Aquafil, Carvico Form JV To Relaunch XLA Stretch Fiber

Two Italy-based companies — Aquafil S.p.A., a producer of nylon 6 for carpet applications and a
producer of nylon, microfiber and polypropylene yarns for apparel applications; and Gruppo Carvico,
a manufacturer of warp-knitted stretch fabrics for swim-, sports- and underwear — have formed a
50/50 joint venture (JV) under the name XLAnce Fibre Italia to acquire assets related to XLA
polyolefin-based soft-stretch fiber from Midland, Mich.-based The Dow Chemical Company and its
affiliates and to restart production of the fiber.

Dow introduced its DOW XLA™ fiber technology in 2002, and apparel featuring the fiber
appeared at retail in 2004. XLA was touted for its ability to withstand extreme chemicals and
temperatures up to 220°C, among other processing conditions; but Dow made a strategic decision to
focus on other businesses in its portfolio and ceased investing in the technology. The company
announced in 2010 that it would stop production of XLA and shutter its manufacturing plant in
Tarragona, Spain, upon fulfillment of all outstanding orders (See ”
Dow To Shut Down XLA
,” www., May 25, 2010
). XLAnce Fibre Italia has acquired the
trademarks associated with XLA fiber; an exclusive license to use the technology; and the XLA fiber
production lines, machinery and equipment located in the Tarragona plant. The company will move the
equipment to a site in Italy and expects to begin production in the third quarter of 2012.

“As a leading stretch fabric company our interest into the possibility to resume XLA
production was natural, since XLA has been one of the very few significant new fibers in our
business in recent years, and our partnership with Aquafil, whose fiber technology knowledge is a
key requirement, made this project possible,” said Laura Colnaghi Calissoni, chairman, Carvico. “We
will work to ensure that the new company, which will have the full freedom to operate independently
on the market, can offer innovative solutions in many applications where the use of fiber XLA can
add value.”

“Aquafil’s consolidated knowledge within the polyamide fibers segment, in particular with the
innovative Econyl recycled yarn, and within the microfiber and polypropylene segment with the
Dryarn hi-tech fiber, will be essential to revive this promising elastomer with undoubted
synergies,” said Giulio Bonazzi, chairman, Gruppo Aquafil. “The transfer of the production to Italy
will also bring the added value of the closeness to what is still renown as the Textile innovation
and creativity world center, both for fashion and sportswear brands.”

December 20, 2011