While most spandex producers are still fighting price wars in the conventional denier red ocean, leading players have already moved their capacity battles below 20D. On August 18, Xinxiang Chemical Fiber broke ground on phase two of its 100,000-ton functional spandex project in Xinxiang, Henan, with all production dedicated to functional fine-denier products of 20D and below. This move reflects a deep restructuring in the spandex industry—low-end capacity is exiting faster, and the high-end segment is becoming the watershed that determines a company's position over the next five years.
Background
Phase two of the project includes a main production workshop with an annual capacity of 50,000 tons and supporting facilities, covering a floor area of 65,000 square meters. The plant adopts continuous polymerization dry spinning, featuring a globally unique 200-position spinning duct, along with automatic doffing and intelligent sorting systems. According to the company, the project integrates 5G and industrial internet concepts, with AI-based energy efficiency distribution for power systems, aiming to set a benchmark for smart, digital, and energy-efficient factories. Phase one is expected to be operational by the end of this year, after which the entire project will reach a total annual capacity of 100,000 tons of functional spandex.
Notably, this project is positioned as a strategic move for the company's 15th Five-Year Plan. In the context of industry-wide overcapacity, Xinxiang's decision to expand high-end fine denier capacity is not blind expansion but a response to changing demand. Sub-20D fine denier spandex, with its superior skin feel, delicate elasticity, and adaptability, is seeing rising penetration in sportswear, high-end home textiles, and functional intimate apparel, making it a core need in textile industry upgrades.
Industry Impact
At the industry level, the domestic spandex market is experiencing a parallel process of low-end capacity elimination and high-end expansion. Oversupply in conventional denier grades has led to frequent price wars, while ultra-fine, functional, and green products remain in short supply with firm prices. This divergence means the era of pure scale expansion is over, and technical barriers and differentiation capabilities have become new competitive thresholds. Xinxiang's phase two project precisely targets the high-end segment, helping the company shift from scale-oriented to quality-and-efficiency-oriented development, enhancing product added value and market pricing power.
For downstream buyers, the expansion of high-end fine denier capacity will ease the supply shortage of quality raw materials, especially stable supply of sub-20D grades. Procurement strategies that previously relied on imports or a few suppliers may need adjustment. Meanwhile, smart production ensures consistent quality and delivery efficiency, reducing inspection costs and production losses for downstream users. For the traditional chemical fiber industry, this project also fills a high-value-added link in the regional supply chain, pushing Henan and the national textile new materials toward self-reliance.