TenCate Defender(TM) M Products Witness Strong Revenue Growth And Progress

US Congress extends waiver under US Berry Amendment which includes additional extension until 2015 of the existing waiver as regards the import of flame-resistant (FR) rayon fibers in the United States.

TenCate Protective Fabrics USA has achieved a turnover of TenCate Defender(TM) M products in the fourth quarter of 2010 in conformity with the forecast (approximately US$ 60 million). This means more than a doubling compared to the same period in 2009. TenCate expects this development to continue at least until the third quarter of 2011. Sales regarding protective fabrics for the US Military in the first quarter of this year will be at about the same level as in the fourth quarter of 2010.

The United States National Defense Authorization Act for Fiscal Year 2011 (H.R. 6523) was signed into law by the US Congress on January 7, 2011. This bill includes additional extension until 2015 of the existing waiver under the US Berry Amendment as regards the import of flame-resistant (FR) rayon fibers in the United States. The original exemption would expire in 2013. The US Berry Amendment requires the US Department of Defense to procure textile, food, and specialty metal products that are manufactured in the United States, including fiber raw materials.

The TenCate Defender(TM) M product portfolio of TenCate Protective Fabrics USA in Union City (Georgia, USA) uses a blend of fibers, which includes FR rayon fibers from Lenzing AG of Austria. The flame-resistant fabrics thus produced for the US military uniforms are entirely produced in the United States. Herewith TenCate Protective Fabrics USA has created about 10,000 American jobs. A large number of American suppliers are involved in this production.

The new waiver underlines the strategic importance of this fiber to meet the demand for high quality flame-resistant fabrics for American uniforms, which offer US soldiers maximum protection. Moreover, this extended waiver is important for the US textile industry for being capable of delivering substantial volumes with a high degree of reliability.