The Lycra Company has opened what is now its largest spandex factory, its second in China. Located in Ningxia Province, the factory represents an investment of 800 million Chinese yuan renminbi (€90m), split between Lycra and Yinchuan Financial Capital Investment Group, and will employ some 500 people.
The Lycra Company has opened what is now its largest spandex factory, its second in China. Located in Ningxia Province, the factory represents an investment of 800 million Chinese yuan renminbi (€90m), split between Lycra and Yinchuan Financial Capital Investment Group, and will employ some 500 people.
Lycra’s production capacity will in consequence rise by 30,000 tons at first and by 120,000 tons over time. The initial annual yield should amount to RMB 1 billion (€121m). The factory will help meet demand notably in China and the Asia-Pacific region.
Lycra says the factory will benefit from its “global R&D” and constitute a “highly automated, intelligent production ecosystem” – one that will “align with the company’s sustainability framework, driving energy savings, reducing emissions, and advancing manufacturing processes […].”
“China is strategically important, representing over 50% of the global apparel production market, and this partnership enables us to optimize our product mix more broadly while meeting the increase in demand for quality spandex,” says Lycra CEO Gary Smith.
Why it matters
Many sports brands incorporate Lycra fabrics into their products – e.g., Nike in its Flyknit for sneakers, Adidas in its similar Primeknit, Speedo in its swimsuits, Under Armour in its moisture-wicking apparel, Athleta and Puma in their own apparel – and most if not all of these companies farm out their manufacturing to the Far East.
Although still headquartered in its country of origin, the US (Wilmington, Delaware), Lycra has been under foreign ownership – indeed, Far Eastern ownership – since mid-2022. The present owners are four: Lindeman Asia (South Korea), Lindeman Partners Asset Management (South Korea), Tor Investment Management (Hong Kong) and China Everbright Limited (China).
The Yinchuan factory has been in the works since at least May 2024, when Smith, new to the CEO post, told Fashion Network that Lycra would be “taking over a plant in Yinchuan, not far from the Mongolian border, a project initiated by someone else and then suspended.” In other words, the project predates the tariffs of US President Donald Trump.
