Global toy maker Lego plans to commence construction this summer on a new €125-million (US$166-million) factory complex near Nyíregyháza, Hungary, to manufacture its Lego and Duplo brand products. The company says the first phase, a nearly 13,000-sq.-m. (140,000-sq.-ft.) pallet warehouse, will be completed in 2012.
The second phase, set for completion 2015, will have facilities for molding, decorating and assembly. The factory will be equipped with 450 molding machines, with room for expansion.
Lego currently employs 1,300 during peak production months at a facility leased from Flextronics in Nyíregyháza (“nee’rej-hä’zô”), a city in northeast Hungary north of Debrecen.
“Existing production at Nyíregyháza has proved capable of delivering high-quality products at competitive prices,” said Jens Peter Clausen, managing director. “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.”
The Lego Group expects to create 250 new jobs over the next four years and is eligible for a government subsidy in Hungary. The company says 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 will also be a considerable part of the re-investment.
“We receive many inquiries from groups wanting to visit the factory, and we organize an average of about two tours a week — kindergartens, schools, universities and so on,” Clausen says. “Huge numbers of children visit our premises. We look forward to welcoming them at our new premises.”