LEGO Group to build factory in Binh Duong
LEGO signs MoU with VSIP to build new factory in Vietnam.
The LEGO Group signed an MoU on December 8 with the Vietnam Singapore Industrial Park Joint Venture Company Limited (VSIP) to build a new factory in Vietnam, witnessed by Permanent Deputy Prime Minister Pham Binh Minh and Danish Ambassador to Vietnam, H.E. Kim Højlund Christensen.
The factory will be the company’s first carbon-neutral facility and will include investments in solar energy generation. The Group will invest more than $1 billion in the 44-ha site in southern Binh Duong province, near Ho Chi Minh City, and provide 4,000 job opportunities over the next 15 years.
It is expected to be deployed at the end of 2022 and begin operations in 2024, and will be the LEGO Group’s sixth manufacturing site and second in Asia. The factory is being built to support additional long-term growth in the region so the company can continue to deliver playing experiences to many more children in the years to come. “We are very grateful for the support of the Vietnamese Government in helping us achieve our ambition to build our first carbon-neutral factory,” said Mr. Carsten Rasmussen, Chief Operations Officer of the LEGO Group. The government’s plans to invest in expanding renewable energy production infrastructure and promote cooperation with high-quality foreign investment companies were motivation for LEGO to decide to build a factory in Vietnam, he added.
Mr. Nguyen Phu Thinh, General Director of VSIP, said it is delighted to partner with the LEGO Group on this important investment project and is honored that LEGO has selected VSIP III in Binh Duong province. VSIP is also committed to offering international companies high-quality investments and sustainable solutions to create attractive long-term development opportunities.
The new factory expands the LEGO Group’s global supply chain network, with factories located close to major markets. This provides it with flexibility to respond quickly to shifts in local consumer demand, shortens the supply chain, and reduces the environmental impact of shipping long distances. According to Mr. Rasmussen, the LEGO Group is looking forward to partnering with VSIP to build the state-of-the-art factory, which will directly provide thousands of jobs to the region and indirectly support local businesses and communities in Vietnam.
It will feature solar panels on its roof, while VSIP will also build a solar project nearby on behalf of the LEGO Group. Combined, these will produce enough renewable energy to meet 100 per cent of the factory’s annual energy requirements. The LEGO Group, along with VSIP, will also plant 50,000 trees in Vietnam to compensate for vegetation removed during construction. This investment will help it bring the power of playing with LEGO to future generations of children.
