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New packing facility and warehouse extension will increase site’s capacity to support long-term growth in Americas
MONTERREY, MEXICO, November 14, 2023: The LEGO Group today announced it is expanding its factory in Monterrey, Mexico, creating additional packing and warehousing capacity that sets the company up for long-term growth in the Americas.
Carsten Rasmussen, Chief Operating Officer at the LEGO Group said: “Our factory in Monterrey is the largest LEGO manufacturing facility in the world and plays a vital role in our global network. Our continued investment is part of the company’s strategy to locate production facilities close to our major markets, allowing us to respond to shifts in local demand, shorten the supply chain, and reduce our environmental impact.”
The expansion will include a new packing building, a warehouse extension, and other miscellaneous facilities, adding a total of 59,000 m2 of operational space to the current site. The Monterrey factory currently employs more than 5,000 people, with an additional 900 expected to be added over the course of the expansion.
Work on the expansion has commenced and is expected to be completed in 2025.
Nancy Sanchez, General Manager of LEGO factory Monterrey and Senior Vice President at the LEGO Group said: “We are thrilled to announce this latest expansion. Fifteen years after opening, we continue to invest in our facilities in Monterrey – and in turn, are able to bring in even more incredibly skilled colleagues thanks to a strong labour market and talent pool. We’re thankful for the continued support of Monterrey and Nuevo Leon.”
The factory expansions are designed to support the LEGO Group’s sustainability ambitions, including the company’s commitment to reduce carbon emissions by 37 percent by 2032*. In addition to the solar panels already installed on existing buildings, the company installed a water treatment plant this year to reduce the factory’s water consumption, thereby supporting the region’s severe drought. The plant is expected to reuse a total of 6,500 m3 of water each month by February 2024.
The LEGO Group previously opened a 33,850 m² expansion at its factory in August 2022, which included a new fully automated high-bay warehouse, moulding hall and processing facility.
The Monterrey factory is one of three of the LEGO Group’s factories which performs all aspects of the manufacturing and packaging of LEGO products, including moulding LEGO elements, element processing and decoration and packing LEGO boxes.
FACTS
LEGO Factory, Monterrey, Mexico
Investment: U.S. $205 million
Jobs: Approximately 5,000 employees today, with up to 900 new positions added through 2025. For a full list of jobs, visit www.LEGO.com/careers
Size: Size today is 275,000 m2, to be increased by 59,000 m2 by 2025 for a total of 334,000 m2 sitting on 83 hectares.
Infrastructure: Additional facilities to be constructed include a new packing building, an extension of an existing warehouse, car parks and more.
Blueprint: Same blueprint for all LEGO factories – high-tech production equipment that ensures each brick is made to the accuracy of 1/10th of a hair’s width. This precision means that LEGO bricks made today fit perfectly with bricks and products made over the past 60 years.
Production activities: Moulding of LEGO DUPLO and LEGO System bricks, DUPLO processing and DUPLO & LEGO packing. Currently there are 51 production lines, to be expanded to 68 in total by the time construction is complete.
Sustainability
Water: A water treatment plant was installed this year as a pilot with a capacity to reuse 400 m3 of water each month. This plant will increase to 6,500 m3 of water reusage each month by February next year.
Compliance: Delivered following our Responsible Business Principles (RBP) due-diligence plan and timeline.
Zero waste to landfill: The factory shares the same ambition as all LEGO operations of achieving zero waste from factories to landfill.
Certification: The aim is to secure Gold LEED certification (Leadership in Energy & Environmental Design) for the new buildings once it is completed including energy, water and waste.
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