http://www.business2.com/articles/mag/print/0,1643,41550,FF.html

Forget all the futuristic hype about subatomic robots. Nanotechnology is
already here, and Burlington CEO George Henderson is using it to save the
U.S. textile industry from extinction (and your pants from Beaujolais).

Most CEOs ignore cold calls. George Henderson, who runs textile firm
Burlington Industries (BRLG), enjoys them, figuring he can quickly sniff out
whether a caller is worth his time. That's how David Soane, a chemist and
entrepreneur, ended up in Henderson's conference room waving around a
peculiar piece of fabric and a squirt bottle full of water.

It was October 1998, and Henderson knew that Burlington was headed for
trouble: Cheap Asian textile imports were pounding the company. Henderson
needed new ways to boost profits. Why not hear what Soane had to say?


For his part, Soane wasn't expecting much. His laboratory is in Emeryville,
Calif., one of the many high-tech enclaves of the San Francisco area;
Burlington's hometown, Greensboro, N.C., was the last place he thought he'd
find a backer for the revolutionary technology he believed he had created.
But there Soane was, on the fifth floor of a two-building office complex
outside Greensboro, seated on one side of a long wood table opposite
Henderson.


"Show me what you got," Henderson said.


Soane pulled out a small swatch of denim and his water bottle and began
dousing the fabric. The water beaded up, then rolled off, as if it were
mercury. The denim was bone-dry. Henderson was skeptical. He'd seen plenty
of fabrics that repel water; none were comfortable enough for everyday
clothes.


"Let me feel the fabric," he said.


The swatch was soft -- indistinguishable, really, from any well-worn pair of
jeans. "At that point," Henderson recalls, "I was intrigued. I'd never seen
that before."


He also had never heard of nanotechnology, the name for the science behind
Soane's magic fabric. By the next day, Henderson was a believer in both, and
Burlington soon shelled out $3.5 million to buy a 35 percent stake in
Soane's two-man startup. Soane began recruiting other chemists as he set out
to revolutionize one of the most ordinary products imaginable: a pair of
pants.


Almost four years later, Burlington's condition, like that of the entire
U.S. textile industry, is grim. Mired in almost $1 billion of debt, the
company is struggling to emerge from Chapter 11 bankruptcy protection. It
lost more than $50 million in the latest quarter alone, and it has laid off
11,600 workers -- fully 61 percent of its workforce -- since the beginning
of 2000.


But Henderson's gamble on Soane's startup, now called Nano-Tex, could end up
providing a lifeline to Burlington. Brands such as Eddie Bauer and Lee Jeans
are promoting pants that use Nano-Tex's technology. Most important, the
venture could help establish an entirely new way of doing business for a
U.S. textile firm -- not running expensive mills, but instead licensing its
technology to other mill owners, as if it were a software company. Such a
strategy, says James K. Weeks, business school dean at the University of
North Carolina at Greensboro, is "the only way the U.S. is going to compete
in textiles."


Nanotechnology takes its name from the nanometer, one-billionth of a meter,
and describes the ability to manipulate individual atoms to create new
materials. The field, of course, has received much fanfare since Henderson
first heard about it from Soane. The press likes the story because of the
science-fiction-like possibilities nanotech offers: tiny robots patrolling
our bodies and cleaning our arteries, for example. In reality, though,
nanotechnology is already working its way into our lives in far more mundane
ways. And unlikely companies such as Burlington are leading the parade. (See
"Small Wonders.")


Soane's nanopants feel and look like any other pair of khakis, until you
examine them under an electron microscope. Deep in the fabric lie billions
upon billions of structures that look like whiskers. (Soane calls them
nanowhiskers; he won't disclose their exact chemical makeup.) What makes
this "nano" is that each whisker is just 10 nanometers long; a single grain
of sand, by contrast, measures 100,000 nanometers. The result is fabric so
dense that liquids can hardly penetrate it. "It's one of those things that,
until people try it, they have a hard time believing it works," says Kathy
Collins, the head of marketing for Lee Jeans.



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