Lego building base in China

Published on 20/03/2013 00:00

Lego is building its first factory in China as part of a plan to move production closer to Asia, its fastest growing market.

The Danish toymaker said it is investing at least £85.6 million in the new plant. Construction will start in 2014 and it will be fully operational by 2017.

The factory will be located in Jiaxing, about 70 miles south-west of Shanghai, where Lego is planning an Asian distribution centre. Lego said the new factory will be “a supply base for future growth in Asia”.

The company said that in recent years sales in the region have grown by more than 50 per cent annually.

Lego predicted that the factory, which will have moulding, decoration and packaging facilities, will be able to supply 70-80 per cent of the toys it sells in Asia in 2017. The plant will eventually employ 2,000 workers.