The Lego Group has announced plans to build a new $1 billion factory in Virginia to help meet the increasing demand of consumers in the United States. The factory will be a 100% carbon-neutral facility, with all its energy being generated by an onsite solar park. Meaning that all its energy needs will be met from renewable energy sources. Furthermore, the factory will be designed to be highly energy effect and aims to secure the gold LEED certification. This will also be the Lego Group’s first factory in the United States and seventh production facility in the world.
The Virginia factory will use state-of-the-art technology to produce and package Lego products according to the company’s strict quality and precision requirements. The facility will be based in Chesterfield County, Virginia and cover an area of 1.7 million square feet across 340 acres of land.
The new Lego factory will also create more than 1,760 employment opportunities over 10 years for the people of Virginia. Lego Group CEO Niels Christiansen stated that they “were impressed with all that Virginia has to offer, from access to a skilled workforce, support for high-quality manufacturers, and great transport links”. In addition, Lego be eligible for a performance-based grant of $56 million and site support improvements worth up to $19 million subject to legislative approval.
In the last few years, most companies have faced global supply chain issues due to the pandemic and sudden increase in demand. Lego believes that building a factory in the U.S. will allow them to overcome supply chain issues and provide easy transportation links to one of their biggest markets. Currently, the U.S. market is being supplied by their Mexico factory, which is also being expanded. With the construction of the new facility, Lego expects to vastly increase their production capacity in the U.S.to match the increase in demand. The construction of the new facility in Virginia and expansion of the Mexico facility is expected to make Lego “able to best support long-term growth in the Americas”.
The new Lego facility will begin construction in fall 2022 and is expected to begin production in the second half of 2025 upon the completion of the solar park. Until construction of the factory is complete, packaging will commence in a temporary nearby building in early 2024 which will create up to 500 jobs.