The UK's Quantum Clothing Group and two Sri Lankan companies - Brandix Lanka and Lanka Equities Limited - have set up a new company called  Stevensons Lanka (Pvt) Limited, in Sri Lanka. 

The new company, which is a garment dyeing operation, is located at the Biyagama Export Processing Zone.

"The total investment for the project is US$1.32m with the joint-venture equalling one third between all 3 parties," said a press release from Stevensons Lanka.

"This venture will go a long way in reaching our goal of expanding our business. We aim to capitalise on the lower operational costs in Sri Lanka in comparison with the UK," said Mike Shotton, chairman of the Quantum Clothing Group, in the press release.

Stevensons Lanka is expected to begin commercial operations by end of September 2006 and is currently the only company in Sri Lanka exclusively focusing on garment dyeing

The plant will initially be able to accommodate cotton, wool, acrylic, and blends of cotton and wool garments. The plant also has a colour spectrephotometre and the required software to measure and recognise colour variations. 

The Quantum Clothing Group was created as a result of a management buyout of Coats Viyella in December 2000. The group has an annual turnover of about US$190m and produces a range of products in 11 countries.

Brandix Lanka is the largest Apparel exporter in Sri Lanka with an annual consolidated group turnover that exceeds US$ 280m.

Lanka Equities is among the top apparel exporters in Sri Lanka with a turnover of over US$75m.

By Dilshani Samaraweera.