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PGI Plans Investments In West and East

April 4, 2005

Polymer Group Inc. will install spunmelt lines in the U.S. and China, reinforcing its position as a leading producer of the material in the world. The U.S. line, set to begin construction this month in Mooresville, NC, will meet customer demand within North America. This Reifenhäuser Reico IV spunmelt line will primarily serve the hygiene and industrial markets in North America. Commercial production is planned for the second quarter of 2006. In addition to creating products that are softer and lighter than those available from conventional technology, the new line will be capable of proprietary processes and will offer advanced treating systems.

Meanwhile, in China, plans are underway to build a new manufacturing facility in Suzhou dedicated to making spunmelt nonwovens for the medical market. The investment will make PGI the largest spunmelt producer in China as well as the country’s only vertically integrated producer of medical fabric. In addition to a multibeam Reifenhäuser spunmelt line, the new plant, located near Shanghai, will house a finishing line capable of providing customers with treated medical fabrics produced in a pristine environment that meet the highest quality standards. Construction is expected to begin during the second quarter of 2005 and commercialization is planned for mid 2006.

Also in China, PGI has unveiled plans to expand its technology base at its existing facility in Nanhai with the addition of an advanced chemical bonding line targeted to serve the hygiene and medical markets. The new line will allow PGI China to produce sub-layer products for the hygiene market and make hygiene and medical products currently only available from the company’s U.S. and European sites.

A clear leader in spunmelt technology, PGI operates production systems around the globe. Most recently, the company began construction on a new line in Cali, Colombia.

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