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The world's largest toy company invests in Vietnam and China to build factories, but announces

2022-08-01

The beloved Danish toy brand LEGO has ceased commercial activities in Russia, according to Russian news reports.


According to LEGO Russia CEO Evgeny Chikhachev: "Given that the operating environment is being severely disrupted, we have decided to suspend commercial activities in Russia indefinitely."


"This includes terminating most of our Moscow team and our partnership with Inventive Retail Group."


The department in Moscow has reportedly laid off 70 employees. Russia has 81 LEGO stores and is part of the Innovative Retail Group, which also handles stores for other well-known brands such as Apple, Nike and Samsung.


Twitter "Twitter" has started responding to the news, with one user posting:


"LEGO just announced its permanent and complete withdrawal from Russia, closing 81 stores there. I wonder what the Russian copycat will be called: REGO? LENGO? NOGO?"


However, the decision in Asia is different. Lego announced that by the end of 2021, it will invest 1 billion US dollars to build the sixth factory in the world and the second factory in Asia. According to plans, the carbon-neutral plant, which will create 4,000 jobs over the next 15 years, is scheduled to start construction in the second half of 2022 and is also expected to be operational in 2024.


Secondly, the LEGO Group also announced that it will expand its factory business in Jiaxing, China, and increase production capacity to further promote the long-term development of business in China and Asia.


It is understood that the expansion project includes the addition of a high-bay automated three-dimensional warehouse, injection molding facilities and workshops for processing Lego bricks. A total of 42,000 square meters will be added on the existing basis, and the potential production capacity will be significantly increased. .


The LEGO Group Jiaxing factory opened in 2016 and has about 1,200 employees covering all aspects of producing and packaging LEGO products, including injection molding, processing, decoration and product packaging of LEGO bricks.


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