Lego To Begin Construction Of First Carbon Neutral Factory Located In Vietnam. Move Will Bolster, Fortify Supply Chains

Billund, Denmark – The LEGO Group has announced the signing of a Memorandum of Understanding with Vietnam Singapore Industrial Park Joint Venture Company Limited (VSIP) for the purpose of establishing a new factory in Vietnam.

The facility will be the company’s first carbon-neutral manufacturing facility and will include solar energy generation.

The LEGO Group will invest more than $1 billion in the 44-hectare site in Binh Duong Province, approximately 50 kilometers from Ho Chi Minh City, over the next 15 years, creating up to 4,000 jobs.

Construction is scheduled to begin in the second half of 2022, with production beginning in 2024.

• Site set to be the LEGO Group’s first carbon neutral run factory.
• Investment of more than US $1billion to create up to 4,000 jobs.
• 6th LEGO® factory to expand Group’s global manufacturing footprint and support long-term growth in Asia-Pacific region.
• New factory set to start production in 2024.

The new manufacturing facility will be the LEGO Group’s sixth and second in Asia.

It is being constructed to accommodate future long-term growth in the region, ensuring that the company can continue to provide play experiences to a large number of children in the years to come. Since 2019, the LEGO Group has grown by double digits on an annual basis in the region.

The new location complements the LEGO Group’s global supply chain network, which places factories in close proximity to the company’s major markets. This enables rapid response to changes in local consumer demand, shortens the supply chain, and mitigates the environmental impact of long-distance shipping.

Carsten Rasmussen, Chief Operations Officer, stated, “We are very grateful for the support of the Vietnamese government in helping us achieve our ambition to build our first carbon neutral factory. Their plans to invest in expanding renewable energy production infrastructure and a collaborative approach to working with foreign companies who are seeking to make high quality investments, were among the factors in our decision to build here.

“This investment will help us to bring the power of LEGO play to future generations of children. We want to inspire and develop the builders of tomorrow, and it is critical that we do so by acting in the most sustainable way possible.

“We are also looking forward to partnering with VSIP to build this state-of-the-art factory which will directly provide thousands of jobs to the region and indirectly support local businesses and communities.”

Mr Nguyen Phu Thinh, General Director of VSIP, stated, “We are excited to collaborate with the LEGO Group on this important investment and honoured they selected Vietnam Singapore Industrial Park III in Binh Duong Province. We are committed to offering international companies high quality investments and sustainable solutions to create attractive long-term development opportunities.”

Constructing a carbon-neutral facility

Solar panels will be installed on the roof of the new factory, and VSIP will construct a nearby solar project on behalf of the LEGO Group. When combined, these solar parks will generate enough renewable energy to meet the factory’s annual energy requirements 100 percent.

It will be constructed to a minimum LEED Gold standard, which addresses all aspects of sustainability, including energy, water, and waste.

The factory will be equipped with energy-efficient production equipment and will be designed to accommodate electric vehicles.

Together with VSIP, the LEGO Group will plant 50,000 trees in Vietnam to replace vegetation lost during construction.

The new factory will adhere to the LEGO Group’s exceptionally high standards for quality and safety. Locally trained employees will operate the same high-tech production equipment used in all LEGO factories worldwide. This ensures that each brick is manufactured to a tolerance of 1/10th of a hair’s width, ensuring that it fits perfectly with bricks and products manufactured in the preceding 60 years.

Carsten Rasmussen stated:

“Every LEGO factory no matter where it’s located is designed to make the safest, best quality products, and provide a world class work environment for our colleagues, so we live up to our promise that only the best is good enough. When you buy a LEGO set, you know you are getting a play experience that will last for generations.”

Diplomatic relations for 50 years

Vietnam and Denmark will celebrate 50 years of diplomatic relations in 2021, and the LEGO Group is delighted to be able to announce such a significant investment during this anniversary year.

Mr. Kim Hjlund Christensen, Denmark’s Ambassador to Vietnam and Laos, stated:

“2021 is a milestone year for Danish and Vietnamese relations. During the past 50 years both countries benefited economically and culturally from developing close ties – from development cooperation to trade and investment. This is the largest investment in Vietnam made by a Danish company. It shows the confidence and optimism we have in the future of this important partnership.”