Speedo International, UK, said to be the world’s leading swimwear manufacturer, comes to Sri Lanka in a US$ 8.5 million joint venture investment with MAS Holdings Ltd., the largest manufacturer of intimate apparel in the country, says a press release.

MAS Holdings, with a turnover of $ 225 million last year, has brought in a total of $ 125 million in investments to the country’s apparel sector. Last year, the MAS Group accounted for 4.7% of the country’s total exports, it said.

Manufacturing for Speedo which begins with a basic competition swimwear, is expected to progress to manufacture Speedo’s patented, state-of-the art, ‘fast skin’ bodysuits in which 27 of 33 Olympic gold medals were won during the Sydney Olympics last year.

The company has set its target to manufacture these custom tailored suits for athletes competing in the 2004 Athens Olympics. Speedo will invest in Linea Aqua (Pvt) Ld., an exclusive swimwear manufacturing plant which is a BOI approved project.

Linea Aqua (Pvt) Ltd is expected to become the primary manufacturing base for Speedo Swimwear globally, with a down-scaling of Speedo’s manufacture in China and Thailand.

The entrance of Speedo signals the first joint venture the MAS Group has entered into with a leading sportswear manufacturer. Linea Aqua (Pvt) Ltd is a three-way joint venture between Speedo, MAS Group and Brandot International based in the USA.

Each shareholder will hold a joint stake of 33 1/3% of the total equity. The foundation stone for the construction of the plant which will be located on a 5 1/2 acre plant at Giridara, Hanwella, was laid on Monday. It is expected to go into commercial production next March.

The company will initially begin operation with an employee base of 500. This figure is expected to increase to a 1,000 within two years and 2,000 by 2005, based on projected volumes of production.

While the plant would primarily manufacture swimwear for Speedo and Victoria’s Secret, USA, it is envisaged that several other leisure swimwear manufacturers would use this state-of-the-art facility for production as well. MAS’ latest ventures, Textured Jersey Lanka (Pvt) Ltd, Prym Newey Lanka (Pvt) Ltd and Linea Aqua (Pvt) Ltd., collectively amount for and inflow of $ 10 million.