Seamless apparel manufacturer Tefron Ltd has set up a new business unit to bolster its position in the US sports active wear market.

Headquartered in Lake Oswego, Oregon, the Sports Innovation Division or 'Sid' marks a noticeable shift in the company's long term product strategy which has traditionally focused on seamless intimate wear.

The division will produce customised hi-tech fabric designs from the first-quarter of 2005.

Tefron CEO, Yos Shiran said: "The very positive response to our sports and active wear apparel will be key in strengthening Tefron's financial results in 2005."

Sid, which is headed by Amit Tal, also intends to develop a Studio of Innovation and Design, an incubator for the future of seamless technology and advanced 3-D design in Portland, Oregon.