Lego opens $1 billion manufacturing facility in Vietnam to spice up Asia enlargement
Lego opened a $1 billion manufacturing facility in Vietnam, marking a serious step within the Danish toymaker’s bid to strengthen its presence throughout Asia. The brand new plant is positioned within the southern province of Binh Duong, is the corporate’s second facility in Asia and its sixth globally.
The manufacturing facility is designed to cater completely to the rising demand in Asian markets, with merchandise destined for purchasers in international locations similar to Australia, Japan, South Korea, India, and Vietnam itself. It won’t export to the US, the place a steep 46 per cent tariff on Vietnamese items has discouraged many worldwide corporations from delivery there.
The corporate plans to make use of greater than 4,000 individuals on the website.
Lego’s CEO, Niels Christiansen, mentioned the transfer was pushed by each strategic and sensible components.
He mentioned that it was essential “to have proximity to a few of the international locations the place we’ve a number of income and a number of Lego followers.”
“It was additionally essential that we will have very excessive expert labour and the extent in Vietnam is robust,” he advised information company AFP.
Eco pleasant operations: ‘Planet that the youngsters inherit’
The corporate is aiming to have the manufacturing facility totally powered by renewable vitality by 2026, as part of the toymaker’s quest to cease including greenhouse gases by 2050. It has a shorter-term goal of lowering emissions by 37% by 2032, information company AP reported.
“We simply wish to guarantee that the planet that the youngsters inherit once they develop up must be a planet that’s nonetheless there. That’s practical,” Christiansen mentioned.
The privately owned firm, which at the moment manufactures its bricks utilizing oil-based plastic, says it has poured greater than $1.2 billion into growing extra sustainable alternate options.
Nevertheless, the journey towards greener supplies has confronted many failures.
Greater than 12,000 rooftop photo voltaic panels have already been put in as a part of that purpose.
Christiansen added that whereas latest development in China has slowed, Asia-Pacific continues to be a “actually large alternative”.
Lego’s different factories are positioned in Europe, Mexico and China, as the corporate continues to broaden its international manufacturing community consistent with rising demand.
