Lego is responding to growing demands in Asia by investing $1 billion to build a toy factory in Vietnam.
Second site in Asia: In a recent press release, the Danish toy company revealed that it is erecting a new 44-hectare (109-acre) facility in Binh Duong Province, which is about 50 kilometers (31 miles) from Ho Chi Minh City.
- The site, which will cater to consumers in the Southeast Asian region, will be the company’s sixth factory, in addition to the one in China, the one in Mexico and the three in Europe.
- Construction is set to start in the latter half of 2022 with a 2024 target for the first toy production. Once built, the site is expected to generate up to 4,000 jobs over the following decade and a half.
- “This investment will help us to bring the power of Lego play to future generations of children,” Lego’s Chief Operations Officer Carsten Rasmussen was quoted as saying. “We want to inspire and develop the builders of tomorrow, and it is critical that we do so by acting in the most sustainable way possible.
- In an interview with the Financial Times, Rasmussen said the company sees growth opportunities in Southeast Asia “above all” other regions.
- “Our strategy is to have our manufacturing locally and adapt to changes in demand locally,” he noted. “It has really helped our resilience this year.”
- Lego opened its largest Southeast Asian store at 3,165 square feet near the Universal Studios Globe in Sentosa, Singapore this year. It also opened Southeast Asia’s first Lego “retailtainment” in Jakarta.
Carbon neutral factory: The project, which is made possible through a Memorandum of Understanding between the Lego Group and Vietnam Singapore Industrial Park Joint Venture Company Limited (VSIP), is aiming for a facility that will “be the Lego Group’s first carbon neutral run factory.”
- The two parties have committed to replacing the vegetation removed due to construction by planting 50,000 trees in Vietnam.
- In addition to the planned solar panels on the new factory’s roof, VSIP will build a solar project near the plant to produce 100% of its power needs.
- The compound will also “accommodate electric vehicles and be outfitted with energy efficient production equipment.”
Featured Image via Lego