Subject:
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LEGO Group Takes Czech Production In-House
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Newsgroups:
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lugnet.mediawatch
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Date:
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Mon, 10 Mar 2008 22:02:05 GMT
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Viewed:
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7305 times
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LEGO Group takes Czech production in-house
(By Richard Higgs PRW.com)
LEGO says "best and most effective solution for us to run the factory".
March 10, 2008 - Less than two years after outsourcing labour intensive
production at a Czech Republic plant global toymaker LEGO Group has taken the
work back in-house.
In June 2006, LEGO handed responsibility for manufacturing and packing of its
core Lego System building brick products at the Czech Republic plant to
Flextronics - a Singapore-based electronics manufacturing services company.
From 1 March Flextronics relinquished control of production and the 700-strong
workforce at the Kladno, Czech Republic, facility. LEGO of Billund, Denmark,
already owns the plant site and equipment there. The Danish toymaker stressed
that employee conditions will not change although their employer has.
A LEGO spokeswoman said: "Together with Flextronics, we have come to the
conclusion that the best and most effective solution is for us to run the
factory in Kladno. Flextronics has done a really good job in Kladno, doubling
capacity while maintaining quality."
She added that the toy group has a model-building site close to the Kladno
production unit which is also located near LEGO European distribution center.
Kladno site is a strategic manufacturing location for the LEGO Group, due to its
close proximity to the group's large European market, according to the group
announcing the change. LEGO added will manufacture in Denmark and the Czech
Republic, and still work together with Flextronics in Mexico and Hungary, it
stated.
The 2006 outsourcing move was part of a three-year supply chain restructuring
programme involving relocation of LEGO labour-intensive manufacturing operations
from Western Europe and the US to Eastern Europe and Mexico.
The group switched moulding of its plastic building brick products to Kladno
from Denmark and Switzerland.
LEGO does not plan to take work Flextronics does in Hungary and Mexico in-house
because the electronics manufacturing services (EMS) firm owns those sites and
the partners aim to make production there even more efficient, stressed the LEGO
spokeswoman.
<http://www.prw.com/homePBP_NADetail_UP.aspx?ID_Site=818&ID_Article=24411&mode=1&curpage=0>
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