Lego is building its first US manufacturing facility!
The first LEGO US manufacturing facility will be located in Chesterfield, Virginia which is located just south of Richmond. It will be a $1 billion, 1.7 million square foot facility with 13 buildings equipped with rooftop and ground solar panels. The facility also includes an on-site solar plant. It will be completed in 2025. It will have the same factory blueprint as other Lego factories. The facility will employ over 1,700 people in molding, processing, and packing machinery. 500 people are being required for a temporary packing facility currently.
This comes on the heels of a $500 million investment to expand the first North American facility in Monterrey Mexico.
At this time, Lego has manufacturing facilities in Denmark, the Czech Republic, Hungary, and China. A facility in Vietnam is planned as well.
Strategically, this will bring production much close to the consumers in the United States which is a major market for Lego. Given the logistics nightmare of the pandemic, companies are moving manufacturing onshore. Lego factories are highly automated with expensive machinery that is less reliant on factory workers. In this situation, I would argue it makes sense to be located in North America and this is a smart move.
Works Cited:
https://meadowville.com/lego/
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