Children's clothing maker Pagh Morup Bornetojskonfektion A/S on Monday announced plans to set up a factory in the Ukraine next year.

The new plant will begin production next summer and employ around 600 people. The firm currently has two plants and 1,000 workers in Poland but wants to relocate most of that output due to rising salary costs.

The company enjoyed a turnover of $31 million last year and employs around 100 people in Denmark.