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THOMAS E. DAVENPORT VICE PRESIDENT Manufacturing ■ Although we are well into the new year, I'd like to take this op portunity to reflect on the past year as well as relate to you some of the events which will take place in 1992. The previous twelve months were shaped by the events relating to the Persian Gulf Crisis, economic uncertainties as a result of the recession, con- — fusion in financial markets and world political and economic events. Despite these events, our Company was able to operate on near normal schedules without any major interruptions. . , Our move toward world-class manufacturing is progressing, and we now have a full-time person directing our Quality First efforts. Our quest for continuous quality improvement has reached new levels of success. Quality First teams continue to contribute ideas and recommendat ions to improve our operations. Team training has broadened the basic understanding and appreciation of many associates in our efforts to be a world class manufacturer. , . . As 1992 progresses, we will face many new challenges and opportunities as we install Picanol air jet weaving machines at Bailey and relocate Sulzer weaving machines to Plant No. 2. We must maintain and improve our quali ty and production levels throughout this modernization project. In 1991 our Company felt the effects of rising workers compensation costs as the level of on-the-job accidents continued at unacceptable levels. Each of us is responsible for our own safety, and we must work together to reduce the number of associates hurt on the job. Geneva Plant No. 1 worked the entire year without a lost time accident, thus proving that ma jor accidents can be prevented. Lydia reduced both its medical and lost time accidents by 48%. and the Bailey Plant recorded a 38% decrease in medicals and a 58% reduction in lost time accidents. All of us can be proud of these accomplishments. To stress the importance of accident prevention, associates are participating in the largest safety incentive pro gram ever offered by the Company. Under this plan, the Company will reward associates whose shift works a continuous three month period without a medical accident. Gifts will be selected from a personal catalog, and the value of the gifts will increase as the number of quarters without a medical accident accumulate. Your Company appreciates the efforts you give in making Clinton Mills a leader in the industry. W. JAMES RALEIGH PRESIDENT Clinton Mills Sales Company ■ From a sales standpoint 1992 should be a better year than 1991. Even though the country is in a recession and the economy is still weak, we predict a good first and second quarter. Clinton is making every effort to become our customers’ pre ferred supplier. Achieving this objective will help ensure that our plants run at full capacity. The implementation of Quality First in our weaving operations in 1991 has and will continue to help us achieve “Preferred Supplier” status. Clinton has the reputation of manufacturing excellent quality products. If we are to remain strong in the market we must not only maintain this reputation but we must strive to improve and elevate our quality to the next level, which will allow us to compete with the domestic market and imports. This customer letter will emphasize the importance of a quality reputation Anthony J. (Tony) Raffo Chatham Joins CMI Team (Continued) The Company was started in 1877 as Elkin Woolen Mills. In 1890, it became Chatham Manufacturing Company. From its beginning as a one card operation on the Big Elkin Creek, it has grown to cover over 213 acres and over 2,000,000 square feet of floorspace. Included in this, eight miles to the east in Boonville, is the second plant where most yarn making processes take place. Chatham is involved in the entire process of taking raw fiber to finished fabric. These processes result in products as diverse as upholstery fabric for the furniture and automotive industries to blankets. Using the woolen operating system, raw fibers are prepared, then woven or knitted. Finishing processes unique to style prepare the product for the customer. Chatham also has an innovative and patented process called “Fiberwoven”. With this process, batts of fiber are needled until fibers are intertwined to form a stable cloth. This cloth is then used in making various bedding products. The complexity of operations at Chatham offers customers a unique advantage. Product specifications are not limited, letting buyers select from an array of patterns, styles, and colors resulting in over 8,000 finished stock keeping units and over 2,200 active yams. Upholstery buyers may choose styles designed for home furnishings or the commercial industry, placing fabrics in schools, churches, or theaters. Automakers can choose from styles designed for luxury cars or pickup trucks. The bedding division offers a wide range of products — afghans, college throws, blankets for homes, airlines, and institutions, as well as mattress pads and Restwarmers (an electric mattress pad). These products are also available to the public and company employees at the Chatham Country Store Outlet located in the neighboring town of Jonesville just off 1-77. Chatham has maintained competitiveness in the marketplace because of a strong commitment to quality and the ability to diversify in response to customer need and request. With hard work and determination of its associates, Chatham continues to offer quality products to its customers. Anthony J. (Tony) Raffo will head Chatham as President and replaces Alan Payne who retired on February 14, 1992. Tony comes to Chatham from M illiken and Company where he has served as Division President of the Automotive and Elastic Fabrics Division since 1986. Tony joined Milliken in 1972 after six years with Burlington Industries. In his career with Milliken Tony held positions as Plant Manager, Director of Manu facturing, Corporate Vice President of Human Re sources and General Manager before becoming a Division President. Among his numerous re sponsibilities Tony served as a member of Mill iken’s corporate Policy Committee and chaired the Milliken Corporate Quality Council and Safety Task Force. Tony is a 1965 graduate of the Citadel. He completed the Harvard Graduate School of Business Advanced Management Program and various manage ment programs at the University of Virginia and Wharton School of Business. We welcome Steve Creamer to Chatham as Executive Vice President of Operations. Steve is a native of Anderson, South Carolina and a 1976 graduate of Clemson University. He brings to Chatham 16 years of textile experience in yarn manufacturing, weaving, knitting and dyeing and finishing. Before coming to Chatham, Steve was General Director, Manufacturing, for Milliken’s Automotive and Elastics Division. In his position as Executive Vice President of Operations, Steve will be overseeing manufacturing, industrial engineering, process engineering, quality assurance and technical services. He is a graduate of the National Cotton Council's Executive Leadership Program and enjoys reading, hunting and skeet shooting. DETTMAR RESCUES FAMILY FROM FIRE Police Officer Robert Dettmar, son of Geneva’s Human Resource Manager Bob Dettmar, helped in rescuing five peo ple and two puppies from a burning home in Montgomery, Alabama. On the morning of January 25th, at 5:35 a.m., Dettmar and his partner Michael Lucas were on routine patrol when they smelled smoke and started looking to see where it was coming from. Policemen routinely keep the windows in their cruisers slightly open as a standard procedure. Upon reaching the house, Dettmar and his partner could see smoke but could not see flames until they were on the front porch. “You could see the flames up in the loft,” according to Officer Lucas. “Once it gets up in the loft, it can go anywhere. There was no telling what would have happened if we hadn't come by that early.” “They saw the fire and woke us up,” said David Girdner, a resident of the house. “They were driving down Madison Avenue and saw smoke. One was at the front and one was at the back knocking on the door. Because we were asleep at the time, their response inevitably saved our lives.” Firefighters were called and within nine minutes they had controlled the blaze in the attic of an enclosed front porch. Our congratulations go to Officer Dettmar on his heroic efforts. MILLS GRANT RECEIVES EAGLE SCOUT AWARD Mills Grant, son of Mr. and Mrs. George M. Grant, Jr. recently received his Eagle Scout Award. Mills, who has been active in the troop for seven years, held the positions of Patrol Leader, Senior Patrol Leader and member of the Leadership Corp. He was elected to the Order of the Arrow and participated in the Swamp Fox Trail Adventures, where he received the Trail Award. Mills is a senior at Clinton High School where he is an honor student. In addition, Mills is secretary of the Beta Club and was a member of the Clinton High School march ing band and has been on the golf team for three years. The “Scouter” attended Business Week, Model Legislature and was selected for Boys State. He plans to enter Clemson University this fall and will major in Agronomy. Steve Creamer Mills Grant