LEGO
Flextronics to take over most of production / Massive job losses in Denmark and the US
CEO Jørgen Vig Knudstorp (Photo: Lego) |
Most of the famous "Lego" building bricks will be made in Asia, central-eastern Europe and Mexico in future. Danish toy manufacturer Lego (Billund; www.lego.com) has announced that Singapore-based electronics industry supplier Flextronics (www.flextronics.com), which has injection moulding facilities on three continents, will handle most of the work. Altogether, 1,200 jobs at Lego sites in the US, Denmark and the Czech Republic are threatened by the company´s plans to focus its own efforts on innovation and marketing strategy.
In the first quarter of 2007, US production will be moved from Enfield, Connecticut, to the Flextronics site in Mexico, with the loss of 300 jobs. From 2007 to 2010, output at the Billund main site in Denmark will be progressively relocated to the Singapore company´s European sites farther east. The technically demanding plastic toy components for the "Lego Technic" and "Lego Bionicle" series will continue to be manufactured at Billund, where 900 of the current 1,200 jobs are believed to be at stake. On 1 August 2006, Flextronics also will take over Lego´s facility in Kladno / Czech Republic. It already produces Lego´s "Duplo" lines in Hungary.
e-Service:
Lego annual report for 2005 as PDF document (1,603 KB)
In the first quarter of 2007, US production will be moved from Enfield, Connecticut, to the Flextronics site in Mexico, with the loss of 300 jobs. From 2007 to 2010, output at the Billund main site in Denmark will be progressively relocated to the Singapore company´s European sites farther east. The technically demanding plastic toy components for the "Lego Technic" and "Lego Bionicle" series will continue to be manufactured at Billund, where 900 of the current 1,200 jobs are believed to be at stake. On 1 August 2006, Flextronics also will take over Lego´s facility in Kladno / Czech Republic. It already produces Lego´s "Duplo" lines in Hungary.
e-Service:
Lego annual report for 2005 as PDF document (1,603 KB)
Massive job cuts expected at Lego´s main site in Billund / Denmark (Photo: Lego) |
26.06.2006 Plasteurope.com 710 [204718]
Published on 26.06.2006