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LEGO Group Builds Extra Capacity in Czech Republic
By Richard Higgs
Global toy maker LEGO® Group plans to expand the production capacity at its
manufacturing complex at Kladno in the Czech Republic. As part of the strategy
to grow its presence in the vibrant markets of Eastern Europe, LEGO of Billund,
Denmark, plans to create over 1,000 jobs when it adds additional buildings,
including four new production halls, at the site.
The Central Bohemian regional authority recently gave the expansion scheme the
green light following an environmental impact assessment. LEGO intends to add a
total built up area of 46,230m2, which will also allow for administrative
offices, a manipulation hall, warehouse and other storage space.
Construction of the new plant is due to start by June this year. Manufacturing
at the expanded plant will employ 600, while another 490 will work in the
administration area when the unit begins operating in the third quarter of 2013.
Work at the Kladno site, which has manufactured the LEGO Systems building brick
products, was formerly outsourced by LEGO to Flextronics, the global electronics
manufacturing services group of Singapore. But, two years later in March 2008,
the Danish toymaker took back direct control for production at Kladno as part of
a strategy aimed at taking back its manufacturing in-house.
That process was completed overall in 2009 and LEGO now manufactures its own
products in Denmark, the Czech Republic, Hungary and in Mexico. In that year,
the group saw major sales growth in almost all its markets and a 22.4% rise in
annual revenues.
Based on its success and on forecast continued growth for the company in coming
years, LEGO 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 Group other Eastern European plant is located in Nyíregyháza, Hungary.
prw.com
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