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From the President Our 1989 financial results were depressed from the levels we reached in the last several years; this was caus ed by depressed market conditions for woven greige goods and raw material price increases which were complete ly absorbed by the Company. However, this did not deter us from investing over $15,000,000 for new machinery and equipment in 1989, once again demon strating our focus on the future. Cur rently, market con ditions are soft, especially in the knit area, and prices have not re bounded to absorb last years’ cost in creases. Overall, we expect 1990 to be a better year, finan cially, than 1989. Our Company made much pro gress in the last decade. As the 1990’s present unprecedented challenges, our ability to compete will depend on our preparations for the future. Companies that rely on obsolete ways of doing business will not survive. New attitudes will fuel the ideas for the innovation necessary to provide the skills which will be required in our Company. Customers who buy our products will expect quality at levels virtually non existent a few years ago. Our invest ment in quality production equipment will enable us to compete as a world class manufacturer as pounds produc ed per employee reach record levels, quality levels improve and customer service become a major priority. As I observe the modernization pro gram underway in Clinton Plant No. 2, I am pleased with the progress being made. The installation of our 160 Picanol weaving machines is nearing completion. A project of this size alters job assignments and creates inconve niences for many. I want everyone in volved in this project to know that I ap preciate all of the effort, hard work and willingness to cooperate that has prevailed among our employees during this project. Our fiber handling, yarn preparation, weaving and cloth handling equip ment require new skills in order to operate at our ex pected production and quality levels. I am very con cerned about the high level of medical accidents we are having in our plants. Very few things can be more important than taking time to do a job correctly and safely. The fre quency of our on-the-job medical ac cidents justifies a constant accident prevention attitude by all of us. Safety needs our immediate and continuing attention and must rank along with quality and productivity in the perfor mance of our jobs. The success of our Company depends on all of us working together to make a quality product which we can sell pro fitably at a competitive price. Our plans for the future of our Company are more exciting and challenging than the successes we have enjoyed in the past. Thank you for you efforts and contributions. r G. Thaddeus Williams Clinton gets job creator award Claude Crocker (L), Senior Vice President of Clinton Mills, Inc., is shown i liv ing a special job creator award from U.S. Assistant Secretary of Labor Robert T. Jones. Clinton Mills was one of 80 South Carolina Employers recently honored in Columbia for “contributing significantly to the state’s economy” through job creation and cooperation with government in employment and training programs. The awards were presented by the S.C. Employment Security Commission, the S.C. State Development Board, and the S.C. State Board for Technical and Com prehensive Education. page 2 - Cloth Maker Plant Manager Gregg Link serves Raymond Williams as he nears end of Employee Appreciation barbecue serving line. Employee appreciation dinner The Company showed its appreciation for all the contributions employees made during the year by providing Employee Appreciation Dinners during May. Clinton employees were treated to the traditional barbecue hash, pork, slaw, rice, and other items as plant supervision served employees filing through the line. The barbecue was a welcome change to the day to day food items and pro vided the Company an excellent opportunity to say “Thank you.” Some employees'were amazed at the speed with which individuals were serv ed. The semi-buffet system allowed each individual to get all he cared to eat while supervision was on hand to pass out plates, serve, pour tea, or to help anyone needing assistance. Audrey Bolick, Virginia Traynham, and Sara James are delighted to have Weaving Superintendent Joe McCall participating in the Employee Apprecia tion Meal.