Updated 07:44 AM EDT, Fri, Mar 29, 2024

Lego Expands to Mexico & More Countries to Meet Rising Toy Demand

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The LEGO Group is expanding three of its factories to meet rising demand for its toys.

The factories marked to undergo expansion are located in Mexico, Denmark, and Hungary, according to Europe's biggest toymaker's website. In Nov. 2015, the current LEGO factory in Monterrey, Mexico will begin its expansion that will add up to 190,000m2, with investments consisting of additional moulding, processing, packing, and warehousing. The expanded factory is planned to be fully operational by 2022 with an additional 3,000 employees, said CEO and Executive VP Bali Padda.

Investments were also made to the company's sites in Billund, Denmark and Nyíregyháza, Hungary. The one in Hungary will undergo major expansions in 2016 such as the installation of moulding machines in a nearby rented facility, additional warehousing, and processing facilities, LEGO further reported. According to Padda, they aim to invest a EUR 3 digit million amount towards 2020.

The planned expansion in Hungary will provide 150 additional jobs next year. Depending on the development of the company's sales and future investments, as many as 1,600 new jobs may be available in Nyíregyháza by 2020, LEGO's website added.

The company's headquarters in Billund will be updated and modified with new moulding technologies in 2016. Last June, the LEGO Group announced a 1 billion Danish krones investment to find new sustainable alternatives to current raw material, including the establishment of a Sustainable Materials Center and hiring roughly 100 employees, LEGO noted in its press release.

"As a company we are dedicated to inspire and develop children all over the world through great LEGO play experiences, and we are thrilled to experience a really high global demand from children and customers. The investment plans we share today will enable us to reach even more children in the future with fun LEGO products of the highest quality," said John Goodwin, CFO and Executive Vice President of the LEGO Group, as quoted in the company's report.

He continued, "It also means that we anticipate welcoming thousands of new employees to the Group as we continue to expand our global presence. This is a significant announcement for us and it sends a clear signal that we are committed to ensuring that we can meet the future product demands of children and customers."

The LEGO Group's most recent factory expansion is in Kladno, Czech Republic earlier this year. The company, which is owned by Denmark's billionaire Kristiansen family, is also currently constructing its first site in China, which is set to begin manufacturing this year and be fully operational in 2017, Bloomberg reported. Last year's "The Lego Movie" helped the toymaker triumph over U.S. rivals Mattel Inc. and Hasbro Inc. in recent years' market share.

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