COPENHAGEN, Denmark (AP) — Danish toy firm Lego mentioned Wednesday it plans to speculate greater than $1 billion over 10 years to construct a brand new manufacturing unit within the U.S. state of Virginia and to enlarge an current manufacturing unit in Mexico.
The strikes in North America comply with Lego’s announcement final yr of an identical funding in Vietnam to serve the Asian market.
“Our new manufacturing unit within the U.S. and expanded capability at our current web site in Mexico means we will greatest assist long-term progress within the Americas,” Lego’s chief operations officer, Carsten Rasmussen, informed The Related Press.
The 1.7 million-square-foot (158,000-square-meter) manufacturing unit in suburban Richmond, Virginia will make use of greater than 1,760 individuals, the corporate mentioned. Building on the carbon-neutral facility is about to start within the fall, with manufacturing to begin within the second half of 2025.
The Virginia manufacturing unit would be the seventh Lego manufacturing unit globally.
Its manufacturing web site in Monterrey, Mexico, which primarily provides the U.S. market, will probably be expanded and upgraded to fulfill rising demand for merchandise. Rasmussen referred to as the enlargement as “vital.”
Lego noticed its revenue, income and gross sales surge lately.
In March, the family-owned toymaker reported its web revenue elevated by greater than a 3rd final yr, a 22% rise in client gross sales and income progress of 27%. The upward development was much like the earlier yr.
The coronavirus pandemic possible accounts for a few of progress. As extra youngsters stayed residence throughout lockdowns, mother and father purchased Lego’s colourful plastic bricks to maintain them entertained by way of days of isolation.
“We now have had some good years lately,” Rasmussen informed the AP.
Lego’s factories on three continents positioned the corporate properly to navigate shifting calls for. It produced in Mexico for its American markets and in China for its Asian market. The manufacturing for Europe comes from factories within the Czech Republic, Hungary and Denmark.
To assist progress in Asia, Lego introduced in December that it could make investments greater than $1 billion, construct its first carbon-neutral manufacturing unit in Vietnam and create as much as 4,000 jobs over the following 15 years.
Building is about to start within the second half of 2022 and manufacturing is because of begin throughout 2024.
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