- This will be LEGO’s second Asian facility, with construction beginning in the second half of 2022 and operations beginning in 2024.
- The total investment of the project is more than 1 billion USD on a land area of 44 hectares.
- The LEGO Group and VSIP will plant 50,000 trees in Vietnam to compensate for the greenery lost during the factory’s construction.
LEGO expands supply chain, locates factory near the main market
On the evening of December 8, Lego Group signed a Memorandum of Understanding with Vietnam – Singapore Industrial Parks Limited Liability Company (VSIP) to build a new factory in Binh Duong province, Vietnam.
The total investment of the project is more than 1 billion USD (including investment for solar energy production) on the 44 ha land area. This is Lego’s first carbon-neutral factory to create 4,000 job opportunities over the next 15 years.
Lego says skilled local workers will be trained by the group to operate the high-tech manufacturing equipment used in every Lego factory worldwide, ensuring each product is made with precision almost absolute.
The groundbreaking phase is scheduled to begin in the second half of 2022, with the factory set to open in 2024. When finished, it will be Lego’s sixth plant in the globe and the second in Asia, fostering long-term growth in the region and providing delightful experiences for children for years to come.
Placing production in Vietnam will help expand the global supply chain network as factories are located in areas close to key markets. That helps the group respond flexibly and quickly to changes in consumer demand in each region, shorten the supply chain and reduce the impact on the environment when transporting long distances.
Cooperate to promote the economic use of energy
Speaking at the online signing ceremony, Mr. Carsten Rasmussen, Chief Operating Officer of LEGO Group, said that the Vietnamese Government’s plans to invest in expanding renewable energy production infrastructure and promote cooperation Cooperation with high-quality foreign investment companies are the driving force for LEGO to decide to build a factory here.
“We are looking forward to working with VSIP to build this state-of-the-art factory, which will contribute thousands of new job opportunities and indirectly support local businesses and communities.” Mr. Carsten Rasmussen said.
According to the plan, LEGO’s new factory will have solar panels installed on the roof and VSIP will build a solar project on LEGO’s behalf. From there, this solar network will produce enough renewable energy to meet 100% of the plant’s annual requirements.
The plant will be built to meet LEED Gold minimum standards, covering all areas of sustainability from energy, water to waste. In addition, the plant will also be designed to operate electric vehicles and equipped with production equipment to improve energy efficiency.
In addition, the LEGO Group and VSIP will plant 50,000 trees in Vietnam to compensate for the greenery lost during the factory’s construction.