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Dansk version
July 1 2008
LEGO Group changing production set up
Today the LEGO Group announces a change in its production set up. While holding on to the successful strategy of establishing production hubs near the largest markets in central Europe and the USA, the LEGO Group has decided to a larger extent to focus on an internal production solution and will phase out the existing outsourcing agreement with Flextronics during 2009.
The LEGO Group and Flextronics have worked together for almost three years, and through the co-operation both parties have learnt a great deal about handing over resources, skills and outsourcing with fast ramp-up at new sites.
But during the past year it has become increasingly obvious to the two parties that it would be more optimal for the LEGO Group to manage its global manufacturing set up.
The LEGO Group and Flextronics have now come to the joint decision that the LEGO Group will take over LEGO production from Juárez, Mexico and Nyíregyháza, Hungary.
At the Nyíregyháza facility, the LEGO Group is in negotiations with Flextronics to take over the plant and people. These discussions will hopefully be concluded by the end of July.
The Juárez production will during first quarter of 2009 move to a new site in Monterrey, Mexico, and the site is expected to be up and running in second quarter of 2009.
Executive Vice President in charge of the global supply chain, Iqbal Padda:
“We have had an intensive and very valuable cooperation with Flextronics on the relocation of major parts of our production. As expected this transition has been complicated but, throughout the process we have maintained our high quality level. Jointly we have now come to the conclusion that it is more optimal for the LEGO Group to manage the global manufacturing set up ourselves. With this decision the LEGO supply chain will be developed faster through going for the best, leanest and highest quality solution at all times.”
The LEGO Group further has own production sites in Billund, Denmark, and Kladno, Czech Republic, and cooperates with other manufacturing suppliers in Poland, Hungary and China. After the change in the production set-up the LEGO Group will have a total of about 6,500 employees.
For further information, please contact:
Charlotte Simonsen
Head of Corporate Communications
Tel: +45 79 50 65 79
Mobile: +45 20 30 81 35
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The LEGO Group is a privately held, family-owned company, based in Billund, Denmark. It was founded in 1932 and today the group is one of the world's leading manufacturers of play materials for children, employing approximately 7,500 people globally. The LEGO Group is committed to the development of children's creative and imaginative abilities. LEGO products can be purchased in more than 130 countries.
LEGO and the LEGO logo are trademarks of The LEGO Group. ©2010 The LEGO Group.
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