A Chinese factory contracted to produce figurines of the 2010 World Cup mascots denied Wednesday allegations of sweatshop conditions and use of child labor, saying it operates in complete compliance of Chinese laws.

Global Brands Group (GBG), a Singaporebased company licensed for all FIFA World Cup 2010 merchandise, said Tuesday that it has suspended its approval of Shanghai Fashion Plastic Products to produce the leopardlike mascot Zakumi after an audit showed the factorys operations were flawed.

The audit was prompted after Britain's News of the World newspaper alleged that the company employed teenage workers, ran 13hour shifts and paid workers only 21 yuan ($3) a day.

"Our company, if not the best, remains one of the top two companies in the whole of the Yangtze River Delta area. We employ workers in strict compliance with Chinese laws," a company official who only gave her surname, Chen, told the Global Times Wednesday.

Shanghai Fashion Plastic Products, established in 1975 in Hong Kong, specializes in manufacturing plastic gifts, anatomical models, mannequins and other products to Japan, Europe, the United States and other countries.

It also manufactures mascots for the 2008 Olympic Games in Beijing and this year's World Expo in Shanghai and currently employs more than 500 workers in Guangdong and Shanghai, according to the corporate profile published on its website.

Chen said the company's production of the Zakumi toys had been suspended but production of other products remains normal.

"The suspension of Zakumi does impact our business but will not paralyze our operation," he said.

A Global Times reporter was denied access to the factory Wednesday afternoon. There were no workers available for interview.