Apparel manufacturing giant MAS Holdings and longtime supply chain partner Hellmann Worldwide Logistics are breaking ground on a new facility in Sri Lanka that will serve as a dedicated South Asian fashion hub for the third-party logistics (3PL) provider.

The infrastructure is designed to support regional distribution needs across Asia, Africa, and Europe, with the more than 86,000-square-foot facility expected to feature dual-zone humidity, climate control and solar panels, according to a statement.

The companies have not disclosed a timeline for the facility’s opening.

The hub aligns with Hellmann’s Forward2030 strategy, strengthening the company’s fashion vertical as one of the pillars of long-term growth within its global network. That strategy is aimed at expanding the company’s product portfolio, particularly in e-commerce logistics.

MAS Holdings has set its own broader 2030 target, with the manufacturer aiming to derive 75 percent of its revenue from sustainable products by the end of the decade.

The family-owned, Sri Lanka-based company has produced clothing for global apparel giants including Nike, PVH, Gap, Victoria’s Secret, Lululemon and Marks & Spencer, covering subsectors including athleisure, sportswear, intimates and wearable and health tech. MAS employs more than 100,000 workers in more than 50 facilities across 13 countries.

The site is located in Kimbulapitiya, in the Gampaha district of Sri Lanka’s western province, less than four miles from the island’s primary airport, Bandaranaike International Airport. It is separate from MAS Holdings’ manufacturing operations in the nearby Katunayake export processing zone.

In 2018, MAS and Hellmann established their joint venture, called Hellmann MAS Supply Chain (HMSC), to offer contract, warehousing and 3PL services to global fashion brands out of Sri Lanka.

The JV combined Hellmann’s global logistics expertise with MAS Holdings’ knowledge of apparel manufacturing and supply chain innovation, supporting international fashion brands with integrated, end-to-end logistics solutions across South Asia. With the partnership, HMSC also manages the procurement and coordination of MAS’ incoming air freight.

The newer investment reflects MAS’ continued commitment to strengthening Sri Lanka’s position as a globally competitive apparel hub, according to Shakthi Ranatunge, chief operating officer at MAS Holdings and board member of Hellmann MAS Supply Chain.

“Through our partnership with Hellmann, we are moving beyond traditional garment manufacturing to enable more integrated, end-to-end supply chain solutions for global brands,” said Ranatunge in a statement. “This facility enhances our ability to offer speed and agility while supporting the development of a more resilient and future-ready apparel ecosystem in Sri Lanka.”

The partnership comes as Sri Lanka’s apparel sector has endured a downturn as it deals with escalating fuel costs stemming from Iran war-driven oil spikes, as well as heightened electricity costs. Both expenses have compressed margins for manufacturers throughout the country.

In March, Sri Lanka’s apparel and textiles exports declined by 11.2 percent year over year to $440.3 million, primarily driven by a 12.8 percent reduction in shipments to the U.S. Exports to another major market, the EU, also contracted 2 percent. The two markets account for over half of total market share

Across the whole first quarter, apparel exports fell 8.1 percent annually to $1.3 billion, with shipments to the U.S. dipping 6.4 percent, while those to the EU fell 7.3 percent.

Like its South Asian cohort Bangladesh, apparel and textiles are Sri Lanka’s top export, representing 44 percent of goods shipped out of the country. MAS represents one of roughly 300 apparel manufacturers in Sri Lanka, including other major sourcing suppliers Brandix Apparel and Hirdaramani International Exports.

MAS shuttered one of its factories in Sri Lanka earlier this year, impacting 2,200 workers as the company sought to pivot away from a primarily cut-and-sew operation toward an expanded focus on knitting, dyeing and finishing.