Toy manufacturer LEGO announces USD $800 million expansion in Mexico

LEGO's plant in Nuevo León. (Photo: Mexico News Daily)

MONTERREY, Nuevo León — The Danish toy manufacturer Lego has announced a major expansion of its plant in Monterrey, Nuevo León.

The Lego Group will invest up to USD $800 million to bump capacity at the seven-year-old factory, generating as many as 3,000 new jobs.

Construction is to begin before the end of the year, with the new manufacturing capacity coming online in 2018. Exact details of the expansion and the investment will depend on future demand for LEGO products, said a company executive.

LEGO's plant in Nuevo León. (Photo: Mexico News Daily)
LEGO’s plant in Nuevo León. (Photo: Mexico News Daily)

Investments in new manufacturing capacity were also announced for Denmark and Hungary.

The company said it has recorded double-digit growth every year during the past decade.

The enlarged Mexico factory, in the municipality of Cienega de Flores near Monterrey, will be engaged in moulding LEGO System bricks, and processing and packaging. It has 3,500 employees today, a number that could rise to 6,500, depending on sales.

The existing plant measures 150,000 square meters, which could be increased to as much as 340,000, again depending on sales, the company said.

It was just over a year ago the company completed its most recent expansion in Nuevo León, adding 48,000 square meters to the factory and creating 1,000 jobs.