Sarla Performance Fibers To Establish U.S. Operations, Add 100 Jobs

Sarla Performance Fibers Ltd. — an India-based manufacturer of polyester and nylon textured,
twisted and dyed, covered, and high-tenacity yarns as well as sewing threads — is investing $13.8
million to establish a yarn and thread manufacturing business in Walterboro, S.C., that will
operate under the name Sarlaflex.

The new plant — which will be housed in a former JP Stevens facility — will manufacture
polyester yarn for apparel and upholstery applications and is expected to target the North American
Free Trade Agreement (NAFTA) and Central America-Dominican Republic Free Trade Agreement (CAFTA-DR)
markets as its yarns will comply with the FTAs’ country of origin rules, according to textile
industry consultant Alasdair Carmichael, who also noted that the plant will be chip-fed with new
partially oriented yarn (POY) extrusion, drawtexturing and twisting equipment scheduled to be
delivered in early 2013. Sarlaflex is expected to begin production by May 2013 and create 100 jobs.

“We are pleased to establish our U.S. presence here in South Carolina,” said Bobby Downs,
executive vice president, Sarla Performance Fibers. “Colleton County offers us an excellent
business environment, skilled workforce talent, exceptional market access and close proximity to
the Port of Charleston. We appreciate all the support we’ve received from state and local officials
in bringing this project to fruition.”

Sarla Performance Fibers has subsidiary operations in Portugal, joint venture manufacturing
operations in Honduras and Turkey, and distribution centers in Thailand and Vietnam. The company
exports its products to more than 40 countries.

December 19, 2012