LEGO invests over $ 1 billion in US brick factory

LEGO invests over $ 1 billion in US brick factory

Photo: ANP

Toy maker LEGO is investing $ 1 billion (9 959 million) in its first brick factory in the United States. The Danish manufacturer of reputed construction blocks wants to cut its supply chain with the factory. The company also notes the high demand for plastic construction blocks. The United States is one of Lego’s largest markets.

The 160,000 square meter factory is expected to be operational by the second half of 2025. The production site should employ at least 1760 people. The US market is currently supplied from a factory in Mexico. The Virginia plant will be the Danish company’s second plant in North America and seventh worldwide. The company announced last year that it was building a new factory in Vietnam.

The investment is made in line with the company’s strategy of positioning production close to key markets. As retailers around the world struggle with supply issues, this strategy certainly works this time around.

According to LEGO, the factory will be carbon neutral. The plant is powered by renewable energy, which is being manufactured at the on-site solar park, the company said. LEGO has previously promised to replace oil-based plastic blocks with blocks made of stable materials by the end of this decade.

The company now employs approximately 2,600 people in the United States, where it operates 100 stores. LEGO produces about 100 billion bricks annually and employs about 24,000 people worldwide.

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