Spanish manufacturer of elastic fabric for the underwear, swimwear and the sportswear markets Dogi International Fabrics S.A. is joining with Elastic Fabrics of America (EFA) and Mas Holdings in a $25 million elastic fabric plant in Sri Lanka. The location will be the Asian Apparel & Fabric Technology Park in Thulhiriya.

The technology park specialises in underwear and expects to attract investment of some $100 million for the various stages in the elastic fabric manufacturing and finishing process, with the aim  of becoming the new underwear centre for the subcontinent.

CEO of DogiEFA Dhananjaya Rajapaksha believes that the plant has the “global capacity and scope to meet the needs of the world’s leading underwear brands”. Construction of the factory is to begin in August, and should be in full production by June 2007.

All the elastic fabric used in Sri Lanka is currently imported and Mr Rajapaksha has estimated that by 2008 the plant will be supplying between 20-30% of the country’s elastic fabric.