in

Danish toymaker Lego expands amid rising sales

COPENHAGEN, Denmark (AP) — Danish toy company Lego on Wednesday announced plans to invest more than $1 billion over 10 years to build a new factory in the U.S. state of Virginia and to expand an existing factory in Mexico.

The moves to North America follow Lego’s announcement last year of a similar investment in Vietnam to serve the Asian market.

“Our new factory in the United States and the increased capacity of our existing site in Mexico means that we will be able to better support long-term growth in the Americas,” Lego chief operating officer Carsten Rasmussen told the Associated Press.

The 1.7 million square foot (158,000 square meter) plant in suburban Richmond, Va., will employ more than 1,760 people, the company said. Construction of the carbon-neutral facility is expected to begin in the fall, with production expected to start in the second half of 2025.

The Virginia factory will be the seventh Lego factory in the world.

Its manufacturing site in Monterrey, Mexico, which primarily supplies the US market, will be expanded and modernized to meet growing product demand. Rasmussen called the expansion “significant”.

Lego has seen its profits, revenue and sales increase in recent years.

In March, the family-friendly toymaker announced that its net profit had increased by more than a third from last year, a 22% increase in consumer sales and 27% revenue growth. The upward trend is similar to that of the previous year.

The coronavirus pandemic likely explains some of the growth. As more children stayed home during the lockdowns, parents bought the colorful plastic Lego bricks to keep them entertained during the days of isolation.

“We’ve had some good years the past few years,” Rasmussen told the AP.

Lego factories on three continents have positioned the company well to meet changing demands. It produced in Mexico for its American markets and in China for its Asian market. Production for Europe comes from factories in the Czech Republic, Hungary and Denmark.

To support growth in Asia, Lego announced in December that it would invest more than $1 billion, build its first carbon-neutral factory in Vietnam and create up to 4,000 jobs over the next 15 years.

Construction is expected to begin in the second half of 2022 and production is expected to start in 2024.

#Danish #toymaker #Lego #expands #rising #sales

Post expires at 12:06am on Monday June 27th, 2022