Lego to Expand Production Capacities
Towards 2022 the Lego A/S, Billund, Denmark, plans to expand and invest significantly in factories in Mexico, Hungary and Denmark to match the increasing demand for Lego products.
In November 2015, the first step to expand the current Lego factory in Monterrey, Mexico, begins. The Mexican factory is planned to undergo a massive expansion, adding up to 190,000 m2 to the factory. The investment in the factory will potentially include additional molding, processing, packing and warehousing and consist of a EUR 3 digit million amount towards 2022, where the expansion of the factory is planned to be fully operational. “The exact details of the expansion and investment will naturally depend on the future development in demand for Lego products. Based on our current expectations we project an additional 3,000 colleagues in the factory in Mexico by 2022. Construction will begin before the end of 2015, and manufacturing will begin in 2018 according to our current plans”, says Bali Padda, Chief Operations Officer and Executive Vice President.
The Lego factory in Nyíregyháza, Hungary, is also planned to undergo significant expansions. In order to meet the expected demand from customers and consumers, the Lego Group will begin installing molding machines during 2016 in a nearby rented facility and begin expansion of the Lego factory with additional warehousing and processing facilities in the near future. The planned expansion in Hungary will mean that in 2016 an additional 150 employees are expected to be recruited. Depending on the development of Lego sales and potentially further investments made, as many as 1,600 new jobs may be created in Nyíregyháza towards 2020.
The Lego Group will also continue to invest in the Lego factory located at the company’s headquarters in Billund, Denmark. In June 2015, the Lego Group announced a DKK 1 billion investment to find new sustainable alternatives to current raw materials. This includes the establishment of a Sustainable Materials Centre, which will be based in Billund, and recruitment of approximately 100 employees to work on this challenge.
In addition, the existing moulding facility in Billund will be further updated and modified with new moulding technologies during 2016. “Our molding facility in Billund plays an important part in our ability not only to deliver products to children globally but also to continue to innovate and lift our manufacturing know-how to new levels across the globe. In 2016 we will invest a EUR 2 digit million amount in new manufacturing technologies in Denmark, which will improve our ability to deliver the products our customers demand,” says Bali Padda.
The Lego Group most recently opened an expansion of its manufacturing site in Kladno, Czech Republic, earlier this year and is currently in the process of constructing its first factory in China, which is set to start manufacturing this year and be fully operational by 2017.
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