Transnational Corporation Itg

International Textile Group

The International Textile Group (ITG) is a transnational corporation that is globally positioned to act as a valuable partner to companies around the world in product development, styling and design, manufacturing and marketing. ITG has several locations around the globe to perform its outsourcing business and is continuing to merge with more and more companies to expand its global network and success.

ITG was formed in 2003 when Burlington Industries Inc. and Cone Mills Corp. were consolidated. Both companies were bought out of Chapter 11 bankruptcy proceedings by Wilbur L. Ross & Co. Although many were concerned about Ross' decision to merge the two bankrupt companies, this consolidation created a $900 million company in which Ross is chairman. Ross' WL Ross & Co. and its affiliates control about 82% of ITG (Hoovers, 2006).

Ross has been revitalizing bankrupt companies since 2002. Ross stated, "We saw the mills had way too much debt, a lot were filing for bankruptcy, and we knew the clock was ticking away with quotas expiring" (Tatge, 2). It is evident that Ross is trying to revamp the textile industry itself. Ross is well-known in the business of producing steel, coal, and auto parts. He is looking to turn the textile industry inside out. Tatge reports, "Ross aims to be the cheapest, quickest, highest-quality and most flexible clothmaker on the planet" (Tatge, 1). He plans to do this through merging the business of unfinished cloth with the once traditionally separate enterprise of producing the finished goods. Perhaps Ross' biggest endeavor is that of capitalizing on the developing world. Not only does Ross feel this is a source of cheap labor, but he also is looking to create new customers.

To understand Ross' thinking, it is vital to know about the apparel and textiles industry itself. The US apparel and textiles market reached a value of $282.25 billion in 2003 and is expected to experience a slight increase in growth rates. According to DataMonitor, by 2008, the market is forecast to reach a value of $319.98 billion (DataMonitor, 2004). The textile industry has traditionally been one of the largest industries of the US economy, and Ross knows he can generate a huge amount of business in such a booming industry (DataMonitor, 2004).

Ross' acquisitions have made ITG a true competitor in the industry. ITG consists of five business units, including Safety Textiles International, Cone Denim, Burlington WorldWide, Burlington House, and Carlisle Finishing. ITG has many manufacturing locations around the world, but the company's headquarters are located in Greensboro, North Carolina (ITG, 2006).

Safety Textiles International

Airbag fabric maker Safety Components International merged with ITG in late 2006, making ITG a leading producer of outsourced airbag fabric and airbag cushions used in the US and a leading producer of outsourced airbag cushions used in Europe. To prove how important international business is, more than half of the company's safety-related sales come from outside the US. Safety Textiles International consists of airbag fabrics and cushions and specialty fabrics as well (ITG, 2006).

Safety Textiles International has manufacturing facilities in China, Czech Republic, Germany, Mexico, South Africa, and the US. ITG is shifting its focus to engineered fabrics, which made the merger a good decision for the company (Hoovers, 2006).

Cone Denim

Cone Denim was established in 1891 by Moses and Caesar Cone. By 1895, they began to weave their own cloth to sell. By 1912, they operated four mills in Greensboro: Proximity, Revolution, White Oak and Proximity Print Works. White Oak is still the flagship operation for Cone Denim Mills. ITG's website states, "Over its 100 years as an innovator in denim, the White Oak plant has been at the center of denim product development throughout history" (ITG, 2006).

The White Oak plant has experienced many firsts in the industry. These include: first to use a continuous indigo rope range, first to weave denim on shuttleless weaving machines, first to design and build a continuous raw stock dyeing machine for cotton, and first to use high volume instrument technology to test cotton properties. White Oak truly is an innovator in denim (ITG, 2006).

The White Oak brand has a fabric and premium denim collection that was recently launched by Cone Denim. It uses new yarn and fiber technologies and denim processes for unique styles. Cone Denim's products range from vintage premium to mainstream denims (ITG, 2006).

Burlington WorldWide Apparel

Burlington WorldWide produces apparel for leading brands of menswear, womenswear, activewear, cotton casuals, tailored, uniform and barrier products. Burlington uses many different fabrics for its products. These include blended and performance synthetics, worsted wool, and cottons and cotton-blends.

Burlington Activewear is a supplier of technical fabrics to leading activewear brands and retailers worldwide. Designs are used for technical and active sportswear, performance outerwear, swimwear and fitnesswear. Their products include Xalt, Ultrex, Versatech, M.C.S. Blocker, and Micromove (Burlington Products, 2005).

Burlington Uniform Raeford offers premium uniform fabrics. These fabrics are designed for the Public Service, Career Apparel, and Military and Band uniform markets. Some of the fabrics used are Naturelle, Problend, Longlife, Comfort Fiber, HTP, Xalt, Ultrex, and Versatech. The finishes offered are Restora, Raeflex, Resists Spills, and Coolest Comfort (ITG, 2006).

Burlington Barrier Products are made for many industries including Health Care, Contamination Control, Spray Room/Automotive, Pharmaceutical, Static Control, and Food and Beverage. These products work to provide protection, performance, comfort and durability. According to the Burlington Barrier website, "Burlington's vertical operations, including yarn processing, weaving, dyeing and finishing, ensure high quality throughout the manufacturing process" (ITG, 2006).

Burlington House

Burlington House Interior Fabrics is a leader in the global market in supplying interior textiles. Their products include Burlington House Mattress, Decorative Fabrics, Cone Jacquards, Burlington Contract Fabrics, and Dorma brand products. These products are used to decorate homes, corporate offices, hotels and healthcare facilities (ITG, 2006).

Carlisle Finishing

Carlisle Finishing