Lego to invest over $1B to build factory in the US

Lego is building a new factory in the United States with an investment of more than $1 billion. The company announced its plan this week, and the site covers 1.7 million square feet of floor area.

With the new factory, Lego is expected to create around 1,800 new jobs once it is completed by the year 2025. It was reported that this would be the Danish toy production company’s seventh global plant and the second building in North America. The other facilities are located in Monterrey, Mexico.

According to CNN Business, Lego had a factory in Connecticut, but it was shut down in 2006 as the company said that children preferred to play with electronics. However, the COVID-19 pandemic has drastically changed the lifestyles of the people.

With more households looking for entertainment as they spend more time at home these days, Lego is one of the businesses in the toy-making industry that is experiencing a pandemic-induced boom today.

The company’s sales increased by 27% last year as new store openings in China yielded good results. People are flocking to re-opened shops once again; thus, the sales had gone up after depressing results at the time when the pandemic locked people up at homes due to lockdowns. The sales reportedly reached more than $8 billion in 2021.

In any case, Lego chose to build its new facility in the U.S. in the state of Virginia, and construction is set to start in the fall of this year. The actual production of Lego toys and blocks is expected to begin in the second half of 2025.

“This is an exciting step for the LEGO Group. More and more families are falling in love with LEGO building and we are looking forward to making LEGO bricks in the U.S., one of our largest markets,” Lego Group chief executive officer, Niels B. Christiansen, said in a press release. “The location in Virginia allows us to build a solar park which supports our sustainability ambitions and provides easy links to country-wide transportation networks. We are also looking forward to creating fantastic employment opportunities for the people of Virginia.”