By JOE PERRY, Item Staff Writer

About half of the new cars in North America have trunk and floor carpeting and fiber that was made by Maine-based Formed Fiber Technologies, and the majority of that fiber came from recycled water and soda bottles, putting Sumter's FFT subsidiary Color-Fi on the cutting edge of an environmentally friendly manufacturing process.

Color-Fi on Neeley Street in the Guignard Drive Industrial Park recently received the Greater Sumter Chamber of Commerce 2006 Large Manufacturer of the Year Award for the second time, having also won in 2005.

Color-Fi is a growing company. Parent company FFT CEO and President David MacMahon was in town last week as FFT's board of directors approved some capital expenditures to upgrade equipment. MacMahon said the automotive market dictates the FFT's direction, and joked that the inside of most new cars resembles a living room — which is increasingly true — and equals FFT and Color-Fi increasing their market share.

In addition to the carpeting in cars, Color-Fi's solution-dyed polyester fibers (about 5,000 different colors) end up in janitorial supplies, paint rollers and home furnishings — or are sold to other companies for further manufacturing.

THE PAST AND THE FUTURE
Things have not always been bright and sunny at Color-Fi. In Sumter since 1984, what was then Martin Color-Fi filed for Chapter 11 bankruptcy protection in November 1998. Reorganization and several lean years followed. In November 2003, Color-Fi was acquired by Formed Fiber Technologies Inc., a leading automotive interiors supplier, and its majority investor, Morgenthaler Partners, a major middle market buyout firm.

FFT has its corporate headquarters and design and engineering center in a 300,000-square-foot facility in Auburn, Maine. In addition to a 164,000-square-foot facility in Sydney, Ohio, FFT has a facility of about 400,000 square feet in Sumter. Color-Fi Plant Manager Wilbur Bullard said there are 50 to 60 employees on the floor at any given time, and a total of 200 plus — on a payroll of more than $7 million — that work four shifts, keeping Color-Fi humming with activity 24-7.

MacMahon said that in 2006, FFT produced 2.9 million complete trunk systems in 29 different models of cars, ranging from Acura, BMW and Buick to Honda, Hyundai, Pontiac, Saturn, Subaru and Toyota. As the influence of Japanese imports has risen in the consumer marketplace, so has FFT's profile. MacMahon said he's been doing business in Japan for over 20 years, building long-term relationships, which will in turn fuel the need for increased productivity and more workers in Sumter.

'NOTHING IS WASTED'
Giant boxes of shredded plastic bottles take up a decent chunk of floor space, and sit beside boxes of polyester pellets that will — through an involved 28-step process — be converted into consumer products. It's a completely "green" process, said Bullard, meaning Color-Fi is making a profit for FFT while at the same time keeping material out of landfills.

"Nothing is really wasted — even the waste is converted back," he said.

Material that doesn't make the cut quality-wise becomes the fiber that goes under the carpet on the floor of the car.

With any large-scale production facility, efficiency is a key factor. A small sign in the plant on some equipment states that 83.11 pounds of first quality fiber comes out of every 100 pounds of raw material, (boxes of shredded water bottles, for instance, that are bought already shredded) which seems like a pretty good ratio, but MacMahon said his goal is to get into the '90s.

In terms of output reaching the marketplace, MacMahon pointed out fiber being spun out of several rollers that was destined for FFT's site in Maine.

"It'll probably be in a trunk before the first of March," he said.

Roughly a third of what comes out of the Sumter facility is fed into the parent company, he said, another third goes into automotive supplies, and the other third is non-automotive related. Currently, though, the trunk liners are the most high profile segment of the company's business, and it all started in the early '80s because auto manufacturers saw the need to upgrade the trunk, but lacked a supply.

"We started this business in response to a demand for textiles in the trunk of the car," he said. "We were the ones who started it. Manufacturers wanted something better."

ONWARD AND UPWARD
Since it took over in 2003, FFT has invested about $3 million in the Sumter facility to upgrade equipment and improve productivity.

"Wilbur's got a three-pronged manufacturing strategy," MacMahon said. "One is to be more efficient in terms of yield, and utility costs, second is to be more labor productive, and the third is to get more out(put). If you do the first two, you get more out(put) anyway."

Bullard's strategies are seeing real results, MacMahon said, and Human Resources Manager Amy Mohr said Color-Fi is currently looking to hire about 20 people, even though it has probably created about 40 new jobs in the last few years. Mohr said the average tenure of a Color-Fi employees is about 10 years.

So what is the secret to maintaining a skilled and receptive workforce?

"We have an egalitarian benefits package — in other words, the machine operator has the same benefits package that Wilbur (Bullard) does," said MacMahon, "same as I have, for that matter."

He also praises the "outstanding medical program" that places a lot of emphasis on the preventative side.

"It's all based on wellness," he said. "Philosophically, what we're saying is, we'll never control medical costs. I don't know if it's a trend, but it's what we're doing. We've been focused on this for a couple years."

Corporate culture is increasingly looking to invest proactively — free physicals, free nicotine patches for those looking to quit smoking, for instance — in an effort to stave off the expensive and productivity-sapping medical procedures that harm the bottom line.

Keeping workers healthy is one thing, but they also have to be well trained. Mohr and MacMahon said Central Carolina Technical College has been an integral factor in keeping the in-flow of skilled workers steady with the Work Keys program.

"Those guys do a fantastic job," MacMahon said, adding One Stop and the Santee-Lynches Council of Governments as key partners in funneling qualified workers into jobs that start at $10 an hour.

Another tribute to the workforce, he said, is the plant recently receiving ISO 9001 certification with zero non-conformities, which is very rare.

ISO is the International Organization for Standardization — a network comprising various industry experts who set uniform standards and continually monitor them for any deviations.

Color-Fi, MacMahon said, is a very well-managed business, with an excellent plant manager and top notch human resource manager.

"Which in turn makes it a great place to work," he said. "Everybody will tell you the same thing, that their associates are the greatest assets, but we happen to believe it."

---

January 2006   Greater Sumter Chamber of Commerce
Color-Fi Named Medium Manufacturer of the Year

Color-Fi is a leading North American manufacturer of solution-dyed polyester fibers. While the company has been in Sumter since 1984, its existence was endangered just a couple of years ago by hard economic times. But after a financial reorganization and a change in ownership, Color-Fi has returned from the brink and is currently in a state of growth.

In 2004, Color-Fi was acquired by Formed Fiber Technologies, Inc. (FFT), a leading automoitve interiors supplier and its majority investor, Morgenthaler Partners, a major middle market buyout firm. FFT transferred its solution dyed polyester operation to Sumter and has used its operational expertise to enhance Color-Fi's competitive advantage, focusing on specialty and custom fibers.

With annual sales inexcess of $40 million, Color-Fi employs more than 200 workers in Sumter, with a total payroll of more than $7 million. Over the past two yers, Color-FI invested well inexcess of $3 million in equipment upgrades to improve the company's competitiveness.

Color-Fi's associates are recognized and valued for the contributions they make to the company's success. Associates at Color-Fi can expect competitive wages and beenfits, safe working conditions and opportunity for advancement. Additionally, full-time employees receive a benefit package that includes health, dental, prescription and vision coverage, paid holidays, a retirement plan, and company-wide life insurance. Color-Fi also values the development of its employees and has instituted a tuition reimbursement program to help pay for educational expenses. It also has a wellness program, and an Employee Assistance Program.

Color-Fi believes in contributing to the community as well, with a United Way program that matches employees 50%. It encourages its associates to be active in the community and each year its employees donate hundreds of hours of volunteer time to organizations all across Sumter.

---

November 24, 2003   Morgenthaler press release
Formed Fiber Technologies, Inc., Acquires Martin Color-Fi
Expands Woven and Nonwoven Platform Company by Adding Leading Maker of Color Polyester Fiber

AUBURN, Maine -- Formed Fiber Technologies and its majority investor, Morgenthaler Partners, a leading middle market buyout company, announced today that they have acquired Martin Color-Fi, Inc (MCF). MCF, based in Sumter, South Carolina, is a leading North American producer of polyester fiber. Terms of the deal were not disclosed. FFT is the leading supplier of thermoformed, nonwoven system solutions to North American automotive OEMs and Tier 1 automotive suppliers.

"Martin Color-Fi represents a critical source of raw material for FFT, both now and for our future growth plans," said David MacMahon, President and CEO of FFT. "This acquisition allows us to consolidate FFT's relatively small solution-dyed polyester fiber manufacturing operation with MCF's larger facility and thus achieve economies of scale."

The consolidated business will continue to serve all of MCF's current customers, in addition to FFT. "Acquisition by FFT brings increased financial strength to MCF and assures customers of a long-term, reliable source of solution-dyed polyester fiber," said MacMahon. FFT and Morgenthaler continue in their search to expand FFT through strategic acquisition.

"The increasing reliance by automakers on a few key suppliers makes it imperative to grow," said Simon Feiglin of Morgenthaler and a member of the FFT board of directors.

About Formed Fiber Technologies
Formed Fiber Technologies is the leading supplier of thermoformed, nonwoven system solutions to North American automotive OEMs and Tier 1 automotive suppliers. Founded in 1979, it employs 600 associates at two state-of-the-art manufacturing plants in Auburn, Maine, and in Sidney, Ohio. Its website can be found at www.formedfiber.com.

About Color-Fi
Color-Fi is a leading producer of polyester staple fiber and a QS9000/ISO 9002 certified company. It is based in Sumter, SC and employs 250 associates. Color-Fi's website can be found at www.colorfi.com.

About Morgenthaler
Founded in 1968, Morgenthaler is a leading, national private-equity firm with a middle-market, management buyout group based in Cleveland, Ohio, and a venture-capital group based in Menlo Park, California. The firm has funded more than 180 companies over its 34-year history. With its new fund of $850 million raised in July of 2001, Morgenthaler now has a total of $2 billion under management.

The firm's buyout group focuses on management buyouts and leveraged recapitalizations of stand-alone middle-market companies, as well as divisions or subsidiaries of larger corporations. Morgenthaler has traditionally been strong in partnering with management teams to build industry-leading companies. For more information regarding the firm, visit www.morgenthaler.com.