In October 2015, the LEGO Group announced that the LEGO factory in Nyíregyháza, Hungary, was planned to undergo expansions and that further expansions were being considered in order to meet the expected demand from customers and consumers.
The first expansion included installment of moulding machines during 2016 in a nearby rented facility and expanding the LEGO factory with additional automated warehousing and LEGO® DUPLO® processing facilities.
Today the LEGO Group announces that it will expand the factory with additional moulding, packaging and further warehousing and processing areas as well as administrative and facility buildings. The decision to invest in further manufacturing capacity has been made based on the LEGO Group’s expectations for the long term growth in LEGO® sales globally.
“It is our ambition that children all over the world experience creative LEGO play, and as we continue to grow our business, we need to ensure that we are able to deliver the LEGO sets demanded by consumers all over the world. Therefore, we have been investing and we continue to invest significantly in our manufacturing capacity. Our LEGO factory in Nyíregyháza, Hungary plays an important role in our long term ambition of reaching more children,” says Bali Padda, Executive Vice President and Chief Operations Officer, the LEGO Group.
Expansion to be ready by 2018
Once the expansion is completed, the current factory will have doubled in size. The expansion represents an investment of a EUR 3 digit million amount towards 2020. Depending on the development in LEGO sales in the coming years, potentially as many as 1,600 new jobs could be created in Nyíregyháza towards 2020, bringing the number of employees up to approximately 4,000.
“Our current factory in Nyíregyháza was inaugurated in the spring of 2014, and being able to expand it further already now and welcoming so many new employees in the coming years is truly exciting. Nyíregyháza is a great location for the LEGO Group. We are close to our consumers and customers across Europe, we are able to attract the skilled labour we need to make high quality LEGO products, and we have a positive ongoing collaboration with the government and relevant local and regional authorities,” says Jesper Hassellund Mikkelsen, Senior Vice President and responsible for the LEGO factories in Denmark and Hungary.
The construction of the new expansion is expected to begin within the coming months, with the new facilities being ready for production by 2018. The new moulding facility will have room for further 768 moulding machines, while the packing facility will increase the output by a factor of approximately 1.5.
What is being built towards 2020:
• A new moulding facility with space for further 768 moulding machines
• A new mould assembly function
• A new high bay warehouse for more than 500,000 storage boxes
• A new high bay warehouse with room for approximately 40,000 pallets
• New packing halls and a manual warehouse
• A new waste handling area
• A new administration building
• A new processing building for decoration and assembly of LEGO System elements
• A new processing building for decoration and assembly of LEGO DUPLO elements
• A new building to manage the consumption of power needed
The LEGO factory in Hungary:
Activities: Moulding of LEGO DUPLO and LEGO System bricks, DUPLO processing and packing of DUPLO & LEGO System bricks
Employees today: Approximately 2,400
Employees in 2020: Up to approximately 4,000 - depending on development in sales and season
Size today: Approximately 120,000 m2
Size in 2020: Up to approximately 290,000 m2 depending on development in sales