LEGO to build 1st Asian plant in Jiaxing
Print Edition
DANISH toy maker LEGO Group plans to build the first Asian factory in Jiaxing in Zhejiang Province to tap into the future growth in Asia.
The Jiaxing factory, whose investment was not revealed, is set to be fully operational by 2017 and to supply products to all Asian markets. Shanghai, 120 kilometers from the new plant, will become LEGO’s central distribution center for Asia.
The Jiaxing factory is to be developed into our third-biggest plant, Jorgen Vig Knudstorp, president and CEO of the LEGO Group, told Shanghai Daily yesterday.
“Setting up the plant in Shanghai will allow us to react to the market within a week. Previously it took eight weeks to ship the products from Europe to Asia. I think it will make the customers and the distributors happier,” he said.
Michael McNulty, senior vice president of Asia manufacturing for LEGO, said the plant, set to employ 1,500 employees, aims to be a supply base to tap the future growth in Asia.
LEGO’s top three regional markets are South Korea, China and Japan.
“China was the fastest growing market last year, with a yearly increase of 50 percent in revenue,” Knudstorp pointed out.
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