Toy giant Lego to cut 380 jobs at key Danish site

By Richard Higgs
EUROPEAN PLASTICS NEWS

Published: February 15, 2013 1:00 pm ET
Updated: February 15, 2013 1:02 pm ET

Related to this story

Topics Toys, Injection Molding
Companies & Associations Lego A/S

BILLUND, DENMARK -- Global toy maker Lego A/S has announced plans to cut 380 jobs by summer 2015 at its main production site in Billund, when it shuts down the plant's product decoration and packaging units.

The labor cuts, taking effect over the coming months, will start with 75 posts being declared redundant this year. A further 200 jobs will disappear during 2014, the company said.

Processing and packaging will be concentrated at other Lego group manufacturing sites in Hungary, the Czech Republic and Mexico. The move is part of the company's strategy to locate product packaging close to its core markets to reduce delivery times, Billund-based Lego explained.

Lego strongly denied the cutback is a signal it plans to halt toy production altogether at its key Danish site. In fact, the plant remains the group's centre for molding its world famous colored Lego bricks.

"On the contrary: We regard Billund as a skills center in the field of molding technology. Over the next few years we will be making a triple-digit million kroner investment in our injection molding facility in Billund," declared Lego group CEO Jørgen Vig Knudstorp. Billund is one of Europe's biggest plastics injection molding plants, he pointed out.

Worker representatives greeted news of the Danish job cuts with dismay.

"My colleagues have always pulled their weight and fought to keep jobs in Denmark. Many of them have worked for the company for years and their families worked in the area for several generations," commented Billund shop stewards' convenor Berit Flindt Pedersen.

Lego promised to do all it can to help its "highly skilled and dedicated workforce" to find alternative jobs, either within the group or with other companies.

The group is currently constructing a new 80,000-square-meter, 125 million euro ($167 million) factory complex at Nyíregyháza in northeast Hungary which is due for completion next year. Work on a new product packing unit there is due to start this year, followed by the construction of a new plastics molding plant equipped with 450 injection machines. The complex will replace Lego's leased plant nearby in 2015.

Lego is also expanding its manufacturing site at Kladno in the Czech Republic.


Comments

Toy giant Lego to cut 380 jobs at key Danish site

By Richard Higgs
EUROPEAN PLASTICS NEWS

Published: February 15, 2013 1:00 pm ET
Updated: February 15, 2013 1:02 pm ET

Post Your Comments


Back to story


More stories

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

Detroit Manufacturing Systems to hire 200 for F-150 production

October 29, 2014 10:40 am ET

Interior trim supplier Detroit Manufacturing Systems LLC plans to hire 200 assembly workers by January to support production growth of Ford Motor Co....    More

Image

Cosmetic packaging maker expands in China

October 28, 2014 3:32 pm ET

A $180 million expansion project by the Derjin Group of Taiwan has broken ground in China's Jiangsu province.    More

Image

Facing labor shortage, one processor starts its own bus service

October 27, 2014 2:08 pm ET

Like much of the manufacturing industry, Primera Plastics Inc. in Zeeland, Mich., has had trouble finding qualified workers to fill gaps in its staff....    More

Image

Milacron features multi-brand integration

October 27, 2014 1:36 pm ET

Fakuma 2014 gave Milacron LLC an ideal opportunity to show how its ever-growing portfolio of brands are working together in the injection molding sect...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events