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Lego to Outsource Production To Mexico, Czech Republic
WSJ ^ | 6/20/06 | Al-AP

Posted on 06/20/2006 10:15:12 AM PDT by BurbankKarl

Danish toy maker Lego Group said Tuesday it will end its production in Enfield, Conn., and lay off 300 people there in early 2007, while some 900 employees in Denmark will also be let go over the next three years.

The production in Enfield is to be moved to Mexico, the group said in a statement. Along with the 300 production layoffs, the distribution facility in Enfield will also be affected, Lego said, without providing details.

At Lego's headquarters in Denmark, up to 900 production employees will lose their jobs over the next three years as nearly a third of the domestic production will be moved to the Czech Republic, the company said.

Some Lego products, including Lego Technic and Bionicle, will still be made at Lego's headquarters in Billund, 160 miles west of Copenhagen, which presently has a staff of 3,000 employees. Outside Denmark, Lego bricks will be made by Flextronics Ltd., a Singapore-based electronics manufacturer, which operates factories in Mexico and Eastern Europe. Flextronics also is taking over Lego's factory in Kladno, in the Czech Republic, beginning Aug. 1.

In 2005, the closely held Lego posted a net profit of about $86 million, compared with a net loss of nearly four times that in 2004.

In September, Lego said it was considering moving all or parts of its production to Eastern Europe or China, and said the restructuring plans could affect all of its production facilities. A month later, Lego announced that it was closing a production facility in Switzerland and five European distribution centers, and moved those operations to the Czech Republic. That move affected 540 workers

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Mexico; News/Current Events; US: Connecticut
KEYWORDS: denmark; globaleconomy; globalism; lego; outsourcing; socialism; taxburdern; toys; trade

1 posted on 06/20/2006 10:15:15 AM PDT by BurbankKarl
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To: BurbankKarl

Lego people most affected

2 posted on 06/20/2006 10:16:10 AM PDT by BurbankKarl
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To: BurbankKarl

Eh, go, my Lego?


3 posted on 06/20/2006 10:16:26 AM PDT by Larry Lucido
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To: BurbankKarl

We shouldn't rely on foreign nations for such supplies. Toy independence is of stratego importance.


4 posted on 06/20/2006 10:18:14 AM PDT by dead (I've got my eye out for Mullah Omar.)
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To: Larry Lucido

Lego ergo Gono.......


5 posted on 06/20/2006 10:19:09 AM PDT by Red Badger (Thread hi-jacking in progress. Everybody stay in your seats and no one will get hurt!...............)
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To: BurbankKarl

Fine by me. Keep those guys working on their own side of the border. Less entitlement costs to our side.


6 posted on 06/20/2006 10:19:50 AM PDT by Integrityrocks
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To: dead
Toy independence is of stratego importance.

No blood for Tinkertoys!........

7 posted on 06/20/2006 10:20:20 AM PDT by Red Badger (Thread hi-jacking in progress. Everybody stay in your seats and no one will get hurt!...............)
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To: dead
We shouldn't rely on foreign nations for such supplies. Toy independence is of stratego importance.

Excellent post. We need to ask ourselves if we are addicted to foreign toys.
8 posted on 06/20/2006 10:20:23 AM PDT by Kokojmudd (Outsource GM to a Red State! Put Walmart in charge of all Federal agencies!)
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To: Kokojmudd
I wonder how many Legos it would take to build a border wall...


9 posted on 06/20/2006 10:22:42 AM PDT by weegee (happy holidays and seasons greetings...)
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To: dead

Well, Czech beer is by far the best. This is a strategeric move on the part of Lego.


10 posted on 06/20/2006 10:23:14 AM PDT by GSlob
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To: GSlob
Well, Czech beer is by far the best.

And only 15cents a half liter...

11 posted on 06/20/2006 10:24:09 AM PDT by weegee (happy holidays and seasons greetings...)
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To: BurbankKarl
They want cheap slave labor.


12 posted on 06/20/2006 10:27:51 AM PDT by dead (I've got my eye out for Mullah Omar.)
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To: BurbankKarl
Thanks for posting this, Karl. For some reason I thought Legos were still being made in Denmark.

13 posted on 06/20/2006 10:30:12 AM PDT by bd476
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To: Kokojmudd

Well, I don't know about you lot, but I am bullish on the American economy. And one thing about us Bulls, is that we bulls may wobble, but we don't fall down.


14 posted on 06/20/2006 10:33:05 AM PDT by akorahil (Thank You and God bless all Veterans. Truly, the real heroes.)
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To: Red Badger

Just out of curiousity, what is a Lego factory made of?


15 posted on 06/20/2006 10:38:30 AM PDT by Larry Lucido
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To: Red Badger
Never mind.


16 posted on 06/20/2006 10:40:07 AM PDT by Larry Lucido
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To: DaveLoneRanger; Brad's Gramma
Legos Ping.

17 posted on 06/20/2006 10:40:55 AM PDT by bd476
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To: bd476

If you ever get to Minnesota, be sure to go to the Mall of America in Bloomington and go see the LEGOLAND there. The constructions are amazing. They have tables full of Legos of all sizes for kids to play with while mom and dad "ooooh!" and "aaaahh!" over the incredible constructions that whir, whirl, spin, climb, fly, and bow.


18 posted on 06/20/2006 10:45:45 AM PDT by redhead (Alaska: Step out of the bus and into the food chain...)
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To: BurbankKarl

"They took our jooobs"


19 posted on 06/20/2006 10:48:42 AM PDT by TC Rider (The United States Constitution 1791. All Rights Reserved.)
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To: weegee
I wonder how many Legos it would take to build a border wall...

Hmmm... now that's an interesting thought! ;-)

20 posted on 06/21/2006 9:23:14 PM PDT by nutmeg ("We're going to take things away from you on behalf of the common good." - Hillary Clinton 6/28/04)
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To: RaceBannon; scoopscandal; 2Trievers; LoneGOPinCT; Rodney King; sorrisi; MrSparkys; monafelice; ...

Connecticut ping!

Please Freepmail me if you want on or off my infrequent Connecticut ping list.

21 posted on 06/21/2006 9:23:44 PM PDT by nutmeg ("We're going to take things away from you on behalf of the common good." - Hillary Clinton 6/28/04)
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To: BurbankKarl
They moved production (actually making parts) out of Enfield, CT years ago. Now they are just getting rid of distribution & packaging.

Lego press release on the current layoffs & closings.

Layoffs in 2003 1 2

22 posted on 06/22/2006 5:00:27 AM PDT by Fixit (ManBearPig is going to kill us all!)
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To: BurbankKarl; nutmeg

I used to work for these people. I was WAY too politically incorrect for them.


23 posted on 06/22/2006 1:45:34 PM PDT by RaceBannon (Stuck in Lima Peru for the time being)
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To: RaceBannon
I used to work for these people. I was WAY too politically incorrect for them.

Did you work at LEGO in Enfield? Were they a bunch of libs?

I have two cousins who work there. I suspect the one who works in the "production" area has lost her job...

24 posted on 06/22/2006 7:57:49 PM PDT by nutmeg ("We're going to take things away from you on behalf of the common good." - Hillary Clinton 6/28/04)
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