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LEGO to build their first toy factory in China

Posted on March 19, 2013 by Prashant There have been 0 comments


LEGO the industry leader in the category of building sets and blocks announced plans to build their own factory in China. The factory will be set up in Jiaxing which is around 100 kms from Shanghai.

LEGO’s move to open a factory in China is in recognition of the growing toy market in Asia. LEGO sales in the Asian markets have grown by more than 50 percent annually in recent years. At present LEGO products sold in Asia are being shipped from Europe. However, the new factory will be able to supply upto 80 percent of all LEGO products sold in the Asian markets by 2017.

Well, the factory will be a boon for the Asian LEGO markets. LEGO products to be supplied in Asia will be molded and packaged in the new factory. The factory will run with the same technology, automation and standards for employee safety and product quality like the other LEGO factories. The new factory will also be more environment friendly as it will reduce the need to transport LEGO sets between Europe and Asia.

Facts about the new LEGO Chinese Factory:

(1)    This will be LEGO’s 5th factory after Denmark, Hungary, Czech Republic and Mexico

(2)    The construction of the factory will start sometime in 2014

(3)    The factory will be fully operational by 2017 and will have approximately 2,000 employees

(4)    LEGO is investing a whooping 3 digit million Euro figure in the Chinese factory

(5)    By 2017, the factory is planned to have an area of approximately 120,000 square meters

Research says that by 2016, the Asia-Pacific region is expected to become the world’s largest toy market. This goes to show that the timing to open the China factory is not a co-incidence. The Chinese factory will be LEGO’s own building block to optimize the growing demand in the Asian markets.

This post was posted in Toy News & Research