Lego may move production from Denmark
Posted on Wed, Sep. 07, 2005
COPENHAGEN, Denmark – Struggling Danish toy maker Lego Group, famous for its colorful plastic building blocks, said Wednesday it is considering moving all or parts of its production to Eastern Europe or China.
The privately held group reported a pretax loss of 156 million kroner ($26 million) last week and announced it would move a production factory in Switzerland to the Czech Republic.
In an interview with the financial newspaper Boersen, Lego chief executive Joergen Vig Knudstorp said the Swiss move was a test, and could be followed by a complete or partial move of the company’s main production facilities in Billund, Denmark.
“In the long term, I think that everything will be moved,” Vig Knudstorp was quoted as saying.
Lego spokeswoman Charlotte Simonsen told The Associated Press no decision had been made, but confirmed that outsourcing production to eastern Europe or China was being considered. She said the restructuring plans would be completed by 2010, and any moves would take place before that.
There are about 3,000 people working at the production facility at the Lego headquarters in Billund.
Simonsen said the company’s restructuring program could affect all of its production facilities, including one in Enfield, Conn.
Earlier this year Lego sold its four Legoland amusement parks to U.S.-based private equity group the Blackstone Group for 375 million euros ($457 million). The theme parks are located in Carlsbad, Calif.; Billund; Windsor, Britain; and Gunzberg, Germany.
Thanks to another DLR for sending in the news.
This post originally appeared on Rebelscum.com on thttp://www.sanluisobispo.com/mld/sanluisobispo/business/12580932.htmhe 8th of September, 2005.
Fervent documentarian, effusive AFOL and founding partner, Jeremy manages the daily news content and set reviews.
Having enjoyed playing with LEGO from his earliest years, Jeremy started collecting LEGO Star Wars in 1999 when the theme was first released. He has shared his thoughts and opinions on LEGO via a number of websites – including starwars.com, rebelscum.com and brickset.com – contributed to the LEGO Star Wars: The Visual Dictionary series and served the LEGO Ambassador Network as a Recognised LEGO Fan Media representative.