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Strong Growth Prompts LEGO Expansion in Czech Republic
By Richard Higgs, European Plastics News
October 9, 2012
Global toy maker LEGO Group has announced fresh expansion plans for its already
substantial production plant in Kladno, Czech Republic.
This facility, which manufactures the group’s eponymous building brick products,
has already been extended twice since 2010. Now, LEGO is due to start work on a
new project in December which will add another 14,200m² of processing and
assembly space to the factory from 2014.
The two-stage project is scheduled to result in a facility with a total covered
area of 100,000m2 at the Czech site. In the first phase, a 3,200m² upper
extension will be added to a unit of the processing department where components
are decorated and assembled. The additional section will also process LEGO
parts.
Last year, the company purchased a neighbouring industrial site in Kladno. In
early 2013, it plans to demolish an existing building on that site to make way
for the second phase of its own expansion. There LEGO will construct an 11,000m²
product packing hall and an underground car park for 250 vehicles, it annuonced.
The Danish-headquartered group expects its latest expansion scheme at Kladno,
which it said has been prompted by LEGO strong growth, will require investment
of more than €13.4m (£10.8m). It plans to hire another 300 workers as a result
of the new project.
“It confirms our strong belief in the Czech factory and in the skills and
culture of its employees. We expect a lot from our colleagues at this site, and
the factory is part of our future,” said LEGO Group CEO Jørgen Vig Knudstorp.
LEGO admitted that it had allowed for possible further expansion at the Kladno
site, but was surprised that it was needed so soon. Continuing sales growth has
meant it must add more space to avoid a squeeze on capacity there, it said.
This summer, LEGO group began the construction of a €125m (£101m) 80,000m² green
field factory complex near Nyíregyháza in Hungary to manufacture its ‘Duplo’ and
LEGO brand toys. That project is also set for completion in 2014.
PRW.com
-end of report-
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