Lego to expand Hungary unit - paper
The world's biggest toy manufacturer is to create a further 1,000 jobs in Nyiregyhaza(E Hungary) through a greenfield investment of around €80 million, business daily Vilaggazdasag said. Lego is planning to establish its own site with a new production base and automatised and conventional storage facilities.
The company is to receive a type of state investment subsidy the government determines on a case-by-case basis. The amount will no be disclosed until the final agreement is signed.
Lego, which has had production activity in Hungary since the mid-2000s, has been considering the greenfield project since 2008. Lego Manufacturing Kft, which employs 1,200-1,300 workers, is only leasing its current production site, and the contract is to expire in 2015.
The paper said the Danish company is purchasing a property that will allow further expansion if necessary. The construction work is to start next summer. By September 2015, operations are scheduled to be moved into the new factory, where production capacity is to be increased by 30%, the paper said.
Lego Manufacturing Kft had net profit of HUF 219 million on sales revenue of HUF 10.8 billion in 2010 as net profit fell by a third while revenue rose 26% from 2009, figures cited by the daily show.
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