LEGO Group to build new factory in Hungary
80,000 m² energy friendly factory to replace present LEGO plant in Nyíregyháza. New facility is expected to create 250 extra jobs.
80,000 m² energy friendly factory to replace present LEGO plant in Nyíregyháza. New facility is expected to create 250 extra jobs.
In 2012 the LEGO Group is planning to begin construction of a new LEGO factory in Hungary, which will produce LEGO® and DUPLO® products.
The first phase – a pallet warehouse extending to nearly 13,000 m² – is expected to be completed in 2012. Inauguration of the second phase is planned for 2015. It will bring the area of the factory to approx. 80,000 m² and will incorporate facilities for moulding, decorating, assembly, pre packing, packing, pallet warehouse and high bay warehouse. By 2015 the factory will be equipped with 450 moulding machines and the possibility of extension.
The LEGO Group is in the process of finding approx. 100 hectares of land for the factory. As part of this process, the LEGO Group is in contact with owners of land that is considered appropriate for the purpose, and an application has been filed with the local authorities for permission to use this land for industrial purposes.
An announcement on the final location of the factory is expected over the next 6-9 months.
Jens Peter Clausen, Managing Director, says:
“Existing production at Nyíregyháza has proved capable of delivering high quality products at competitive prices. However the current factory and flow is not supporting LEGO Group requirements. The factory investment is based on long term plans, demonstrating that the LEGO Group believes the Nyíregyháza area is the right place for DUPLO production for many years to come.”
100 m Euro investment
The LEGO Group is investing EUR approx. 100m in buildings and production plant – but as the planned facility is expected to provide new jobs for 250 people based on the existing business plan over the next four years, it is also eligible for a government subsidy in Hungary.
Part of the subsidy will be invested in creating a modern, energy friendly factory drawing upon sources of renewable energy. The safety and logistics for workers and visitors coming and leaving the facility will also be a considerable part of the re-investment. Production in the new factory will be based on a modular production platform that will utilize the newest high-technological equipment. Employee safety will have high priority, and LEGO values, brand and history will have a high profile in restrooms, canteens and corridors.
The new factory will also operate a very open visitors’ policy. At first floor level there will be a viewing walkway from which visitors will be able to watch production – without jeopardising their safety.
Jens Peter Clausen: “We receive many inquiries from groups wanting to visit the factory, and we organise an average of about two tours a week – kindergartens, schools, universities and so on. Huge numbers of children visit our premises. We look forward to welcoming them at our new premises.”
After the inauguration of the new factory in 2015, the old premises - which are currently leased - will be handed back to the owners of the facilities, Flextronics.