Pillowtex Announces Production Consolidation

Pillowtex Corp., Dallas, announced it will be consolidating production of kitchen and institutional
towels at the company’s Opelika, Ala., weaving facility into three other plants located in Phenix
City, Ala.; Fiedale, Va.; and Kannapolis, N.C.According to the company, the Opelika plant will be
closed. It was acquired as part of PIllowtex’s purchase of the Leshner Corp. in 1998.”Based on
initial study of the Opelika facility, we determined the spinning operations should be moved to a
newer plant that we purchased in Tarboro, N.C.,” said Jeffery D. Cordes, president and chief
operating officer. “We have now concluded the company will achieve significant operational
efficiencies by consolidating the remaining weaving operations into other company sites.”

March 1999

Springs To Invest 20 Million At Chester County Plant

Springs Industries Inc., Fort Mill, S.C., announced plans to invest $20 million to convert the
Elliott Plant in Fort Lawn, S.C., from an apparel weaving facility to a state-of-the-art home
furnishings weaving plant.Consolidations of greige manufacturing and the recent sale of Springs’
apparel fabrics division led to the decision to convert the Elliott Plant to a home furnishings
plant with the installation of modern weaving equipment.”The Elliott Plant is steeped in the rich
history of our company,” said William K. Easley, Springs’ president of Textile Manufacturing.”Built
under the leadership of H. William Close and named for Colonel Elliott White Springs, the plant
will undergo a transformation from an apparel weaving facility to one that will supply Springs with
fabrics for our home furnishings business.”He added: “this modernization project is a continuation
of Springs’ ongoing plans to modernize, streamline and consolidate manufacturing to reduce costs
and improve productivity.”According to the company, as a result of the sale of the apparel fabrics
division, Springs will also phase out the weaving operations at the Lancaster Plant, Lancaster,
S.C., beginning in April. Approximately 65 jobs will be eliminated, but the company anticipates
that all affected associates will be offered jobs at the nearby plants, including Elliott, Frances,
Leroy, Katherine and Eureka.

March 1999

Nacmias Named Vice President Of ATI39 S Parent Company

Marcella Nacmias, associate publisher and international manager of ATI and its sister publication,
Textiles Panamericanos, has been named a vice president of the magazine’s parent company,
Billian Publishing Inc., Atlanta.Nacmias will continue as associate publisher of the magazine while
increasing her corporate role as vice president of International Operations for the company, said
Billian Publishing founder and CEO Douglas C. Billian.”Marcella’s knowledge of the worldwide
textile scene, her comprehension of what could be done with our magazines and The Textile Red Book
directory, her work ethic and her leadership cannot be exaggerated,” Billian said. “She is truly an
asset of which we are all very, very proud.”In addition to its textile publications, Atlanta-based
Billian Publishing produces two other magazines ArtandAntiques and
Boating World and a series of directories in the healthcare field.”As Marcella continues
her vital role with ATI and
Textiles Panamericanos, we shall be looking to her for direction in expanding the role of
our other properties as truly international media,” Billian said.Nacmias, a native of the Czech
Republic, earned her undergraduate degree in languages from Charles University of Prague. She later
earned a doctor of philosophy degree from the Sorbonne in Paris.Fluent in six languages, she joined
ATI as a sales/administrative assistant and worked as a marketing and advertising representative in
the United States and Europe before becoming international manager, and then being named associate
publisher in 1996.

March 1999

Financial Reports

Burlington Industries Inc., Greensboro, N.C., reported that diluted earnings per share were $0.14
for the first quarter of fiscal year 1999, compared with $0.22 for the first quarter of fiscal year
1998.Net income was $8 million, compared with $13.2 million in the first quarter a year ago.Net
sales for the first quarter of fiscal 1999 were $407.2 million, compared with $481.7 million for
the first quarter of fiscal year 1998.After adjusting for businesses that have been closed or sold
since last year’s first quarter, sales were down 10.4 percent.Burlington also announced that its
board of directors has authorized $25 million for the repurchase of shares of Burlington Industries
Common Stock. This is expected to reduce shares outstanding by approximately 5 percent.Share
repurchase will be funded from existing cash, internally generated funds of bank debt and will be
in open market or privately negotiated transactions, the company said.CromptonandKnowles Corp.,
Stamford, Conn., reported that fourth-quarter earnings increased 68 percent before special items to
$14.9 million, or $0.21 per share basic and diluted, compared with $8. million, or $0.12 per share
basic and diluted, in the 1997 fourth quarter.Net earnings for the fourth quarter were $80.9
million, or $1.11 per share diluted ($1.13 basic), compared with $6.7 million, or $0.09 per share
basic and diluted, in the fourth quarter of 1997. Net sales in the fourth quarter were $401.8
million, down 6 percent from 1997 fourth quarter sales of $428.1 million.The deconsolidation of the
Gustafson seed treatment business in December accounted for about 2 percent of the decline.Springs
Industries Inc., Fort Mill, S.C., reported that both fourth-quarter and full-year 1998 sales and
earnings were lower than in 1997.Sales in the fourth quarter of 1998 were $508.4 million, down
almost 12 percent from the fourth quarter of 1997. After the effect of several unusual items, net
income for the quarter was $13.1 million, or $0.72 per diluted share, compared to $15.2 million, or
$0.74 per diluted share a year ago.Excluding the effects of these unusual items, fourth-quarter
1998 earnings would have been $14.5 million, or $0.80 per diluted share, compared to $18.4 million,
or $0.90 per diluted share in 1997.Russell Corp., Alexander City, Ala., reported results for the
fourth quarter and full year 1998.Sales for the fourth quarter ended January 2, 1999, were down 17
percent, to $274.86 million. For the year, sales were down 4 percent; $1.18 billion in the current
year compared with $1.23 billion in the period ended January 3, 1998.For the quarter, the company
recorded a loss of $4.63 million or $0.13 per share, versus income of $11.8 million in the same
period of 1997. Results for the full year reflect a loss of $10.38 million or $0.29 per share.These
results include an after-tax charge of more than $8.59 million in the quarter, and $47.997 million
for the year, related to severance and the write-down and sale of certain assets in the quarter and
year included as part of a previously announced multi-year strategic plan.WestPoint Stevens Inc.,
West Point, Ga., reported results for the fourth quarter and year ended December 31, 1998. Net
sales for the fourth quarter of 1998 increased $24.5 million, or 5.5 percent, to $470.1 million
compared with $445.6 million for the fourth quarter of 1997. Excluding the sales of Liebhardt
Mills, which was acquired during the fourth quarter of 1998, net sales increased 4.1 percent.Net
income for the fourth quarter of 1998 increased to $29 million, or $0.49 per share diluted (a
29-percent earnings per share increase), compared with net income of $23.1 million, or $0.38 per
share diluted, for the fourth quarter of 1997, the company said.Operating earnings for the fourth
quarter of 1998 were $72 million, or 15.3 percent of sales, compared with operating earnings of
$64.1 million, or 14.4 percent of sales, for the same period of 1997. Net sales for 1998 increased
$121.5 million, or 7.3 percent, to $1.779 billion, compared with $1.657.5 billion for 1997, a new
annual sales record for the company. Net income for 1998, before the extraordinary charge related
to the refinancing, increased to $90.6 million, or $1.51 per diluted share (a 36-percent
earnings-share increase), compared with income from continuing operations of $69.3 million, or
$1.11 per diluted for 1997.Pillowtex Corp., Dallas, announced earnings results for the fourth
quarter and fiscal year 1998.Net earnings for the fourth quarter ended January 2, 1999, increased
to $15.1 million, or $0.89 per diluted share, from a loss of $3.3 million, or $0.30 per diluted
share in the fourth quarter of 1997. Net sales for the fourth quarter increased 87.1 percent to
$391.6 million from $209.4 million in the comparable quarter of 1997.Net earnings for the fiscal
year ended January 2, 1999, increased 487.7 percent to $42.9 million, or $2.52 per diluted share,
from $7.3 million, or $0.66 per diluted share for the fiscal year ended January 3, 1998, due
primarily to the acquisition of Fieldcrest Cannon Inc. in December 1997.Fiscal year 1998 net
earnings, before a $1.5 million pretax restructuring charge, are $4.3 million, $2.57 per diluted
share. This compares to fiscal year 1997 net earnings, before a $6 million pretax restructuring
charge of $10.9 million, or $0.98 per diluted share.Net sales for the fiscal year 1998 went up
160.3 percent to $1.5 billion from $580 million in fiscal year 1997.

March 1999

Milliken Wins Industry Recycling Award

MillikenandCo., Spartanburg, S.C., was awarded the Best Industry Program Award from the Department
of Health and Environmental Control’s (DHEC) Office of Solid Waste Reduction and Recycling at the
1998 Recycling awards, held recently in Columbia, S.C.Commissioner of South Carolina DHEC Doug
Bryant presented the award. Milliken was honored for the adoption of a formal environmental policy
in 1990 that established a goal of zero waste. A strong commitment to this goal has resulted in
less than 5 percent of Milliken’s total domestic waste being sent to landfills. Milliken has worked
with customers, suppliers and DHEC to see that 95 percent of its waste goes to applications such as
reuse or recycling. In 1998, 43 of Milliken’s 55 domestic locations sent zero waste to
landfills.The company’s Earth Square carpet process renews and restyles old carpet, allowing re-use
by the customer, and eliminates tons of old carpet to landfills. The revolutionary process earned
the U.S. General Services Administration’s (GSA) first Evergreen Award for sustainable development
in 1998. (See “Fiber World News,” ATI
November 1998.)

March 1999

Ridgeview To Close Seneca Falls Facilities

Ridgeview Inc., Newton, N.C., announced that it plans to close its manufacturing facilities in
Seneca Falls, N.Y. Ridgeview has been manufacturing rugged outdoor and heavy-weight casual socks in
Seneca Falls since acquiring Seneca Knitting Mills Corp. in 1995.According to Ridgeview, it plans
to relocate a substantial portion of its Seneca Falls operations to its manufacturing facilities in
North Carolina.Approximately 160 hourly and salaried employees at Seneca Falls will be affected by
the closings.Upon completion of the relocation of these manufacturing operations to North Carolina,
we expect to realize substantial cost savings that will help us achieve our goal of returning
Ridgeview to profitability as soon as possible, said Hugh Gaither, president and CEO.

February 1999

Falling Yarn And Fabric Output Reported Worldwide

According to the state of trade report from the International Textile Manufacturers Federation
(ITMF), in the third quarter of 1998, world yarn production was down by 4.7 percent against the
preceding quarter as a result of global cutbacks.Europe registered a drop of 12.4 percent.
Reductions were moderate in the United States with a 4.2-percent drop. Asia had a 0.4-percent
decrease.ITMF reports that global yarn stocks were higher for the sixth consecutive quarter, with a
1.8-percent increase.Worldwide fabric production fell by a moderate 2.6 percent against the
preceding quarter, the reductions especially affecting Europe (-11.3 percent) and the United States
(-3.4 percent), whereas Asian output rose by 8.3 percent, driven mainly by Pakistan with a rise of
12.6 percent.Compared to the same period last year, ITMF reports that both global and regional
fabric output remained unchanged.

February 1999

Taking Stock Of Weaving Innovation

Weaving TrendsATI Staff Report Taking Stock OfWeaving Innovation
Technology and trade shape the industrys future.The U.S. textile industrys weaving sector
continues to be shaped by the twin forces of market demands and technological
developments. Market ForcesInternational trade in general and NAFTA in particular have also
shaped U.S. weaving (see Figure 5 and Figure 6). Large imports of apparel and apparel fabrics have
forced U.S. apparel fabric weavers into niches. In addition, as U.S. cut-and-sew operations move
south, the industry appears to be seeing some weaving going with it, particularly for
apparel.Industry observers have told ATI that they expect woven fabrics that require more cutting
and sewing will also move south, while fabrics that require very little cutting and sewing will
remain in place domestically. Labor costs alone, however, may not drive this shift. Higher electric
costs in Mexico and the Caribbean countries may limit the profitability of some textile processes
there, most notably air-jet weaving.One industry observer described the U.S. weaving industry as
having a top and a bottom, but no middle. There are segments like sheeting and denim, in which
economy of scale is everything. Then there are smaller specialty weavers making a wide range of
ultra-high-quality products. Technological FactorsAs weaving machine builders have continued
to offer faster, more versatile looms, the industry has invested to replace older, less productive
machines with newer, faster equipment. As a result, square yards produced per loom hour has just
about doubled since 1990, moving from about 17 square yards per loom hour to almost 40 square yards
per loom hour (see Figure 4).The biggest change in weaving equipment over the last two decades has
been the steady decline of the shuttle loom. In 1987, there were over 75,000 shuttle looms in place
in the United States.As of last year, only around 7,000 shuttle looms remain (see Table 1 and
Figure 1). The watershed year was 1989, the year in which the number of shuttleless looms in place
finally exceeded the number of shuttle looms. It is hard to say whether shuttle machines have truly
bottomed out, because they seem to have found some interesting niches such as vintage denim and
medical applications. However, it is safe to say that they are no longer a significant factor.From
1987 to 1998, the number of shuttleless looms (including air-jet, water-jet, rapier and projectile
machines) dipped from 63,500 machines to 59,800.This decline is testimony to a tremendous increase
in productivity, considering the number of shuttleless machines decreased and at the same time,
they replaced 90 percent of the shuttle looms. Machine NichesA look at shuttleless looms in
place as of the third quarter of 1998 shows air jets with 29 percent, projectile machines with 27
percent, rapiers with 23 percent and water jets with 8 percent (see Figure 3).Of these, air jets
are the fastest growing segment (see Figure 2). Totals alone do not give a complete picture. Each
of these technologies is strong in one or more niches.Air jets dominate sheeting and denim. The
versatility of air jets has increased dramatically over the years. They are now being applied in
diverse areas that would have been impossible a decade ago, including delicate filament styles and
terry pile weaving.Rapiers are major players in apparel, home furnishings and industrial fabrics. A
major strength of these machines is their ability to accommodate a wide range of filling
yarns.Projectiles remain in use in specialty and industrial areas. Their strength continues to be
in the extra-wide segment, where air requirements remove the speed advantage of the air-jet
machines.Water jets are restricted to polyester and nylon filament fabrics, but still show
growth. Dramatic Speed IncreasesLoom speeds creep ever higher. Air jets, for example, have
moved from speeds of 600 rpm to more than 1,000 rpm (at least on the show floor) in a dozen years.
Of course, actual mill speeds are usually somewhat slower and vary by fabric type and construction.
Rapier machines have sped up to the point that they now approach the low end of the air-jet
envelope, say 500 to 600 rpm.Increased weaving speeds mean that warps are consumed much more
quickly. Many weavers have gone to large warp beams to reduce the frequency of warp-outs. Very
large beams (1,600 mm) require new larger slasher heads and improved material handling and beam
storage.To get a clear idea of just how much the speed portion of the equation in weaving has
changed over a dozen years lets compare the machines exhibited at the 1983 Milan ITMA with those
shown at the 1995 Milan ITMA. Weaving 1983Picanol showed an air jet weaving corduroy at 684
rpm. Somets Master SM 92, a 190-cm rapier prototype, was running at 520 rpm.Sulzer Ruti showed a
demonstrator model of its L 5001 L1-1TNS 190 I air jet weaving a suit lining fabric at 720 rpm. The
companys F2001 flexible rapier machine was shown weaving a downproof fabric at 400 rpm.Tsudakoma
demonstrated a 360-cm air jet weaving a poplin fabric at 400 rpm for a weft insertion rate of 1,300
meters per minute. The company also showed a 190-cm loom weaving a taffeta at 700 rpm.Vamatexs P
1001 flexible rapier was shown running at 557 rpm. Picanol showed a Delta F-2-E 190 air jet
weaving a high-twist polyester crepe fabric at 900 rpm. An Omni-2-E 190 was shown weaving a lining
fabric with a viscose warp and acetate filling at 1,500 rpm.Somet showed its Mach 3 prototype
air-jet machine weaving two fabrics at once at 600 rpm for a filling insertion rate of 4,000 meters
per minute. The company also showed its Clipper air jet weaving a cotton downproof fabric at 1,200
rpm.A Thema 11 Excel rapier machine was shown weaving linen shirting at 610 rpm.Sulzer Ruti
unveiled its new M8300 prototype multi-phase air jet weaving print cloth at about 2,700 rpm for a
filling insertion rate of more than 5,000 meters per minute.Tsudakoma showed its ZAX-190-2X-4S air
jet weaving a cotton pinpoint oxford fabric at 1,700 rpm. A ZW405-140-1C-4S water jet produced a
nylon taffeta fabric at 2,000 rpm. The Flexibility FactorWhile speed increases have been
making the headlines over the years, many developments have boosted weaving productivity and
flexibility. These advances include quick-style-change systems, off-loom take-ups, inverter drives,
weft feeders and new monitoring systems.Quick-style-change systems changed the way mills look at
changing loom patterns.Vendors have taken three approaches: The modular machine system, where reed,
harness frames, warp-stop motion, warp beam and frame parts of the machine are disconnected as a
package; The quick connect/disconnect system for all the vital parts of a warp/style change are
used in conjunction with a suitable warp beam truck or other transport; and Modular construction
and specialized transport systems combined. This approach could be used in conjunction with servo
motors and robotic functions and might include automatic guided vehicles or overhead transport
systems for entire style packages.Each major textile exhibition brings more and more sophisticated
quick-style-change systems.The use of off-loom take-ups has grown to the point that a weaving mill
without them is remarkable. Replacement weft feeders are a common option. And loom monitoring
systems are also becoming commonplace.Computer integrated manufacturing (CIM) in the weave mill is
here to stay. Pattern data and machine settings can be downloaded directly to the loom from
workstations. In fact, ATI editors have toured several jacquard weaving facilities where the lines
between the computer design system, production planning system and quality monitoring system have
blurred to the vanishing point.The user friendliness of weaving machines has also improved
dramatically. Todays looms are often equipped with touch screen controls. Production and
maintenance data are displayed in real-time on a unit on the machine itself.If the machine stops,
the reason for the stop and downtime are displayed on-screen. On-board diagnostics tell the
technician which parts to check. This puts the information where it belongs on the production
floor.Electronic let-off and electronic takeup have become universal on weaving machines. Automatic
filling repair, available on air jets since the mid-90s, can now be found on rapier machines. In
the near future, weaving machine automation is expected to include functions like automatic
warp-stop repair, automatic cloth doffing, and perhaps even automatic filling supply systems.The
continuous improvements in spinning technology and yarn quality have also played a role in
increased loom speeds. As a result, fabric quality levels continue to rise, as loom stop levels
continue to decrease.Looking back over the last few major machinery exhibitions, there are many
innovations that have made weaving more productive. ATME-I ’93Dornier demonstrated its new
quick style-change system, further developed since ITMA 91 in Hannover, for the first time on an
air jet.Luwa Bahnson Inc. introduced its LoomSphere humidification system, giving weavers the
flexibility to custom fit conditions to individual looms.Picanol introduced its Delta and Omni
air-jet machines. Both were designed to use that companys rapid style-change system.Stli introduced
its new closed-shed dobby 4080 for industrial fabrics.Sulzer Ruti introduced its own version of a
quick-style-change system.Zellweger Uster exhibited its Delta 200 drawing-in machine for the first
time at a U.S. show. The Delta, since sold to Stli, offered a needed step forward in drawing-in
technology. ITMA ’95 MilanAlexander Machinery Inc. showed the latest version of its off-loom
takeups with a 48-inch lighted lower section for improved fabric inspection.Benninger AG introduced
a completely new weaving preparation system including the Ben-Matic automatic sectional warper, the
Ben-Direct beaming machine for beams with 1,250 mm flange diameter and the Ben-Vac system for
removing dust and fiber during warping.Grob + Co. AG demonstrated the new Optifil thread eye, which
reduced friction on warp yarns and allowed up to 30 percent more healds per frame.Staubli focused
its attention on its new CX 1060 jacquard head, which was shown controlling the shedding for a
30,000-end tapestry fabric.West Point Foundry and Machine Co. showed a new Model 951 warper deigned
to accommodate a 1,270 mm diameter section beam. The new model 950 beam winder for beams with
diameters of up to 1,600 mm was also introduced at the show. ATME-I ’96This show saw a number
of new weaving machine introductions. Nissan
(recently purchased by Toyota, see Supplier Notes pg. 65) introduced the NAX-100A air jet.
It emphasized productivity, improved fabric quality, cost effectiveness, greater reliability, and
easier access and handling.Nuovo Pignone
(purchased last year by Sulzer Ruti, see Sulzer Scales New Heights pg. 32) showed its new
Terry-Jet air jet. Its operation was based on two different beat-up positions of the reed with no
alternate movements of the warp.Picanol introduced its Gamma rapier machine. The Gamma had fewer
moving parts, gears, seals and no timing belts. It was designed for low power consumption and ease
of maintenance. Future ExpectationsTaken as a whole, these trends point to a U.S. weaving
industry with increasingly fewer looms producing more fabric per loom hour.Sulzer Textils M8300
machine may well point the way to the weave mill of the future if its patterning limitations can be
overcome. Patterning considerations aside, the M8300 still offers a compelling look ahead to new
weaving machine concepts.These include modular construction, fly-by-wire communications between
loom modules and weaving mills with entirely different plant layouts. The vertical orientation of
the M8300 with the cloth roll on top points toward overhead cloth roll transport. It is interesting
to note that Somets Mach 3 prototype also shared this vertical orientation with cloth rolls on
top.Certainly the weave mill of the future will be much more fast-paced, computer-integrated and
customer-driven than anything the industry has seen to date.

February 1999

Burlington Announces Reorganization Plant Closings

Burlington Industries Inc., Greensboro, N.C., has announced the reorganization of its apparel
fabrics business, a move designed to position the company for long-term success against growing
worldwide competition. According to the company, operations will be streamlined, and U.S. capacity
will be reduced by 25 percent to compensate for the continuing surge of low-priced garment imports,
primarily from Asia.The plan will result in the loss of approximately 2,900 jobs and the closing of
seven plants.We have been running our apparel fabrics operations at less-than-full capacity over
the last 9 to 12 months, anticipating that the surge of low-priced garment imports from Asia might
only be the temporary result of the Asian financial crisis, said George W. Henderson III, chairman
and CEO.We now believe that this situation is more permanent in nature and we must reduce our U.S.
manufacturing capacity accordingly and utilize only our most modern facilities in order to be
competitive.The plan affects only the apparel products segment of the company.The major elements of
the plan are: To create a fast, responsive organization with an improved cost structure, the
company will merge Burlington Klopman Fabrics and Burlington Tailored Fashions two businesses that
have complementary product lines and serve many of the same customers. Burlington Sportswear will
become a business unit within the Burlington Global Denim division. The company will close its
knitted fabrics and knitted shirts business. Burlington will reduce U.S. apparel fabrics capacity
by 25 percent and at the same time reorganize manufacturing assets to work together. Seven plants
will be closed: Mooresville, Forest City, Oxford, Cramerton and Statesville, N.C.; Bishopville,
S.C.; and Hillsville, Va. One department in Raeford, N.C., will also be eliminated. The cost of the
reorganization will be reflected in a restructuring charge, before taxes, of approximately $80 to
90 million in the second fiscal quarter, ending April 3, 1999, plus other expenses related to the
restructuring of approximately $25 to 35 million, before taxes, that will be charged to operations
over the next six to nine months.By reducing our overall capacity, using only our most modern
equipment, and concentrating on a value-added product mix, we will be able to run our U.S.
operations on a much more efficient and cost-effective basis, Henderson said.The combination of
streamlined and modern U.S. operations, together with our new state-of-the-art manufacturing
facilities coming on stream later this year in Mexico, will position the company well to compete on
a global basis.Henderson added: We deeply regret the loss of jobs, many of which are held by
long-term Burlington employees.

February 1999

Heritage Completes Purchase Of Sportswear Division

Heritage Sportswear LLC, Marion, S.C., has closed on the transaction to purchase the business and
assets of Signal Apparel Co. Inc.s Heritage Sportswear Division.Heritage Sportswear LLC is a new
company formed by Leslie (Les) and Fredric (Rick) Levy, two members of the senior management of the
Heritage Sportswear Division.Heritage was founded in 1951 by Herbert S. Levy and began operations
as Herbert Mills. Signal purchased the company in 1968 and changed the name to Heritage Sportswear.
The Levys remained with the company.Heritage manufactures and markets Joan Vass USA apparel, a
high-end ladies designer line, as well as its original product line of mens and boys sweaters,
fleece products and better knits for other apparel manufacturers and marketers.

February 1999

Sponsors