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SPRING C L ISSUE 1 O T 9 9 2 THAD WILLIAMS The year 1991 was a difficult year for the U.S. economy. Unemploy ment was high and plant curtailments common, but we were able to operate our weaving plants at full capacity and there was very little down time at our knit plant. This accomplishment is a tribute to our associates from the New York sales office to the plant level, and I ex tend my thanks to you for a job well done. Our sales volume was up slightly over 1990, but our operating income was down, due to lower selling prices and increased costs. 1991 marked the real beginning of our Quality First process - which means more associate involvement in carrying out our mission to become the preferred supplier in all of our markets. Our Quality First process will take a quantum leap in 1992. This year Quality First will expand in such non-manufacturing areas as Human Resources, Finance and Administration, and Sales and Marketing. Also, we expect many more associates at all locations to become involved in the Quality First process through the formation of new Quality First Action Teams (QFAT’s). The Quality First philosophy will be incorporated into our safety and accident prevention programs as well. While the outlook for our business in 1992 is bright, we must con tinually strive to improve in every aspect of our operations. Continuous improvement is essential if we are to maintain our competitive posi tion in a world market place. The results achieved by our Quality First Action Teams and associate involvement have been excellent. However, we must continue to im prove the cost effectiveness of every thing we do. Weare still faced with escalating costs of doing business, from the price of raw materials to the cost for providing medical benefits. We must develop new methods, techniques and processes that will reduce our costs and at the same time continue to improve the quality of our products and services. I am convinced that through the Quality First process, and your involve ment, we can meet this challenge. I take this opportunity to welcome Chatham Manufacturing Inc. into our corporate group, and to thank all of the people at Chatham for the welcome we have received. Chatham has a new President — Tony Raffo. Tony has broad experience in manufacturing, marketing and human resources and will bring to Chatham the dynamic leadership required for success in the future. All of us extend to him our best wishes. OfW— Chatham Joins CMI Team n February 14, 1992 Chatham Manufacturing, Inc. became one of the CLINTON group of companies. Thad I Williams, Clinton’s President and Chief Executive Officer, stated “We are very excited and pleased with this association. Chatham’s background, culture and histoY are very similar to Clinton’s and we believe that because of this the transition will be smooth and that Chatham and Clinton will grow and prosper because of it.” Williams also said “Chatham offers us the opportunity to d versify and participate in such new markets as upholstery for the automotive and furniture industries and bedding materials such as blankets and mattress pads.” CHATHAM MANIFACTURING, INC. Chatham Manufacturing, Inc., Surry County’s largest employer, is situated in Elkin, North Carolina, just 20 miles south of the B1 ue Ridge Parkway. Over 2,000 associates from Elkin and surrounding communities take part in the many processes involved in its operations. Elkin is a small town of approximately 3,700 residents, providing a closely knit working group who enjoy the hospitality of small town living while benefiting from being only 30 minutes away from Winston-Salem. The local population includes over 1,200 Chatham retirees. A few miles south of Elkin, Interstate Highway 77 connects with Interstate 40, providing easy access to many urban areas. (Continued on Flap) Increased Safety Awareness Decreases Lost Time Accidents I I n 1991, Clinton Mills’ Clinton weaving operations achieved a 25% reduction in medical accidents and a 37% L—reduction in lost time accidents, largely as a result of increased participation of employee safety teams in the total safety program. Departmental shifts working January 1, 1991 thru December 31, 1991, without a medical accident were Plant No. 1, carding and spinning second shift and fourth shift; weaving, third shift; and cloth room, second and fifth shift. In Plant No. 2, airjet weaving and slashing, fifth shift; and the cloth room, second and fifth shift recorded twelve con secutive months during 1991 without a medical accident. Carding fifth shift was also accident free. In the Lydia Plant, all three shifts in carding went the entire year without a medical accident. In spinning, the first shift achieved the entire twelve months accident free. Weaving 440, third shift was without a medical. All three Bailey Plant carding department shifts, and spinning and winding, second and fifth shifts, achieved an accident- free year. Other Bailey Plant shifts working accident free for twelve consecutive months were weaving and slashing, fourth shift; cloth room, first shift; Clinton maintenance third, fourth and fifth shifts; Lydia, third; Bailey, second, third, fourth and fifth shifts. Clinton and Bailey warehouses achieved twelve accident free months. Geneva experienced a 47% decline in medicals. Departmental shifts working January 1, 1991 thru December 31,1991 without a medical accident were Plant No. 1 - all shifts and departments except spooling; Plant No. 2 - carding 1st and 3rd; weaving 1st, 2nd, and 3rd; cloth room 1st, 4th and 5th. EFA’s medicals posted a 47.5% improvement and their lost time rate fell by 28%. Departmental shifts with no ac cidents in 1991 were warping department 1st and 2nd shifts; circular knit 1st, 2nd and 3rd shifts; lace department 1st, 2nd and 3rd shifts; finishing 1st shift; inspection 1st shift; product development 1st shift; maintenance department 3rd shift; color lab 1st shift; quality assurance 1st and 2nd shifts; and warehouse 1st shift. Congratulations to these associates and their supervisors. Clothmaker Celebrates 40th Anniversary S I he first edition of the Clothmaker cams off the press on February 15,1952. This first edition was published under i the name Clinton — Lydia News. A contest was held offering $15 to the person submitting an acceptable name for the new publication. The late W. P. Burdette submitted the name ‘ ‘Clothmaker ’ ’ and it was named the winner from more than 300 entries. Over the years the Clothmaker has recorded the accounts of many important events in the life of the Company and in the lives of our employees and their families. We take this opportunity to thank the many associates who have played a part in the successful production of the Clothmaker over the past 40 years.