Lego to Outsource Production To Mexico, Czech Republic

WSJ ^ | 6/20/06 | Al-AP

[BurbankKarl]

Danish toy maker Lego Group said Tuesday it will end its production in Enfield, Conn., and lay off 300 people there in early 2007, while some 900 employees in Denmark will also be let go over the next three years.

The production in Enfield is to be moved to Mexico, the group said in a statement. Along with the 300 production layoffs, the distribution facility in Enfield will also be affected, Lego said, without providing details.

At Lego's headquarters in Denmark, up to 900 production employees will lose their jobs over the next three years as nearly a third of the domestic production will be moved to the Czech Republic, the company said.

Some Lego products, including Lego Technic and Bionicle, will still be made at Lego's headquarters in Billund, 160 miles west of Copenhagen, which presently has a staff of 3,000 employees. Outside Denmark, Lego bricks will be made by Flextronics Ltd., a Singapore-based electronics manufacturer, which operates factories in Mexico and Eastern Europe. Flextronics also is taking over Lego's factory in Kladno, in the Czech Republic, beginning Aug. 1.

In 2005, the closely held Lego posted a net profit of about $86 million, compared with a net loss of nearly four times that in 2004.

In September, Lego said it was considering moving all or parts of its production to Eastern Europe or China, and said the restructuring plans could affect all of its production facilities. A month later, Lego announced that it was closing a production facility in Switzerland and five European distribution centers, and moved those operations to the Czech Republic. That move affected 540 workers

[nutmeg]

Connecticut ping!

Please Freepmail me if you want on or off my infrequent Connecticut ping list.

[Fixit]

They moved production (actually making parts) out of Enfield, CT years ago. Now they are just getting rid of distribution & packaging.

Lego press release on the current layoffs & closings.

Layoffs in 2003 1 2

[RaceBannon]

I used to work for these people. I was WAY too politically incorrect for them.

[nutmeg]

I used to work for these people. I was WAY too politically incorrect for them.

Did you work at LEGO in Enfield? Were they a bunch of libs?

I have two cousins who work there. I suspect the one who works in the "production" area has lost her job...