LEGO Group expands its factory in Monterrey, Mexico
Monterrey, Mexico – The LEGO Group announced it is expanding its factory in Monterrey, Mexico, creating additional packing and warehousing capacity that sets the company up for long-term growth in the Americas.
Carsten Rasmussen, Chief Operating Officer at the LEGO Group said: “Our factory in Monterrey is the largest LEGO manufacturing facility in the world and plays a vital role in our global network. Our continued investment is part of the company’s strategy to locate production facilities close to our major markets, allowing us to respond to shifts in local demand, shorten the supply chain, and reduce our environmental impact.”
The expansion will include a new packing building, a warehouse extension, and other miscellaneous facilities, adding a total of 59,000 m2 of operational space to the current site. The Monterrey factory currently employs more than 5,000 people, with an additional 900 expected to be added over the course of the expansion.
Work on the expansion has commenced and is expected to be completed in 2025.
Nancy Sanchez, General Manager of LEGO factory Monterrey and Senior Vice President at the LEGO Group said: “We are thrilled to announce this latest expansion. Fifteen years after opening, we continue to invest in our facilities in Monterrey – and in turn, are able to bring in even more incredibly skilled colleagues thanks to a strong labour market and talent pool. We’re thankful for the continued support of Monterrey and Nuevo Leon.”
Render of the new expansion The factory expansions are designed to support the LEGO Group’s sustainability ambitions, including the company’s commitment to reduce carbon emissions by 37 percent by 2032*. In addition to the solar panels already installed on existing buildings, the company installed a water treatment plant this year to reduce the factory’s water consumption, thereby supporting the region’s severe drought. The plant is expected to reuse a total of 6,500 m3 of water each month by February 2024.
The LEGO Group previously opened a 33,850 m² expansion at its factory in August 2022, which included a new fully automated high-bay warehouse, moulding hall and processing facility.
The Monterrey factory is one of three of the LEGO Group’s factories which performs all aspects of the manufacturing and packaging of LEGO products, including moulding LEGO elements, element processing and decoration and packing LEGO boxes.
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Mexican Insights
Lego's Mexican manufacturing hub
Financial resurgence, the pivotal role of its mexican workforce, its impressive production capabilities, and the challenges they face in an increasingly digitized world..
From the brink of bankruptcy in 2003, this iconic Danish company has not only risen from the ashes but also established its largest global production hub in Ciénega de Flores, Mexico.
Lego's operations and investments
The Lego factory in Ciénega de Flores, Mexico, is the largest in the world.
Lego has invested over $2 billion in Mexico since 2008.
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Lego's financial situation
In 2003, Lego was on the brink of bankruptcy with a debt of over $800 million .
Jørgen Vig Knudstorp took over as CEO in 2004 and restructured the company.
Lego's Mexican workforce
Lego in Mexico employs 5,000 people .
Production and output
The Ciénega de Flores plant produced 141 million "sets" in 2022.
Automation is crucial in Lego's production.
Challenges faced by Lego
Lego faces the challenge of digitization and decreasing interest in physical toys.
The lack of labor in Nuevo León is a problem for Lego.
Automation may reduce jobs in the future.
Collaboration and business strategy
Collaboration with movies has been beneficial for Lego.
Nancy Sánchez, Senior Vice President of Americas Manufacturing at Lego, will manage the upcoming plant in Virginia.
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