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In lugnet.lego, Tom Stangl writes:
> I still fail to see how this will save them money, unless:
> 1 - having the extra sets of molds/machines is killing production costs
> 2 - the raw ABS is ONLY available from Europe.
>
> I can't see how molding the bricks overseas and shipping them to the US will be
> cheaper than molding them here UNLESS the raw ABS is only available overseas and
> they are currently shipping it HERE to be molded. Even then, the shipping costs
> will be GREATLY increased, as molded bricks take up MUCH more volume than raw
> pellets.
<snip>
> --
> | Tom Stangl, Technical Support Netscape Communications Corp
> | Please do not associate my personal views with my employer
Lets try a different approach to understanding this. TLC recently opened a new
production facility in the Czech Republic. This is talked about in this press
release...
<http://www.lego.com/info/pressspecific.asp?PressReleaseId=151&Year=2000>
The important part is the last lines in the release "It is also considered a
great asset for the LEGO Company that it is possible to draw upon fully
qualified labour in The Czech Republic. Another great asset is the substantially
lower level of cost"
Its cheaper to do business there. Combine this with the action in Enfield, may
give a fell for just how much less expensive it is to move it all to Europe.
A while back there was some speculation (on lugnet) that Enfield was not making
the special parts, but only making bricks. If this is true, then I don't expect
to see much change in MSRP (other than possibly the brick-only buckets and
tubs). Lego will still mold to the same high standards, probably using the same
ABS source and possibly even the same equipment.
Ray
l#124
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