteen percent of the
countrys total employment is a result of foreign investments such as these, with the United States
accounting for approximately 60 percent of these investments.Referring to a recent visit to El
Salvador, David F. Dyer, president andCEO, Lands End, Dodgeville, Wis., said,We came we saw and we
were very impressed. We found a very favorable business environment, good infrastructure,
high-quality factories and, most important, wonderful people.
August 2002

 
Textiles Panamericanos Model Mill: Brazil’s Santista Textil
Santista Textil is investing in modern technology for the export of high-quality
products. Santista Textil is the only Brazilian multinational company in the textile
sector, and it is the largest exporter of canvas and denim in the country, having as its main
market the United States and South American countries.The company also is one of the five largest
producers of denim fabric in the world, and its external consolidated sales represent about 50
percent of its annual net income. In addition, Santista is the largest exporter of textiles made in
Chile and Argentina, countries in which it also has mills.The company, which was founded in 1994,
resulted from the merger of two very traditional Brazilian companies: SPaulo Alpargatas (Fabric
Division), founded in 1907, and Santista Textil, in operation since 1929.Nowadays, the control of
Santista Textil, a publicly traded company negotiating its shares at BOVESPA, SPaulos Stock
Exchange, is shared by SPaulo Alpargatas, 45 percent; Bunge Group, 45 percent; and Bradesco Bank,
10 percent. Santista Textil is the main manufacturer of denim fabric for jeans fashions, and
the leader within The Common Market of the South (MERCOSUR) a free-market association among Brazil,
Argentina, Paraguay and Uruguay in the market of professional uniforms.

Partial view of the modern textile plant of Santista Textil, in the city of Americana,
Brazil Producing its fabric in eight plants five in Brazil, one in Chile and two in Argentina
the company employs about 5,000 people. In Brazil, three plants are situated in the state of SPaulo
and the other two in northeastern states. The Chilean plant is located in Chigayante; and in
Argentina, plants are in Tucuman and Santiago del Estero. Big Cotton ConsumerSantista, one of
the main consumers of cotton in the MERCOSUR trading market, is responsible for about 10 percent of
the regional usage of this fiber. Aiming to enhance the quality of its fibers and, consequently,
the quality of its fabrics, Santista Textil has collaborated in the improvement of cotton seeds,
giving support to research developed by important institutions in the state of Mato Grosso, one of
the main producers of high-quality cotton in Brazil.From 1996 to 2000, Santistas per-capita net
income grew 56 percent, while its per-capita aggregate value was doubled. Invoices in 2001 totaled
approximately US$328 million.To obtain positive results and continue its internalization programs,
the company has made investments in modernization, cost reduction and business expansion in the
international markets.From 1994 to 2001, investment in these areas totaled about $200 million,
resulting in a technological upgrading of approximately 85 percent.Part of the investment was
applied to specific programs, enabling all of its factories in Brazil and Argentina to obtain
ISO-9001 certification, and three factories in Brazil to be ISO-14001-certified.The company is
committed to conservation of the environment and sees environmental management as a priority in all
its activities, products and services. This environmental commitment prompted the Brazilian
Association of Textile Industries (ABIT) to award Santista Textil with the ABIT Fashion Award in
the Environment category. Santista Creates The Innovatech ConceptThe mill located in the state
of Pernambuco in northeastern Brazil was totally remodeled during the last year. Not only did it
receive new equipment, systems and processes, but it also installed an advanced Murata Vortex
Spinning (MVS) system. The Pernambuco mill specializes in 100-percent cotton canvas and
cotton/polyester-blend greige fabrics for professional uniforms. 

Ultra-modern spinning room in a Santista Textil plantFabrics following the Innovatech
concept, officially launched by the company at the end of last year, are also produced there. They
consist of products with an antibacterial finish, protection against ultraviolet (UV) rays and
blends of cotton with recycled polyethylene terephthalate (PET).The Innovatech concept of fabrics
for professional uniforms involves an antibacterial finish that protects the fabric against the
proliferation of odor-causing bacteria from perspiration. It is inoffensive, does not provoke
allergies, and provides a greater sensation of comfort, contributing also to the extension of the
useful life of the uniform, as can be proved through AATCC Standard 147, explained Rasso von
Reininghaus, director of Santistas Workwear business unit. A second fabric finish protects the
wearer against UV radiation. The fabric, moreover, is manufactured from cotton and polyester
obtained through the recycling of PET bottles. Reininghaus emphasizes that this kind of fabric is
environmentally friendly and durable, and represents Santistas contribution to societys effort to
recycle materials and protect the environment.The polyester fiber is produced from recycling of the
most diverse types of PET bottles, of different colors and consistencies. Santista has developed a
process that permits the standardizing of raw material, a critical factor for recycled raw
material.As soon as this initial challenge was resolved, the company adapted all the productive
processes, from spinning to dyeing and fabric finishing, achieving a product of superior quality,
according to the company. Sergipe PlantThe plant in Sergipe, a state in northeastern Brazil,
specializes in adding finishing to workwear. The finishing of 100-percent cotton canvas and
cotton/polyester blends is performed there, and the plant is undergoing a huge technological and
industrial restructuring, which will result in production of fabrics using differentiated finishing
and new dyeing processes, among other improvements.According to Reininghaus, the workwear sector in
Brazil will continue to grow this year, with innovations related to fabrics and different styles as
a result of the companys Innovatech concept. Also new within this business unit is Projeto Foco
(Focus Project), initiated at the beginning of this year, which focuses through segments of action
on the specialization of manufacturing companies working exclusively with Santista fabrics.We
always try to encourage the growth of homologous manufacturing companies, with excellence and total
quality, said Reininghaus. “Intelligent” FabricsSantista produces intelligent fabrics,
demonstrating the companys preoccupation with the comfort of the user and respect of the
environment.Since October of last year, the employees of Fiat do Brasil have been wearing more
comfortable and modern uniforms that provide them with more security and comfort. The new styles
were chosen by the employees of Fiat after an internal vote that also identified dissatisfaction
with the old uniforms, which were hot and uncomfortable, limited arm and leg movements, wore out
quickly and were out of style. Hamdan, a company that uses fabrics from Santista Textil,
manufactured the new garments. With this new line of uniforms manufactured for Fiat, the company
has officially launched the Innovatech concept of fabrics for workwear. Latest NewsJune 5 saw
the latest launching of Santista Textil, the Linha Vestis (Vestis Line), which offers manufacturers
fabrics with a maximum weight of 200 grams per square meter (g/m2) of Brazilian or Egyptian cotton
blended with elastane, polyamide, Tencel®, polyester and linen; and even sophisticated blends with
metal wires. This new line of products demonstrates the effort of Santista Textil in searching for
innovations and exclusivity of offering, a differential that underlines all the companys actions in
Brazilian and international markets, emphasized Vicente Moliterno, director,
Jeanswear. Interview With Herbert SchmidIn an interview given exclusively to Textiles
Panamericanos during the launching of the new product line, Herbert Schmid, president of the
company, said Santista is investing 18 million dollars to produce light fabrics to be used in the
manufacture of womens, mens and childrens apparel and shirts, and as substitutes for imports.We
have been using the most recent technologies and equipment, which exist only in First-World
countries, and with this production we will substitute for the imports that our clients were using
to provide the characteristics of differentiation, exclusivity and innovation that consumers
demand. We have almost completed the building of a new plant at the Tatui mill in SPaulo, and we
are finishing a cycle that required investments of more than $160 million over eight years, said
Schmid.Schmid concluded his statements by emphasizing a new line of fabrics offered to the market
solutions that offer economy of time, differentiation and exclusive patterns, according to the
needs of each customer. 
August 2002

Flash Report Avondale Receives
TW Innovation Award In these uncertain times, it is refreshing to see a company that
is more than a century old still making innovative waves in the textile industry.Avondale Mills,
Inc., a company committed to delivering high-quality, low-cost utilitywear fabrics, denim and sales
yarn, was honored by
Textile World at a luncheon in June at the Cherokee TownandCountry Club in Atlanta.G.
Stephen Felker, chairman, president and CEO of Avondale, was presented the
Textile World 2002 Innovation Award by Douglas C. Billian, chairman and CEO of Billian
Publishing Inc., publisher of Textile World. 

My hat is off to the extraordinary skill with which Avondale operating associates produce
customized product in a mass-production environment. At the same time, our technical and marketing
associates must design in an environment burdened by restraints imposed by consumers in terms of
price points, and our manufacturers in terms of practicality, Felker said in accepting the
award.Our customers should stand beside us in this moment of honor for the guidance they provide in
product development, as should our suppliers for their role in solving execution challenges, he
added. 

Guests gathered at Atlanta’s Cherokee TownandCountry Club for the TW 2002Innovation Award
luncheon.

Douglas C. Billian (left) presentsthe 2002 TW Innovation Award toG. Stephen Felker. 

Left to right: Avondale’s Kelley Wassermann, Delen Boyd, Tony Roysterand South Bryan

Richard Swearengin (left) and Tim Stansell, Avondale 

Dott. Rino Morani gave a special recognition award to Felker from Savio S.p.A. for Avondale’s
dedication to advanced technology.

Mike Lollis (left) and Zami Aberman with Elbit Vision Systems 

Fritz Legler (left), Sulzer Textil, greetsMorani, Savio,while Ueli Schmid, Rieter Corp.,
stands nearby.

Bill McAndrew (left) and Neil Bradberry, Zima Corp., chat with Stephen Felker, Jr.,
Avondale. 

Left to Right: Andy Kukic, Noveon;with Tony Royster and Lee Willing, Avondale 
August 2002

Industry InterviewBy Jim Phillips Range Of Opportunities
Sulzer Textil maintains a distinct brand of product, performance and
innovation. Sulzer Textil, the venerable Swiss weaving machine manufacturer, was acquired
last year by the Radici-owned Itema Group, an Italian company that is also the parent of Promatech,
which manufactures and markets Somet and Vamatex weaving machines.Speculation has run rampant
through the industry about just what the ultimate fate of Sulzer will be. Often, when a leading
company is acquired by its competition, the product offerings of both begin to blur into a single,
homogenous line with little difference other than nameplates. 

To find out whats in store for Sulzer as part of the Itema Group,
Textile World sat down with Paolo G. Antonietti, president, Sulzer Textil Group, and
talked about the opportunities and challenges ahead.We are completely interested that the Sulzer
brand name remains on our machines, advertisements, distribution channels, and with all of our
agencies and sales people, Antonietti said. The brand name is very well-recognized all over the
world. Sulzer Textil is linked to service after sales to our customers, so we are very willing to
promote and continue this brand. Market LeaderThe brand will flourish as more than a name,
however. Sulzer, as a leader in this market, will continue to bring innovation and new products on
the market, he said. Just this last year, we brought to OTEMAS and ITMA a completely new projectile
machine, the G6300. We brought a new terry rapier machine. The terry market is a very big market
for us. We are the absolute leader in terry fabrics, and we have to continue to innovate. “We have
a new version of the multiphase machine, the M8300 version B-12. Thats three new machines at the
exhibitions. I am not promising we will have three new machines in Birmingham [ITMA 03]. However,
for sure well have some very interesting novelties for our customers there. You know, if we look at
the amount or the size of our R and D department, it is amazing. If you bring together Sulzer and
Promatech, we have 310 engineers for R and D. 

Sulzer’s G6200 weaving machine with a Grosse electronic jacquard headIn air-jet weaving,
Sulzer plans to continue its long-standing arrangement with Toyota. This has been a very successful
collaboration in the past, Antonietti said. From our side the Sulzer Textil side it is all research
and development, and we have a lot of know-how in air-jet technology. On the other hand, Toyota has
very good manufacturing, a very efficient assembly line and the low cost of production,
manufacturing and assembling. We think the two partners bring to the project a very important and
very economic asset, and so we have extended our collaboration. However, it is restricted to
air-jet looms. Antonietti said Sulzer has a unique position in the market because it has a
full range of machines in its program. That means we are exclusively selling projectile machines,
we are exclusively selling multiphase machines. From the projectile and multiphase machines, we go
to the rapier and air-jet, so we have the full product portfolio to offer our customers. This
enables us to weave the most complicated technical textiles, very heavy and very large, extra-width
applications, up to the most simple fabrics where production speed and output are the key
issues.”Other manufacturers are cruising on the rapier or air-jet, so they cannot serve the high,
demanding, technical and very specific applications for glass fibers or other application where you
need projectile looms. At the same time, they run at the maximum air-jet speed limit of 2,500
meters per minute (m/min). We are more than double that with the multiphase machine. We can
approach any kind of customer in terms of product portfolio, while our competitors only focus on
one specific issue. Multiphase CapabilityThe Sulzer M8300 multiphase machine, which enables
multiple weft insertion, is targeted toward mass production of simple fabrics, he said. Today, this
production is mainly done with projectile or air-jet machines, but customers want to have a greater
output. They want to reduce energy consumption. Air-jet machines are very expensive to run.
Customers want to have a restricted area for buildings. That means they want to have more
production in existing premises. They also want to reduce costs for personnel. “To have the same
personnel attending much faster machines, we had to develop a technology that was completely
revolutionary. We have four wefts inserting at the same time, so we are going to be much faster
than any air-jet machine. The future is definitely clear there. However, we have to be very clear
here: this is not the machine for fashion-oriented fabrics, for wool, silk, technical applications
or for very large, double-width applications. This machine is for commodity products, where you
only look for volume and want to reduce your cost of production. Geographic MarketsAs far as
markets for the machine go, the Far East has a great deal of potential, as well as India and
Pakistan. Today, any investment in the area of commodity fabrics has to take into account the
multiphase machine. Of course, prerequisites are important. First, the customer must really focus
his product range into the commodities market. “Secondly, he must be ready to invest not only in
the machine, but also in the infrastructure to optimize this kind of machinery. This is mainly
logistics and air-cleaning devices. He must be in a market where he can run longer production runs,
which means the order he gets from his customer must be stable, without frequent stops, article
changes and so on. This is because the machine has such a production output that you have to be
sure that you continue to produce without changing the article. Otherwise, your investment doesnt
pay off. Latin America Buys Long-TermIn addition to the Far East, which is buying many used
Sulzer machines, as well as state-of-the-art machinery, Sulzer has a large presence in Latin
America. Sulzer has big stakes in Latin America. Latin American companies invest for the long-term.
They are not investing like the Chinese, in machines that depreciate in a short term and are going
to be replaced in a few years. Latin American customers generally run Sulzer machines for 30 years
or more. We have a lot of installations with projectile machines running at an efficiency ratio of
96-98 percent. There are a number of reasons they run machines for so long. “First, the import
duties are very high in Latin America, and once you import such equipment, you want to be sure you
can run with this machine in the long term. Secondly, in Latin America, customers are typically
looking to have a machine that has high versatility and capacity to change articles, to be ready to
weave different styles. So typically, Latin America is an area where Sulzer projectile machines
have an ideal position.”Another issue is that the projectile machine has very low energy
consumption and, in a country like Brazil, this is a major issue. Another strong point is our
after-sale service that provides the customer reliability over time. He is not only interested that
the machine runs the first day when it is installed, but that the machine runs perfectly after 30
years and that he can get spare parts, maintenance and upgrading support from our technicians.In
addition to the Far East and Latin America, Sulzer remains committed to the North American market,
Antonietti said. We will continue our investment in our subsidiary in Spartanburg, he said. We are
very proud of our American operation. It is a profitable organization. We still have our continuous
business in the States. 
August 2002