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Lego expands in Czech Republic

By Richard Higgs
Posted 8 October 2012

Thriving global toy maker Lego group has announced fresh expansion plans for its already substantial production plant in Kladno, Czech Republic.

This facility, which manufactures the group’s eponymous building brick products, has already been extended twice since 2010. Now, Lego is due to start work on a new project in December which will add another 14,200m² of processing and assembly space to the factory from 2014.

The two-stage project is scheduled to result in a facility with a total covered area of 100,000m2 at the Czech site. In the first phase, a 3,200m² upper extension will be added to a unit of the processing department where components are decorated and assembled. The additional section will also process Lego parts.

Last year, the company purchased a neighbouring industrial site in Kladno. In early 2013, it plans to demolish an existing building on that site making way for the second phase of its own expansion. There Lego will construct an 11,000m² product packing hall and an underground car park for 250 vehicles, it said in a news release.

The Billund, Denmark-based group expects its latest expansion scheme at Kladno, which it said has been prompted by Lego’s strong growth, will require investment of more than €13.4m. It plans to hire another 300 workers as a result of the new project.

“It confirms our strong belief in the Czech factory and in the skills and culture of its employees. We expect a lot from our colleagues at this site, and the factory is part of our future,” said group CEO Jørgen Vig Knudstorp.

Lego admitted that it had allowed for possible further expansion at the Kladno site, but was surprised that it was needed so soon. Continuing sales growth has meant it must add more space to avoid a squeeze on capacity there, it said.

This summer, Lego group began the construction of a €125m 80,000m² green field factory   complex near Nyíregyháza in Hungary to manufacture its ‘Duplo’ and Lego brand toys. That project is also set for completion in 2014.

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