Skip to comments.Lego to Outsource Production To Mexico, Czech Republic
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
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Lego people most affected
Eh, go, my Lego?
We shouldn't rely on foreign nations for such supplies. Toy independence is of stratego importance.
Lego ergo Gono.......
Fine by me. Keep those guys working on their own side of the border. Less entitlement costs to our side.
No blood for Tinkertoys!........
Well, Czech beer is by far the best. This is a strategeric move on the part of Lego.
And only 15cents a half liter...
Thanks for posting this, Karl. For some reason I thought Legos were still being made in Denmark.
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.
Just out of curiousity, what is a Lego factory made of?
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.
Hmmm... now that's an interesting thought! ;-)