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Lego Group confirms it will build EUR 100m plant in Hungary

Denmark's Lego Group confirmed a report on Friday that it would build a €100 million plant in Nyíregyhaza (NE Hungary) to replace its existing plant in the city.

Construction of the plant, which will turn out LEGO R and DUPLO products, will start in 2012, Lego Group said. The 80,000 square meters, energy efficient plant will replace its existing one which no longer meets the company's requirements.

A 13,000 square meters part of the plant will be completed already in 2012. The rest of the plant will be completed by 2015. Moulding, decorating and packaging will all take place at the new plant.

From 2015, the plant will operate with 450 moulding machines.

Headcount at Lego Group's operations in Nyíregyhaza is expected to rise by 250 from 1,300 at present when the plant is completed.

Lego is currently renting its plant in Nyíregyhaza from contract electronics manufacturer Flextronics, which will take it back at the end of 2014.