Lycra Company Boosts Asia-Pacific Elastane Supply with New China Plant

The Lycra Company has significantly expanded its manufacturing footprint with the opening of a new elastane plant in Yinchuan, located in China’s Ningxia province. This state-of-the-art facility boasts an initial output capacity of 30,000 tons, with strategic plans to potentially increase this to an impressive 120,000 tons in the future. The primary driver behind this substantial investment is to cater to the escalating demand for elastane within the dynamic Asia-Pacific region. The Lycra Company, in partnership with the Yinchuan Financial Capital Investment Group, has channeled CHY800 million (€97 million) into the factory, which is projected to create nearly 500 new job opportunities and generate an estimated annual revenue of CHY1 billion (€120 million) for the region.

The strategic importance of this expansion is underscored by China’s pivotal role in the global textile industry. Gary Smith, CEO of The Lycra Company, emphasized this, stating, “China is strategically important, representing over 50% of the global apparel production market.” He further elaborated that this new partnership allows the company to “optimise our product mix more broadly, while meeting the increase in demand for quality spandex [elastane],” highlighting the critical need to align production capabilities with market requirements in such a dominant manufacturing hub.

This Yinchuan factory marks The Lycra Company’s second production site in China, complementing the plant inaugurated in Foshan in 2025, which directly serves the Chinese and broader Asian markets with its Lycra and Lycra Hifit fibres. Reflecting on the company’s manufacturing philosophy, Smith previously noted, “We usually produce in regions where our clients are operating.” The Yinchuan project, which involved taking over a previously suspended initiative not far from the Mongolian border, is strategically positioned to manufacture less high-tech products. This move is designed to free up capacity at existing sites, enabling them to focus on increasing output for The Lycra Company’s more sophisticated product lines.

Beyond its recent expansion, The Lycra Company is renowned for producing a diverse portfolio of innovative fibres under prominent brand names such as Lycra, Coolmax, Thermolite, Elaspan, Supplex, and Tactel. The company serves a vast network of over 300 international apparel brands, maintaining a significant presence in the global fashion and textile industries. Despite its strong market position, the group acknowledges evolving market challenges, with Smith identifying shifts in consumer trends, such as the decline in popularity of slim-fit jeans, as factors that continuously shape the industry landscape.

In the broader context of the global fibre market, elastane, also widely known as spandex, represented approximately 1.1% in volume of all fibres produced globally in 2024, with an estimated output of 1.5 million tons. Esteemed for its exceptional elasticity, elastane is an indispensable component in a wide array of products, particularly sportswear, swimwear, and various form-fitting garments. Its production contributes to the significant 69% share of global fibre production that is accounted for by synthetic fibres, illustrating its crucial role within modern textile manufacturing.