Dive brief:
- The Lego Group plans to invest more than 400 million dollars expand it manufacturing operations in Monterrey, Mexicoadding packaging and storage capabilities, the toymaker said Thursday.
- the project will add more than 667,000 square feet of space, included a new packing room and a fully automated room high warehouse this can store piles from 40 feet to over 150 feet tallaccording to the press release.
- The facility currently employs 7,300 people, and the investment will create an additional 1,300 jobs. Construction is expected to begin in early 2027 and be completed in 2029.
Diving knowledge:
The Monterrey factory is responsible for the manufacture and packaging of Lego products, including the element molding, processing and decoration, as well as packing boxes. The site serves customers from all over America.
The company has a “flexible and resilient, regionally-based global supply chain network designed to manufacture products close to major Lego markets,” Nancy Sanchez, general manager of the Lego Monterrey factory and senior vice president of Americas manufacturing for the Lego Group, said in an email.
“This approach has been a core part of our strategy for more than 15 years and helps us respond to changes in demand while supporting long-term growth,” said Sanchez.
Since it began operations in 2008, Lego has gradually expanded the facility’s manufacturing footprint and the number of employees working there, making it the company’s largest plant.
The latest expansion plans reflect Lego’s “longstanding commitment to Mexico and the important role the site plays in our global manufacturing network,” chief operating officer Carsten Rasmussen said in a statement.
“This latest investment positions us for continued long-term growth and will help us meet the demand for Lego play experiences for years to come,” Rasmussen added.
The spending will also create “additional opportunities for employees for technical training, professional development and long-term careers,” Sanchez said in the news release.
The company is also working closely with technical schools, Mexico’s Ministry of Education and industry partners to develop workforce courses that reflect the skills currently required by the manufacturing sector, Sanchez said in the email.
“Current and future employees will have access to training that will help them operate sophisticated software, strengthen problem-solving and continuous improvement capabilities, develop leadership behaviors and develop experience in a modern manufacturing environment,” added Sanchez.
The Lego Group has also been working on sustainability in its operations around the world, including reduce their greenhouse gas emissions. In 2022, started the company gradual elimination of single-use plastic in their packaging and switching to paper bags to house their toy bricks. The company remains on track to complete the transition by 2027, Sanchez said.
In addition, many of the buildings on the Monterrey lot are equipped with rooftop solar panels, Sanchez said. Other investments the Monterrey site is making to reduce its environmental footprint include water reuse systems, waste reduction programs and “ongoing efforts to achieve zero waste to landfill.”
The Monterrey site is the first North American facility for Denmark-based Lego Group, and the company is currently building its second site in Chesterfield, Virginia. The company is spending itself 1.5 billion dollars in a factory i regional distribution center in the stateboth are on track to open in 2027. Meanwhile, Lego is operating a temporary packaging facility in Chesterfield.
