Environmentally friendly garment company Hemptown Clothing said it has formed two new subsidiaries and is changing its name to Naturally Advanced Technologies.

The two new subsidiaries are CRAILAR Fiber Technologies and Hemptown Clothing. They will both operate under parent company Naturally Advanced Technologies.

CRAILAR was formed to produce high-tech, high-strength natural fibre for the textile and composite industry. Hemptown Clothing, the company's legacy business, makes eco-friendly fibre garments for the sportswear industry.

"Our name change to Naturally Advanced Technologies and the addition of the two new subsidiaries reflects our strategic decision to focus on the development and commercialisation of CRAILAR," said chief executive Jerry Kroll.

"CRAILAR is a new biotech enzyme process we have developed in collaboration with the Canadian Government National Research Council and the Alberta Research Council, which has the potential to significantly change the production of textile bast fibres such as hemp, bamboo and flax and to replace composite fibres, including glass."

Kroll said CRAILAR expands the company's target markets beyond the hemp blend fabrics sector into areas such as apparel, medical and hospitality textiles, and auto, marine and airplane parts.

"…energies are now focused on capitalising on the significant growth opportunity CRAILAR presents" , Kroll added.