Global capacities for polyester fiber reached 20.7 million ton a year by the end of 2011, where capacity increase for the year was 2.66 million ton. China was the main contributor to capacity expansion in 2011 and also the most important supplier of polyester fibers. In 2011, China has added 2.22 million ton of polyester fibre capacity taking its total capacity to 12.68 million ton a year. Total production capacity of polyester filament industry increased 5.4 million tons in 2011, as polyester manufacturer in 2010 earned enough and developed a strong will to expansion the capacity. Capital flow from others fields also desired to enter the polyester industry, as new capacity. The total capacity stood at 34.8 million tons in 2011. The Asian region accounted for the entire capacity expansion and accounted for over 39% of global capacity. Capacities in all the other regions had either declined or remained steady. Middle East was seen slowly moving up in capacity building. Global polyester filament market was troubled by over capacity. The emergence of new technologies, attractive margins, and high economic growth rate triggered capacity explosion in the industry far more than demand. Excess supply remained an issue despite substantial slowdown in capacity growth in numerous developing markets including China. Several players in the Western countries opted to consolidate and shut plants to deal with the increasing operating costs. Contrastingly, players in Asia-Pacific and in the Middle East have raised production capacities.