Legoland New York Resort theme park holds press preview before opening in Goshen, New York

Lego will invest more than a billion dollars in an American brickyard

COPENHAGEN, June 15 (Reuters) – Toymaker Lego said on Wednesday it would invest more than $1 billion in a factory in the United States to shorten supply chains and meet growing demand from its customers. colored plastic bricks in one of its biggest markets.

The factory in Chesterfield County, Va., will be the Danish company’s second in North America and seventh in the world, following the announcement of a new factory in Vietnam last year. Read more

The investment is in line with a decade-old strategy of placing production close to its key markets, which the company says has been beneficial as the global retail industry faces supply issues. pandemic-related supply chain. The plant will also be carbon neutral.

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“Our strategy of being close to our main markets has only recently been confirmed,” chief operating officer Carsten Rasmussen told Reuters.

The toy market is characterized by significant seasonal fluctuations, as more than half of the company’s products in stores are new items, he said.

“It’s hard to predict what children and adults want to buy for a birthday or for Christmas, so reaction time is very helpful in making sure we have the right products on the shelves,” Rasmussen said.

The plant will be powered by renewable energy produced in an on-site solar park, the company said.

The Lego logo is pictured above the main gate of the new Legoland New York Resort theme park during a press preview of the park, which is currently under construction, with plans to open to the public in the summer 2021 in Goshen, New York, U.S., April 28, 2021. REUTERS/Mike Segar/File Photo

Lego has pledged to replace petroleum-based plastic bricks with bricks made from sustainable materials by the end of the decade.

The 160,000 square meter factory is expected to be operational in the second half of 2025 and will employ over 1,760 people. Lego closed a smaller factory in Connecticut in 2006, and the US market is currently supplied from a factory in Mexico.

“The US market has done very well in recent years. We see huge potential in the US and across the Americas,” Rasmussen said.

The company today employs approximately 2,600 people in the United States, where it operates 100 stores.

The family-owned company outpaced toy industry growth last year, with sales up 27% to 55.3 billion Danish kroner ($7.8 billion). The company is also investing in increasing the capacity of existing factories in Europe and China. Read more

Lego produces around 100 billion bricks every year and employs around 24,000 people worldwide.

($1 = 7.0998 Danish kroner)

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Reporting by Jacob Gronholt-Pedersen; Editing by Bernadette Baum and Mark Porter

Our standards: The Thomson Reuters Trust Principles.

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