In a move aimed at locating its packing facilities closer to core markets in eastern Europe and Mexico and to reduce delivery times, Danish toy giant Lego (Billund; www.lego.com) has touted plans to shut down the decorating and packing activities at its main plant in Billund over the next 2 ½ years. Some 380 positions will likely be affected by the decision, the company said, adding that this year about 75 positions would be scrapped, with 200 additional jobs scheduled to be axed in 2014. Under the strategic move, the element processing and packing of bricks is to be relocated to group facilities in the Czech Republic, Hungary and Mexico by 2015.

However, Lego CEO Jorgen Vig Knudstorp emphasized that the relocation did not signify any intention to shut down production in Demark. By contrast, the toy manufacturer plans to make a triple-digit million DKK in its moulding facility in Billund, which it regards “as a skills centre in the field”. Explaining the rationale behind the relocation, Carsten Rasmussen, senior vice president of Lego’s packing and processing facilities in Europe, said, “We need to have our processing activities located closer to our main packing facilities – and as we are closing processing in Denmark there is no sense in making additional investment in packing in Billund.”