Daily Newsletter

02 October 2023

Daily Newsletter

02 October 2023

LEGO to expand production capacity of Nyíregyháza factory

Expected to be completed by 2025, the expansion will boost LEGO’s current packaging capacity by nearly 30%.

Soumya Sharma September 29 2023

Danish toy manufacturer Lego Group has announced its plans to expand the existing manufacturing capacity of its factory in Nyíregyháza, Hungary.

The company is expanding the size and production capability of the factory to address the rising demand for LEGO play experiences.

The toy manufacturer will add new packaging modules alongside the expansion of the factory’s warehouse areas and other miscellaneous facilities.

In total, this expansion will involve the addition of 30,000m² of built-up area to the existing site, bringing the overall area of the plant to 262,000m² and boosting its packaging capacity by approximately 30%.

LEGO COO Carsten Rasmussen said: “The LEGO Group has a strong history of operations in Nyíregyháza, celebrating 15 years of production this year.

“This investment is one of several strategic expansions in our supply chain network, setting us up for long-term growth so we may continue to delight more children and fans around the world.”

Expansion work is scheduled to commence later this year and be completed by 2025.

The Nyíregyháza factory is one of the three major production plants of LEGO. It specialises in all aspects of LEGO products’ packaging and manufacturing such as moulding LEGO elements, element processing, as well as decoration and packing of LEGO boxes.

The factory currently includes 3,300 employees, with an additional 300 team members expected to be added over the course of the expansion process.

LEGO senior vice-president and Nyíregyháza factory general manager Chresten Bruun added: “Nyíregyháza is a world-class manufacturing facility with a highly skilled and motivated workforce.

“I am thrilled that through our investments, we can bring additional production volume and activity in the next couple years.”

The move is also in line with LEGO’s sustainability goals such as minimising its carbon emissions by 37% by 2032.

Understanding the role and impact of the metaverse in the packaging sector

Many of the vital metaverse technologies are already being used or piloted by packaging companies, who have brought together AI, AR, VR, cloud, the IoT, and other technologies to monitor and maintain key assets remotely. The sector could also use immersive metaverse solutions to optimize packaging design and quality control—testing prototypes in a virtual world before bringing them to market. Another disruptive benefit will involve using underlying blockchain and digital twin technologies to assist in creating more transparent and traceable supply chains.

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