LEGO Group breaks ground at new factory in Vietnam
New Binh Duong factory the largest investment by any Danish company in Vietnam.
The LEGO Group celebrated breaking ground at its new $1 billion factory in southern Binh Duong province on November 3. Its investment is the largest in Vietnam by any Danish company and part its strategy to expand its supply chain network to support long-term growth and locate production facilities close to major markets.
The breaking ground ceremony was attended by His Royal Highness Crown Prince Frederik of Denmark, Standing Deputy Prime Minister Pham Binh Minh, LEGO Group CEO Mr. Niels B. Christiansen, LEGO Group COO Mr. Carsten Rasmussen, national and provincial officials, and business and community partners.
Mr. Christiansen said today marks a significant milestone for the LEGO Group as it celebrates breaking ground at what will be its sixth factory globally and first carbon-neutral facility. Not only will it allow LEGO to reach even more children with learning through play and create long-term growth in the Asia-Pacific region, it will also enable it to quickly adapt and respond to shifts in consumer demand.
“We are grateful for all the support we have received to realize our manufacturing ambitions, and we look forward to working with authorities and partners to build our factory and have a positive impact on the local economy and community,” Mr. Christiansen said.
The 44-ha site, the size of 62 football pitches, will use state-of-the-art technology to mold, process, and pack LEGO products. Production is set to begin in 2024, with skilled local employees trained to operate high-tech equipment that ensures each brick is produced to an accuracy of 1/10th of a hair’s width. The factory will employ 4,000 people over the next 15 years.
The LEGO Group is committed to providing diverse and inclusive workplaces where everyone feels welcome and the new factory will be no different. It will feature wellness and prayer rooms, braille wayfinding signs, and wheelchair access.
The factory is designed to be the LEGO Group’s first carbon-neutral facility and most sustainable to date. It will feature rooftop solar panels and a solar farm built on a neighboring plot of land, which combined will match the total annual energy requirement of the site.
It will also use the latest energy-efficient production equipment and be built to meet the minimum standards of LEED Gold - a globally-recognized green building certification. Such efforts will contribute to the company’s target of reducing its net carbon emissions by 37 per cent by 2032 compared to 2019.
Guided by a belief that children are the LEGO Group’s role models, aspects of the factory’s design will be inspired by ideas from local kids. Over 40 children from the Hoi Nghia Primary School participated in a “Build the Change” workshop, where they used LEGO bricks to create ideas for the factory’s employee and play spaces. Ideas ranged from gardens filled with local plants to fun playgrounds including a rollercoaster, an aquarium, and a football stadium, which some of the children shared with guests at the breaking ground ceremony.
As construction gets underway, the LEGO Group is partnering with the local government, community organizations, non-governmental organizations (NGOs), and charities to ensure that children in Vietnam benefit from greater learning through play opportunities.
As an integral part of the community, the company commits $150,000 before the end of this year to offer more playful learning opportunities to children in the local area and beyond, with partnerships with Save the Children Vietnam and the Blue Dragon Children’s Foundation.
The LEGO Foundation pledged $4 million in 2019 to the VVOB iPlay program in Vietnam in a four-year partnership designed to introduce learning through play practices to teachers.
