Lego to invest more than $1B in new Virginia factory

Virginia Gov. Glenn Youngkin presents a Virginia state flag to Lego Group CEO Niels Christiansen.
AP

Toymaker Lego on Wednesday mentioned it will make investments greater than $1 billion in a manufacturing unit in the USA to shorten provide chains and sustain with rising demand for its coloured plastic bricks in certainly one of its largest markets.

The manufacturing unit in Chesterfield County, Va., would be the Danish firm’s second in North America and seventh worldwide, after it introduced a brand new manufacturing unit in Vietnam final yr. 

The funding is in step with a decade-old technique of inserting manufacturing near its key markets, which the corporate says has been useful as the worldwide retail business faces pandemic-related provide chain points. The plant may even be carbon impartial.

“Our technique to be near our core markets has solely been confirmed just lately,” Chief Operations Officer Carsten Rasmussen instructed Reuters.

The toy market is characterised by massive seasonal fluctuations, whereas greater than half of the corporate’s merchandise in shops are new gadgets, he mentioned.

“It’s tough to foretell what kids and adults need to purchase for a birthday or for Christmas. So the response time may be very worthwhile to ensure now we have the appropriate merchandise on the cabinets,” mentioned Rasmussen.

Lego has pledged to interchange oil-based plastic bricks with ones created from sustainable supplies by the top of the last decade.

REUTERS

The manufacturing unit will probably be powered by renewable vitality produced at an onsite photo voltaic park, the corporate mentioned.

Lego has pledged to interchange oil-based plastic bricks with ones created from sustainable supplies by the top of the last decade.

The 1.7 million square-foot manufacturing unit is scheduled to be operational within the second half of 2025 and can make use of greater than 1,760 folks. Lego closed a smaller manufacturing unit in Connecticut in 2006, and the US market is at the moment provided from a manufacturing unit in Mexico.

“The US market has completed rather well lately. We see enormous potential in the USA and all through the Americas,” mentioned Rasmussen.

The corporate now employs round 2,600 folks in the USA, the place it operates 100 shops.

The manufacturing unit is scheduled to be operational within the second half of 2025 and can make use of greater than 1,760 folks.

AP

The family-owned firm outpaced development within the toy business final yr, with gross sales rising 27% to 55.3 billion Danish crowns ($7.8 billion). The corporate can be investing in rising capability at present factories in Europe and China.

Lego produces roughly 100 billion bricks annually and employs round 24,000 folks worldwide.