Today, The LEGO Group announced that will be building a LEGO factory in China starting in 2014. The factory will be located in Jiaxing which has a population of 5 million people. The reason why LEGO decided to open one there is because of a few reasons. First, the location is near their existing regional distribution center and the city already has the facilities and infrastructure needed to build the new factory. Another reason why Jiaxing was chosen to have a factory there is because LEGO believes the location is perfect for the LEGO employees working there and has the best match with LEGO’s core values.

The factory is planned to be fully operational by 2017 and will have about 2000 employees and the size of it will be around 120,000 square meters. The investment amount into the factory will be “a 3 digit million Euro figure.” All the products made in the factory will be supplying products for Asian market and about 70-80% of all LEGO products in the region.

The LEGO Group has been moving to be more environmental conscience recently and this move adds to that by reducing the need to transport products all the way from Europe to sell in Asia. Although there will be a new facility in China, Michael McNulty, Senior Vice President, Procurement, states that “the same technology, automation and standards for employee safety and product quality as our LEGO factories in Denmark, Hungary, Czech Republic and Mexico, and it will have a distinct LEGO look and feel.”

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