Lego increases commitment to European production

Firm plans expansion of the production capacity at manufacturing complex in the Czech Republic.
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As part of the strategy to grow its presence in Eastern Europe, Lego will add new buildings, including four new production halls, which is thought will create over 1,000 new jobs.

Lego intends to add a total area of 46,230m2 to the buildings, which will also allow for offices, a manipulation hall, a warehouse and other storage space.

Construction is due to start by June 2011. Work at the Kladno site was previously outsourced to Flextronics.

But, two years later in March 2008, the company took back direct control as part of a strategy aimed at taking back its manufacturing in-house.

Lego now manufactures its own products in Denmark, the Czech Republic, Hungary and Mexico.

Based on its recent growth, Lego has launched a programme of significant capacity increases. New moulding equipment was introduced at its plants in Hungary, Denmark and Mexico.

At Kladno, work was completed last year on the construction of a new warehouse building.

Lego’s other Eastern European plant is located in Nyíregyháza, Hungary.

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