LEGO sets up first factory in Asia

Children play LEGO games at a contest in January in Shanghai. [Photo/Xinhua]

LEGO's first factory in Asia and the fifth in the world will start operation on Friday in Jiaxing, Zhejiang province, to produce up to 80 percent of all LEGO products sold in Asia, which is growing into one of its largest markets.

The factory is located in the city of Jiaxing, in the middle of the Yangtze River Delta and is approximately 100 kilometers away from Shanghai, where the LEGO Group will have its central distribution center for Asia.

"The operation of the factory allows us to get closer to China, which is one of the fastest growing markets in the world and react for adjustments to offer a better and more efficient service to local consumers," said Richard Wong, general manager of Asia manufacturing at LEGO.

"However, the selling price in China won't be adjusted to be lower for the moment as what we value most is the design and playful experience of our products."

The factory, which started trial operations in late 2015, currently has three major departments including a molding facility and packing, covering approximately a total construction area of 165,000 square meters. It is expected to be fully operational by the end of 2017. There are 1,200 employees working in the factory.

"We have built a state of the art factory in Jiaxing that adheres to the same global production standards as our factories across the world," said Jorgen Vig Knudstorp, president and CEO of the LEGO Group.

Being the most sustainable plant LEGO has ever built, the factory will have 20,000 solar panels installed on its roof in the coming months and will be put into use by the middle of 2017, reducing its carbon dioxide emissions by more than 4,000 metric tons annually and providing 7 percent of the total electricity being used at the site. For the first time, LEGO has applied LED lighting in the entire factory to save energy.

"We've applied these measures to reduce emissions by another 2.5 percent, and aim to be sustainable with 100 percent renewable energy by 2020," said Tim Brooks, vice-president of Environmental Sustainability & SMC at the LEGO Group.

LEGO Group, which entered the Chinese mainland market in the early 1980s, currently has 37 offices and more than 30 local retailers in China.