Lego can be ‘Made in China’


The Danish toy giant Lego is considering to start its production base in Asia.

“There are many places we are considering the options: Malaysia, Indonesia and Thailand, and China,” Lego head of the European market, Dirk Engehausen, said in an interview with the German newspaper Welt.

Asia now generated 10 percent of total Lego sales, but the company sees an opportunity to expand sales in the region, he said.

Lego also aims, in the future, to have the small blocks being produced in the Far East.

Today, the Lego factories are operated in Billund, Denmark, Hungary, the Czech Republic and Mexico. The latter produces bricks for the rapidly-growing U.S. market.

Europe remains important market

Even though the Asian market is on Lego’s newly-set agenda, Europe is still the main market for the company. Lego still produces most of its blocks in region.

Despite the fact that the euro crisis has set a down time for the European economies, Engehausen stated that there is obviously still room in the European household budget to buy the colorful toy bricks for their little ones.

The euro crisis has not harmed Legos – the growing sales  in some of the European countries are clear evidence, he stated.

In Spain, for example, sales grew by 10 percent in the past year, although the overall market has gone down 10 percent. In Italy, Lego’s sales even rose by 21 percent.

Engehausen revealed that Lego’s total revenue has increased 20 percent in 2012 and topped three billion euros.

Source: Ekstrabladet

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