LEGO
Danish toy manufacturer with supply problems / Capacities cut as part of streamlining project
Ill tidings just before Christmas: Lego (Billund / Denmark; www.lego.com), manufacturer of the popular plastic building blocks, has problems with delivery. This is not only bad news for children but also for the company itself, which has been pursuing a streamlining strategy. Mads Nipper, Lego managing board member responsible for markets and products, told the international press that the company had underestimated demand, and that its production capacity therefore was fully stretched.
 Many a Lego knight – such as King Jayko – will not arrive in time to be put under the Christmas tree this year. (Photo: Lego) |
While the toy maker has succeeded in moving out of the red, its success has a "flip side." The streamlining scheme – which also involved the pooling of sites and plant closures – led to the supply bottlenecks. Classic lines like "Lego City" and "Star Wars" or the "Duplo" lines for smaller children may be difficult to find this year. At the same time, Nipper sees a silver lining. By sticking to its chosen course, Lego has reaped the fruits of restructuring faster than the company expected, he said. Consumers should not expect a price rise this year, the executive told a German newspaper.
15.11.2006 Plasteurope.com [206735]
Published on 15.11.2006
German version of this article...