Lego's Asia focus with 1st China plant
Last Updated: 2013-03-20 00:00 | Shanghai Daily
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Lego is building its first factory in China as part of a plan to move production closer to Asia, its fastest growing market.

The Danish maker of colorful plastic building blocks for children said it's investing at least 100 million euros (US$130 million) in the new plant. Building will start in 2014 and it will be fully operational by 2017.

The factory will be in Jiaxing, 100 kilometers southwest of Shanghai, where Lego is planning an Asian distribution center.

Lego said the new plant will be "a supply base for future growth in Asia." It said in recent years sales in the region have grown by over 50 percent annually.

Chief Operating Officer Bali Padda said Lego's strategy is to reduce the time needed for shipping by basing production near its main markets.

Lego predicted the factory, which will have moulding, decoration and packaging facilities, will be able to supply 70 to 80 percent of the toys it sells in Asia in 2017.

The plant will employ 2,000 workers by the time it's fully running. Lego also has plants in Denmark, Hungary, the Czech Republic and Mexico.

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