The Lycra Company opens in China its largest elastane factory in the world

The Lycra Company’s new elastane plant in Yinchuan, in China’s Ningxia province, has an output capacity of 30,000 tons that could eventually be increased to 120,000 tons, and was set up to meet the Asia-Pacific region’s growing demand.

The Lycra Company has invested CHY800 million (€97 million) with the Yinchuan Financial Capital Investment Group into the factory, which is expected to generate nearly 500 job opportunities and a revenue in the region of CHY1 billion (€120 million).

“China is strategically important, representing over 50% of the global apparel production market,” said Gary Smith, CEO of The Lycra Company. “This partnership enables us to optimise our product mix more broadly, while meeting the increase in demand for quality spandex [elastane],” he added.

The Yinchuan factory is the second production site opened by The Lycra Company in China, besides the plant inaugurated in Foshan in 2025, which caters directly to the Chinese and Asian markets for Lycra and Lycra Hifit fibres.

“We usually produce in regions where our clients are operating,” Smith told FashionNetwork.com last year, adding that “we are taking over a plant in Yinchuan, not far from the Mongolian border, a project initiated by someone else and then suspended. We will be able to manufacture our less high-tech products at this new site, and increase capacity for our more sophisticated products at our existing sites.”

The Lycra Company produces innovative fibres under the brand names Lycra, Coolmax, Thermolite, Elaspan, Supplex and Tactel, and serves over 300 international apparel brands. Last year, Smith identified trend evolutions as some of the challenges faced by the group, for example slim-fit jeans falling out of fashion.

In 2024, elastane, also known as spandex, accounted for approximately 1.1% in volume of all fibres produced globally, with an estimated output of 1.5 million tons. Appreciated for its elasticity, elastane is widely used for sportswear, swimwear and form-fitting garments, and its output is part of the 69% share of global fibre production accounted for by synthetic fibres.