Berkshire Hathaway To Acquire Shaw Industries

Shaw Industries Inc., Dalton, Ga., has announced that Berkshire Hathaway Inc., Omaha, Neb., has
offered to purchase between 80.1 and 86 percent of the outstanding shares of Shaw Industries for
$19 per share in cash. The offer is subject to approval of Shaws Board of Directors and is not
subject to any financing contingencies.Robert E. Shaw, CEO and chairman of the Board of Directors,
Shaw Industries, and Julian D. Saul, president, Shaw Industries, together with members of their
immediate families, will each retain a minimum 5 percent ownership interest. Other shares not
purchased by Berkshire Hathaway would be owned by other members of management of Shaw Industries.
Shaw will continue to operate under its current management with the corporate headquarters
remaining in Dalton.The Shaw Board of Directors appointed a special committee of non-management
members of the Board, consisting of Thomas G. Cousins, J. Hicks Lanier, Robert J. Lunn and Roberto
Garza Delgado, to consider the offer and make a recommendation to the Board. No time frame was
established for the conclusion of the committees actions, but Berkshire Hathaway is prepared to
consummate the proposed transaction as soon as practicable, according to a spokesman for Shaw
Industries.Both Shaw and Saul expressed to the Board their support in principle for the proposed
transaction.

October 2000

American Fibers To Buy RAM Extrusion Filament Assests

American Fibers and Yarns Co., Cumming, Ga., announced that, subject to completion of true
diligence, it has agreed to buy certain assets associated with the operation of RAM Extrusion,
Dalton, Ga. The purchase includes the filament yarn-related business but does not include any
staple or carpet yarn.Frank G. Andrusko, president and CEO, American Fibers and Yarns, said, “Our
strategy is clearly focused on the expansion of our leadership position in olefin filament yarn for
home and commercial furnishings, apparel, automotive and industrial applications. The acquisition
of RAMs assets dovetails nicely with our current market and customer base and also supports our
growth plans.”

October 2000

Celanese Acetate And Sapona Develop Celanna Yarns

Sapona Manufacturing Co., Cedar Falls, N.C., and Celanese Acetate, New York City, have announced
the joint creation of new Celanna brand yarns that will be available globally. Celanna is an
air-entangled combination of cellulose acetate with various other fibers, resulting in a yarn with
enhanced physical properties. Garments made from Celanna blends offer comfort and performance; feel
smooth against the skin; and have a flattering drape and a soft, fluid hand, according to Sapona.
Initially, the companies will offer fabric blends of Celanese acetate and nylon fibers. Easy-care
Celanna blends open new markets for acetate, such as seamless bodywear, because they are washable
in some constructions. Other end-use markets for Celanna knits and wovens include tailored mens and
womens sportswear, dresses, sweater knits and upholstery.”Under agreement with Celanese Acetate,
Sapona will be the sole source for several acetate blends under the Celanna trademark. Sapona has
put forth extensive development effort and capital expenditure to produce new Celanna quality
yarns,” said Dean Lail, president, Sapona. “Together they are developing yarns, fabrics and
processes that will help speed up the introduction of a broad range of new knit and woven apparel
products.”

October 2000

Interface Acquires Teknit Ltd

Interface Fabric Groups, Guilford, Maine, announced that outstanding shares of United Kingdom-based
Teknit Ltd. have been acquired through Interface Inc. Teknit will operate under the Interface
Fabrics Group umbrella. The acquisition provides the Interface Fabrics Group with the ability to
diversify its current fabric product offering and enhance its position in the upholstery fabric
market.”We believe the technology developed by Teknit represents numerous benefits to the
upholstered furniture industry, and we look forward to developing and expanding this business as
part of the fabrics group,” said Brian L. DeMoura, president and CEO, Interface.

October 2000

Customer Wants Level Playing Field


T
ere continues to be little rhyme or reason for the conditions in pricing of open-end (OE)
yarns. One OE spinner said, “We have orders to keep us running and we are shipping everything we
make, but there are no margins to speak of. Our contracts are locked in for the rest of the year,
but next year is going to be interesting! The industry as a whole is going to have to start quoting
higher prices — not a lot but a legitimate increase just so we can make a little money. One of my
customers told me that he wouldn’t mind paying $1.50 per pound for a good l0/1 yarn — as long as
everybody else was paying about that same price.”

Just after he remarked about the possibility of higher prices next year, he was reminded
that he had been saying that for several years. His comment: “Well, we have to have a positive
attitude about it. But it appears to me that open-end spinners are afraid of losing a pound of
business, so they quote these ridiculous prices. One spinner told me that he had heard of an 18/1
OE cotton yarn sold as a circular-knit yarn for 89 cents a pound plus — now get this — plus the
cotton rebate.

When something as illogical as this is done, you wonder if they ever look at a cost sheet.
Has this crowd learned their lesson yet?” The consensus was — No. He also mentioned that another
factor in the pricing problem is the problem his customers are having with credit. They are
apparently filing for Chapter 11 in increasing numbers.


OE Markets Go Crazy


Several spinners classified the OE market as “crazy.” One spinner said, after quoting asking
prices for this type yarn, “You could probably go out and buy a 16/1 cotton yarn for 90 cents a
pound. We are running full, but at the end of the week, you ask yourself ‘was it worth it?’” The
consensus here, too, was — No!

Another said, “All markets are generally slow, especially those in knitted outerwear and
domestic and home furnishing weaver’s fabrics. We attribute this to an inventory adjustment and
expect an up-turn soon. Retail sales have been disappointing this past summer. All summer business
is slow, but this one has been especially bad, particularly in open-end yarn.”


Brighter Notes


Looking on the brighter side, the Yarn Market finds spinners of ring-spun yarns continue
having their place in the sun. All of their markets are “great — wide open.” Not only are the
orders coming in, but orders are backlogged. Ring-spun inventories are non-existent. One spinner
commented, “We can’t afford an inventory because we are running so far behind. The biggest catalyst
to this was the increase in denim orders.” In other words — denim is back.

There is more good news. One respondent said, “We are finally beginning to see some
reconciliation to the over-supply of open-end yarn. We are taking some OE yarn machines out, and
other spinners are taking out the older, more expensive-to-operate machines as well.” So maybe
spinners will finally see some relief from the pricing dilemma they have complained about for
years.

One spinner commented that he had already picked up some small orders related to the
Caribbean Basin Initiative (CBI). He also sees this as a continuing trend. His optimism is shared
by many in this diversified industry — from synthetic spinners to texturizers, including yet
another spinner who said, “We have had a few orders for this business, but we are fielding a lot of
inquiries concerning CBI yarn business. This area is very active! We are also exporting to Mexico
and the growth here, while not as dramatic as it was initially, continues at a slower rate. Of
course, our exports are offset to some extent by imports from Mexico.”

Texturizers are sounding more like OE cotton yarn spinners every day — volume is good across
the board, but margins are poor. “We are really wrestling with pricing,” commented one texturizer,
“and our biggest problem is with imports.” Although overall volume is good, there is concern about
bottom-weight apparel goods. Orders seem to be dropping off, and a down-turn is expected in the
fourth quarter.

The volume of inquiries from CBI areas is an indicator that help is on the way to
beleaguered spinners.

As the fellow on the Murphy Brown show might say “Alls I know, you just have to keep on
keeping on.”

ymChart_861

October 2000

Honduran Textile Industry Celebrates CBI Legislation

The Honduran textile industry hosted a reception in San Pedro Sula, Honduras, to celebrate the
passage of CBI parity legislation, according to Peter Hegarty, president, American Textile Export
Co.The event was organized by The Honduran Counsel for Private Companies, The Honduran Association
of Maquiladores, The Chamber of Commerce and industries of Cortes, and The Free Zone Association of
Honduras.”The Trade and Development Act of 2000 will certainly enhance trade between the United
States and Caribbean Basin countries and, in our view, provide a much-needed boost to domestic yarn
spinners, among others,” said Bud Willis, president, Tuscarora Yarns, Oakboro, N.C. “To best take
advantage of the opportunities this legislation offers, American companies need to quickly get to
know their potential Caribbean Basin partners and any unique requirements they may have.”

October 2000

Southern Weaving Recapitalized By Blue Point

Southern Weaving Co., Greenville, S.C., has been recapitalized for growth and acquisitions by Blue
Point Capital Partners, Charlotte, N.C.”We are excited about the opportunities that this business
partnership creates,” said Rod L. Grandy, CEO, Southern Weaving. “By recapitalizing, we are now
able to facilitate continued strategic growth through acquisitions. With Blue Point Capital
Partners, we have found a partner that uniquely understands our manufacturing environment and adds
considerable strategic insight to our plan to broaden the business via acquisitions.”

October 2000

CCMI Expands Testing Service Internationally

The Boston-based Cashmere and Camel Hair Manufacturers Institute (CCMI) has expanded its
fiber-content testing service to retailers and suppliers around the globe.”With the increased
global demand for cashmere and other luxury fibers and recent sharp increases in raw material
prices, our industrys greatest challenge is to maintain the integrity of the cashmere label,” said
Karl Spilhaus, president. The testing service is designed to help companies verify the
fiber-content claims of goods they plan to purchase or sell, through a microscopic content test of
samples.

October 2000

DB Investor Acquires Trevira

DB Investor, the Industrial and Private Equity Holding Arm of Deutsche Bank, is acquiring
Germany-based Trevira GmbH.”Under its new owner, DB Investor, Trevira will be launching, with even
greater aggression, a number of innovative products onto the market, It will further extend the
Trevira brand and, in addition, tackle markets outside Europe with increased vigor,” said Ulrich
Huwe, CEO, Trevira.

October 2000

Cationic Pretreatments Of Cotton

Cationic Pretreatments Of Cotton
Fiber treatment before dyeing reduces environmental pollutants, increases dye
affinity.
 Despite the widespread acceptance and demand for cotton apparel, there are
still some significant problems remaining with the wet processing of cotton fabrics.Considerable
amounts of harsh chemicals and hot water are required to properly desize, scour and bleach cotton.
Once the fabrics have been adequately prepared, dyeing processes for cotton suffer from some
serious environmental difficulties. The most convenient dye classes for cellulose direct dyes and
fiber reactive dyes both require significant amounts of electrolytes to achieve even reasonable
exhaustion rates. These water-soluble anionic dye molecules do not have strong enough affinities
for the fiber without the presence of up to 100 grams per liter (g/L) of either sodium chloride or
sodium sulfate in the dye bath. Once exhausted to the fiber, direct dyes have only fair
washfastness with after-treatments. Since fiber reactive dyes will react with water as well as with
the cotton fiber, as much as 50 percent of the dye is hydrolyzed and must be scoured from the
fabric in order to reach acceptable fastness levels.A fiber treatment applied before dyeing that
would leave the cotton fibers with cationic charges would seem to be a possible solution to both of
these problems. D. M Lewis and X. Lei have reviewed this approach1, and recent work has used
cationic pretreatments to achieve union dyeings of cotton/wool blends2,3.Until the mid-1980s, use
of pigments to color textiles had been generally limited to pad applications because of the
inability of pigments to exhaust to fibers. Since that time, a number of researchers have looked at
cationic pretreatments of fabric prior to exhausting pigments4-6, and the process of exhausting
pigments to garments has become important commercially7,8. 

Figure 1. Diagram of process by which cationic polymers forma layer of cationic charges when
applied to fiber surfaces.

Figure 2. Diagram of process by which reactants modifythe fiber by forming covalent bonds
with the cellulosic fiber. Chemistry Of Cationic PretreatmentsThere are two fundamentally
different types of cationic pre-treatments in use. The first type are cationic polymers that form a
layer of cationic charges when applied to fiber surfaces (See Figure 1).The second category of
cationic pretreatments involves reactants that modify the fiber by forming covalent bonds with the
cellulosic fiber (See Figure 2). The presence of cationic charges on or in the fiber causes anionic
materials such as direct and fiber reactive dyes to be strongly attracted to the fiber and to be
held much more tightly than without the cationic charges.Many types of polymeric cationic
pretreatments have been developed. Some of the chemistries employed include polyacrylates4,
polyimidazoles, polyamideepichlorohydrin resins1, and polyamino condensates2. Their actual
compositions for the most part are proprietary.Reactant cationic pretreatments are usually small
molecules that can form covalent bonds with cellulose. Two examples of chemicals that have been
studied are choline chloride4 and N-(3-chloro-2-hydroxypropyl) trimethyl-ammonium chloride9. 

Figure 3. Diagram of modified fiber formed when choline chloride is reactedwith DMDHEU and
catalyst in the presence of cotton. 

Figure 4. Diagram of cationically modified cotton when
N-(3-chloro-2-hydroxypropyl)trimethylammonium chloride is reacted with cellulose under alkaline
conditions. 

Figure 5. Diagram of end result when cationic pretreated cotton is pigment
dyed. Application Of Cationic PretreatmentsCationic pretreatments have been applied to
textiles in two general ways: padding and exhaustion. Polymeric pretreatments have been
incorporated into durable press formulations2,4 applied to fabrics prior to dyeing. Garments can be
treated with cationic polymers with an exhaustion procedure carried out just prior to dyeing5-8.
The efficiency of this exhaustion treatment is directly affected by process parameters such as pH,
temperature, time and agitation level.The goal of exhausting cationic polymers is to provide a
uniform layer of polymer on the fabric surface. Excessive buildup of polymer on the interior
machinery surfaces can occur if the exhaustion process is not carefully controlled. The surface of
the fabric should be clean and free from contaminants such as wax and size in order to assure a
proper pretreatment.Reactant pretreatments have been successfully applied to fabrics by pad
applications3,4,9,10. At present, the most economical reactant pre-treatments are small
water-soluble molecules that do not readily exhaust to cotton fabric. As a result, exhaustion
techniques have not been utilized as extensively as padding procedures. Recent patents, however,
demonstrate continued interest in application of cationic reactants to garments11,12.Cationic
reactants have been attached to cellulose by several mechanisms. For example, choline chloride has
been reacted with DMDHEU and catalyst in the presence of cotton to give a modified fiber according
to the scheme shown in Figure 34.N-(3-chloro-2-hydroxypropyl) trimethylammonium chloride has been
reacted with cellulose under alkaline conditions to yield cationically modified cotton directly10
(See Figure 4).In all cases, uniform application of the cationic reactant to the fabric prior to
chemical reaction with the fiber is essential. Unlevel dyeings are the inevitable results of uneven
applications of cationic pretreatments. Pigment Dyeing Of Cationic Pretreated CottonExhaust
dyeing of cationic pre-treated cotton with pigments is a three-step process:application of
pretreatment (exhaust or pad);exhaustion of pigment; andexhaustion of a binder.Pigments intended
for exhaust application to cationically pretreated fabrics are designed to be anionic or nonionic
when dispersed in water. The exhaustion of these pigments is controlled not only by the pigment
particles charge, but also by the pH and temperature of the dye bath, the length of exhaustion
cycle and the agitation level in the dyeing machine.Polymeric binders are used to increase the
durability (washfastness and crocking) of the pigment-dyed fabric. These binders are usually
cationic in nature and are exhausted to the fabric by controlling treatment bath pH and
temperature.The end result of this process is a multi-layered structure that can be represented by
the diagram shown in Figure 5.The colorfastness of pigment-dyed garments is strongly dependent on
the interactions among pretreatment, pigment and binder. Considerable development work is often
necessary to arrive at a commercially acceptable product.A typical pigment garment-dyeing procedure
is given in Table I. The procedure can vary depending on the machinery used and the specific
pretreatment, pigments and binder chosen. Chemical suppliers will provide the actual
details.  Dyeing Of Cationic Pretreated Cotton With Anionic DyesAdding cationic charges
to cotton fiber greatly increases the exhaustion rate and exhaustion level of anionic dyes.
However, this increased affinity can lead to unlevel dyeings unless the dyeing process is carefully
controlled. The uniformity of the dye strike is influenced by the pH and temperature of the dye
bath and the rate of addition of the dyes. Salt is not required for complete exhaustion, and much
higher color yields (approxi-mately 25 percent higher) are seen. Afterscouring of reactive dyes is
usually not necessary, and direct dyes do not require an aftertreatment to achieve acceptable
washfastness. A typical procedure for dyeing cationic pretreated cotton with anionic dyes is
outlined in Table II. SummaryPolymeric cationic pretreatments for cotton offer several
advantages for the garment wet-process industry. Pigments can be exhausted to garments, allowing
styling options not easily obtained by other processes. Existing equipment can be utilized for
these pretreatments because the polymers exhaust to the fabric surface. Disadvantages to be
considered are the fact that the procedure is a complex multi-step process, and often the
lightfastness of anionic dyes is adversely affected by the pretreatment.Reactant cationic
pretreatments for cotton also offer several advantages for the garment wet processor. Fiber
reactive dyes can be used without salt, and the amount of unfixed dyes is greatly reduced.
Significant energy savings can be realized by the reduction of the amount of hot water needed for
the process. Currently, however, the most efficient way of applying reactant cationic
pre-treatments to garments is a fabric application in which pretreated sewing threads are used with
pretreated fabrics during garment manufacture. In addition, the dye procedure must be carefully
controlled to ensure level dyeings.As the reduction of pollutants in textile wastewater grows in
importance, interest in the use of cationic pretreatments for cotton can be expected to grow
also. References1Lewis, D. M. and X. Lei, Textile Chemist and Colorist, Vol. 21, No. 10,
October 1989, 23.2Cardamone, J. M., G. Bao, W. M. Marmer, R. L. Dudley and J. Bulan-Brady, Textile
Chemist and Colorist, Vol. 28, No. 12, December 1996, 19.3Cardamone, J. M., W. M. Marmer, E. J.
Blanchard, A. H. Lambert and J. Bulan-Brady, Textile Chemist and Colorist, Vol. 28, No. 11,
November 1996, 19.4Harper, R. J., Jr., Journal of Coated Fabrics, Vol. 18, No. 4, April 1989,
234.5Angliss, I. and R. Blair, Australasian Textiles, Vol. 10, No. 4, July/August 1990, 56.6Chong,
C. L., S. Q. Li and K. W. Yeung, American Dyestuff Reporter, Vol. 81, No. 5, May 1992, 17.7AATCC
Garment Wet Processing Technical Manual, 1994, 106.8Cotton Dyeing and Finishing: A Technical Guide,
Cotton Incorporated, 1996, 74.9Rupin, M., Textile Chemist and Colorist, Vol. 8, No. 9, September
1976, 54.10Patton, R. T., J. D. Kitchens and D. M. Hall, U. S. Patent 5,006,125 (1991).11Hall, D.
M., T. M. Leonard, C. D. Cofield and H. W. Barrow, U.S. Patent 5,330,541 (1994).12Hauser, P. J. and
S. G. Helfrich, U.S. Patent 5,667,533 (1997).
Editor’s Note: Peter Hauser, Ph.D., is an associate professor of textile chemistry at North
Carolina State University College of Textiles, Raleigh, N.C. His research focuses on
high-performance chemical finishes for enhanced value textiles, indigo dyeing and denim garment wet
processing, new textile processes to reduce costs and energy use and pollution associated with wet
processing. Dr. Hauser holds several patents. He can be reached by telephone at (919) 513-1899 or
by e-mail at peter_hauser@ncsu.edu.The original text of this article was presented at the Emerging
Technologies and Trends in Garment Wet Processing Symposium, New Orleans.

October 2000

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