1. Copyright © Jaeggli Meccanotessile srl. All rights reserved. HL-2000X Hank mercerizing system

2. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 2 Summary  Company presentation  What is mercerization for?  Mercerization in a nutshell  The effect of alkalis on cotton  The behaviour of alkaline solution  The mercerization process  HL-2000X mercerization system  Ancillary equipments  Value proposition  Input table for investment valuation  Estimation of production costs  Project management services  Contact us

3. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 3 Company presentation  YARN MERCERIZING MACHINERY  DENIM-KNIT REWINDING SYSTEMS  CAUSTIC PREPARATION & RECOVERY  PLANT ENGINEERING SERVICE  TECHNOLOGICAL ADVISORY SERVICE  Established in 1985 after the merge between the swiss company Jaeggli AG and the famous italian firm Meccanotessile Srl  Over one century tradition in yarn mercerization  Part of the Fi-Ind Group (with Tesmec and Reggiani Macchine) since 1999  In house design and manufacturing  Group turnover:  100M €  Group employees:  320 JAEGGLI: ALWAYS AT CUSTOMER’ SERVICE

4. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 4  Filoscozia® : is a registered trademark that collect only the highest grade mercerized cotton yarn, produced solely from the best Egyptian cotton (or cotton with the same characteristics), combed, twisted (doubled), singed, mercerized in yarn, dyed and with a count not less than Ne 50/2. This yarn is exceptional for its features of: What is mercerization for? Mercerization greatly improves the cotton yarn features increasing the value of yarn and differentiating the offer. Applications may vary from socks to underwear, from shirts to accessories, from sewing to embroidery. EXAMPLE  Softness  Dimensional Stability  Luster and Brightness  Confort

5. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 5 Mercerization in a nutshell Improved luster Improved ability to absorbe dye Improved reaction with a variety of chemicals Improved stability of form Improved strength and elongation Improved smoothness Improved hand Mercerization is a treatment of cotton with a strong alkaline solution in order to improve luster, hand and other properties and was named after its discoverer John Mercer. If cotton is dipped into a bath of a strong alkaline solution (caustic soda, lithium hydroxide, potassium hydroxide) the fibers will swell and shrinks. If the fibres are placed under tension during this process and then rinsed with water the alkali will be removed with a silk-like luster result. Alternatively, if the alkali is rinsed off when the fibre is in its shrunk state, the increase of luster may not be noticeable but the fibres will fix in that shrunk state, thus giving good elasticity to external stress.

6. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 6 The effect of alkali on cotton fibers Below 11°Be no change on the cotton is visible Between 11-18°Be untwisting of the fibre appears and shrinkage increases Between 18-22°Be shrinkage of the length is maximum and untwisting is constant Nearing 24°Be swelling and untwisting occur at the same time Between 28°-32°Be swelling and untwisting reaches the maximum joint effect Between 33-44°Be swelling occurs before untwisting and shrinkage decreases The essence of mercerizing cotton is that in the swelling of cellulose fibres due to the exposure to alkalis, the natural crystalline structure of the cellulose relaxes and under an appropriate tension, the dimensions can be set by the conditions, and rinsing with water while these conditions are maintained removes the alkali and converts the cellulose to a new crystalline structure, fixing the dimensions. The degree of swelling of the cellulose is the most important factor and it is related to the alkaline concentration.

7. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 7 The behaviour of the alkaline solution Anyway the process has some complications because the water content of the yarn before mercerization (usually around 40%) steadily dilutes the caustic soda, the concentration must be prevented through the steady addition of a corresponding high-concentration alkaline solution. Furthermore, to avoid a rise in temperature due to the dilution heat and the heat generation that accompanies the cellulose fibre absorption of the alkali, the alkaline solution must be cooled, thus allowing the preservation of a constant temperature. Poor caustic soda preparation units may not provide good and constant control over all those effects resulting in a low quality mercerization in terms of mercerization grade and of repeatability of batches.

8. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 8 The mercerization process SINGEING (cone to cone) REELING (cone to hanks) HANKS MERCERIZING HL-2000X HANKS NEUTRALIZING and BLEACHING or DYEING HANKS SQUEEZING & DRYING REWINDING (hank to cone) The mercerization is a process that involves many different steps Although the mercerization machine and ancillary equipments are clearly the heart of the process, also the other equipments are fundamental to achieve a full quality production. Low quality machines in the process line may compromise the production quality or the production rate significantly.

9. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 9 HL-2000X mercerization system Top quality mercerized yarns through:  Customized process cycles and settings according to the features of the yarns (quality and counts) and to its final usage  Extremely precise control of yarn elongation (  0.1 mm)  High stretching force (up to 70 Tonns)  Continuous recycling of the alkaline solution to avoid dilution and over-heating  Reduced hanks handling by the operators (with ALS-2000X)  Batch production flexibility THE HANK MERCERIZATION SYSTEM based on our new Hanks Mercerizing Machine HL-2000X with the Automatic Loading System ALS-2000X

10. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 10 Ancillary equipments EB-2000X Our Eco-Block for caustic soda preparation provides full control of the caustic soda parameters that affect mercerization: concentration, temperature, filtration continuously in real time (and not on batch). Dosing of the wetting agent is included. One Eco-Block can supply up to 2 HL- 2000X machines. HD-2000 Since constancy of hanks reeling size is a critical aspect for repeatibility of the process; our Hank Measuring Device can help in setting-up and maintaining the reeling machines For the best mercerization process control Jaeggli-Meccanotessile also produces the necessary ancillary equipments:

11. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 11 Project management services  Technological process flow and general installation planning  Detailed machines, installations and storage lay-out planning  Machines foundation and drainage system design planning  Utilities procurement specifications planning and calculation: gas, water, steam and condensate, compressed air, electricity  Dimensioning and lay-out planning of utilities distribution piping system (according to CE Standards)  Dimensioning and lay-out planning of drainage system (according to CE Standard)  Effluent water and vapour specifications  Dimensioning and lay-out planning of chemical reagents for bleaching, neutralising and mercerizing (according to CE Standard)  On site assistance during installation and start-up of the line ENGINEERING SERVICES  Main contractor for the supply of the complete mercerizing line (from gas-singeing to hank-to-cone rewinding)  Main interface between client and sub-suppliers for all the machineries and equipments  Coordination and dimensioning of the process line MAIN CONTRACTOR  Start-up and fine tuning of all the process line  Detailed recipe management according to customer’s desired production output  Overall quality check-up  Laboratory start-up  Basic and advanced training to local technicians TECHNOLOGICAL PROCESS ADVISORY Besides the simple supply of machinery, Jaeggli-Meccanotessile proposes itself as a technological partner for the customer providing a full range of services (from main contracting to technological advisory) to fully satisfy customer’s needs.

12. Copyright © Jaeggli Meccanotessile srl. All rights reserved. 12 Contact us JAEGGLI MECCANOTESSILE s.r.l. Via Zanica 17/O 24050 Grassobbio (BG) – Italy Tel: +39-035.384.4524 – Fax: +39-035.384.4590 info@jaegglimeccanotessile.it www.jaegglimeccanotessile.it