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WINTER C L ISSUE 0 T 9 9 1 VALITY RST COMPANY PUBLICATION THAD WILLIAMS In looking back through the year, I think we can all be proud of what we have accom plished . In a year that has seen many textile com panies curtail operating schedules, lay off large numbers of em ployees and some companies even close down plants, we have operated our plants with very little disruption. While our selling prices declined during 1991 and our operating costs rose, we were still able to com pete successfully in our markets because of the quality of our products. I am optimistic about the outlook for 1992. Our sales position looks strong at this time. However, it is important for us to work together in further implementing Quality First in 1992 to derive more of the benefits it has to offer to you and to the Company. During 1992, we will commit to capital investments in new machinery and technology exceeding $25 million. These investments will help to make us a bet ter company, but investment alone is not enough, we need your con tinuing commitment to do your job the very best you can. Over the last few decades Clinton has grown from a three plant opera tion to seven plants serving a variety of markets with many different fabrics and laces. This philosophy of entering new markets and products in a deliberate, considered manner has served us well. In following this approach to expansion, the parent of Clinton Mills, CMI Holdings, Inc. is participating in the acquisition of Chatham Manufacturing Com pany in Elkin, North Carolina. Chatham offers our corporate group the opportunity to diversify our product offerings and to enter markets such as upholstery fabrics for automotive, commercial and residen tial applications and blankets and mattress pads for bedding. We believe this acquisition will be completed within the next few months. It of fers us many challenges, but many opportunities, and I am confident having Chatham a part of our corporate group will be beneficial to all of us in the years ahead. While 1991 has presented us with many challenges, we have met them successfully. My thanks go to you! During this Christmas Season, we all have much for which to be thankful. Personally, I thank you for your dedication and commitment and extend to each of you and your families a very Merry Christmas and a Happy New Year. — Claude A. Crocker Martha Simmons Crocker and Simmons Retire ith a combined total of over 80 years of loyal / and dedicated service to Clinton Mills, Claude A. Crocker and Martha Simmons announce their retirements. Crocker officially retired on September 30, 1991 and Simmons will retire on December 31, 1991. Mr. Crocker began his career with Clinton Mills in 1948 following a successful career as a pitcher with the Brooklyn Dodgers baseball organization. Crocker states, “My adult working career with Clinton and Lydia Cotton Mills began at Christmas time in 1948 when then President, Mr. PS. (Si) Bailey, offered me the opportunity to return home as Clinton and Lydia Cotton Mills’ first Athletic Director. In addition to these duties, one of his conditions was that I teach the 5th, 6th and 7th grades at Lydia’s Providence School, of which I was a graduate. Also, I was to become head baseball and basketball coach at Presbyterian College and a member of the pitching staff, later player-manager, of the fast Central Carolina League 1950 pennant winning Clinton Cavaliers.” In the fall of 1950 Crocker was asked by Mr. Bailey to establish and direct Clinton Mills’ Personnel Department. During the early 1950s Claude Crocker joined J.P. Stevens Company as an Industrial Relations Director but returned to Clinton Mills in 1955 as its Director of Industrial Relations. In 1977 he was elected by the Board of Directors to the position of Vice President of Industrial and Public Relations, and in 1990 was elevated to Senior Vice President. In summarizing his career Crocker says “Over these years under the enlightened and progressive leadership of Clin ton Mills’ management teams, I have been privileged to participate in, and be a beneficiary of many positive changes and improvements resulting in a higher level of respect of the individual and a better quality of life for all Clinton employees, an enhanced lifestyle far superior to that of the 1930s and early 1940s. “The modernization of Lydia and improvements in the community in 1949 began a dynamic decade of progress and set the direction for the future. Expansion and product diversification, from three plants in Clinton to 11 plants in four states in the 70s, were evidence of a strong commitment to growth.” Crocker adds, “During these years, we’ve seen consistent improvements in wages, environmentally safe working conditions, and life, health and dental insurance plans. Raid holidays, increased vacation time, and retirement plans are major additions among the benefits enjoyed by Clinton employees. Progressive personnel policies and programs, including equal employment opportunities, have also been established at Clinton during my years here. These changes, when combined with medical clinics, continuous service awards and education assistance programs, establish Clinton as an industry leader and a caring corporate citizen.” During his distinguished career Claude Crocker has been an outstanding leader within the textile industry, his com munity and the State of South Carolina. He has been recognized for his service to the South Carolina Society of Safety Engineers and the South Carolina Textile Manufacturer’s Association where he served as Chairman of both the Person nel and Public Relations Divisions. Crocker was instrumental in establishing Clinton Mills as a leading textile self insurer. He served on the South Carolina Worker’s Compensation Advisory Committee under Governors Russell, McNair, West and Edwards. He has been ac tive in the Clemson University School of Industrial Management and Textile Science Advisory Committee, the South Carolina Chamber of Commerce Board of Directors, and is a former member of the South Atlantic Council of Industrial Editors. In 1984, Governor Richard Riley presented Crocker with the Order of the Palmetto, one of the highest honors one can receive for service to his state. (continued on back page) Company Makes Capital Investments at Clinton and EFA linton Mills, Inc. has committed to purchase over $25 million in new equipment and technology to include addi tional Picanol Air Jet Weaving machines, says CEO Thad Williams. “The new, high speed machines will expand our quality, production and styling capabilities at the Bailey Plant,” he added. “Our current plans call for the relocation of the Bailey Plant Sulzer PS4000 weaving machine to Plant No. 2 to replace a portion of the fly shuttle looms. Plans for Sulzer PS3600 machines are still under consideration. The first Picanol looms will not arrive until the last part of 1992 and the modernization and installation projects in volving this equipment will extend into 1993. Sulzer PS4000 and Sulzer PS3600 weaving machines were installed in the Bailey plant in 1984. Ted Davenport, Clinton’s Vice President of Manufacturing noted that the new machinery represents a very large in vestment and is essential in our quest to maintain the goals and objectives of our Company’s Quality First process. “While new equipment is being installed, is it important that we maintain all of our production equipment so that our quality and production levels will continue to be improved.” Joe Gorga, Elastic Fabrics of America’s President, states “EFA plans to make capital investments in new machinery and upgrading of existing equipment primarily in dyeing and finishing. These investments will help us to successfully penetrate markets outside our traditional area.” George Marshall Honored as Textile Citizen of the Year Finalist %, eorge Edward Marshall, Plant No. 2 Spinning Technician, was honored as one of the top ten finalists for the South Carolina Textile Citizen of the Year Award. Marshall was honored in a ceremony at the State House on September 25th as Governor Carroll Campbell presented awards to those textile employees who had made major contributions to their communities. Following the awards ceremony, Marshall and other textile citizen finalists and industry representatives toured the State House, had lunch at the Capital City Club, and visited the state museum. In submitting Marshall’s nomination to the South Carolina Tex tile Manufacturer’s Association, Clinton Mills recognized the nom inee’s service as Vice Chairman of School District 56 Board of Trustees. Marshall takes an active leadership role in supporting education. He is the recipient of numerous honors for his participation in the South Carolina School Board Association and his membership in the Parent Teacher Organization. Marshall makes a significant contribution to his home community of Joanna by his active membership in the volunteer fire department where he serves as both Captain and Chaplain. He is a member, past President and past Director of the Joanna Lions Club, and a recipient of the Lions Club Citizen of the Year Award. He has also been recognized as Citizen of the Year by the Joanna Moose Club and is a past recipient of the South Carolina Parks, Recreation and Tourism Family of the Year Award. George has been active in many programs in the Joanna First Baptist Church and has been active in scouting, serving as Scoutmaster, Assistant Scoutmaster and other scouting positions. An Eagle Scout, he received the Silver Beaver Award in 1982 and has been honored many times for his 32 year involvement in scout programs. In textiles, he has been an active participant in the Textile Festival. Gov. Campbell congratulates George Marshall.