By 2017 a new LEGO factory in Jiaxing, China is expected to be fully operational and have approximately 2000 employees.
The LEGO Group has
announced plans to build and operate its own LEGO factory in China. The
factory will supply products for the growing Asian market. Construction
is expected to begin in 2014.
“It is our
strategy to have production close to our core markets in order to secure
short lead-time and world class service to our customers and consumers,
and it has proven a successful strategy. Asia – including China – is a
future core market for the LEGO Group and therefore I am excited to
share our plans for the new factory. Having full control of the
production process is essential to deliver products of a consistent high
quality and safety and in harmony with our values” says Bali Padda, COO
by placing a manufacturing site in the region we reduce our
environmental impact as we will reduce the need for transporting
products from Europe to be sold in Asia.”
State-of the art factory
The factory will be built in the city Jiaxing, right in the
middle of the Yangtze River Delta and located approximately 100 km from
Shanghai where the LEGO Group is planning to locate a regional
distribution centre for Asia.
“The new factory will be built and run with the same technology,
automation and standards for employee safety and product quality as our
LEGO factories in Denmark, Hungary, Czech Republic and Mexico, and it
will have a distinct LEGO look and feel.” says Michael McNulty, Senior
Vice President, Procurement.
Producing for Asia only
The LEGO Group currently does not operate its own manufacturing facility
in China, but with the new production site including moulding,
decoration and packaging facilities it will have a supply base for
future growth in Asia. LEGO Group sales in the region have grown by more
than 50 percent annually in recent years.
“Based on our current expectations for growth in Asia, the factory
should be able to supply approximately 70-80 percent of all the LEGO
products sold in the region in 2017. All products made in the new
factory will be sold in Asia,” says Michael McNulty.
Location with focus on employees
The location of the new factory, Jiaxing, has a population of 5
million and it has been chosen for several reasons, says Michael
“It is close to our regional distribution centre and the city has all
the facilities and infrastructure needed. But in addition, we believe
the location is perfect in regards to securing the best environment for
future LEGO employees. The city is the strongest possible match with
core LEGO values, and the plans for a sustainable city development is
Jiaxing has been named “National Health City”, “National Model City for Greening”, “National Garden City”.