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 Injection Molding, Toys
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

Small is beautiful in Nissei's newest press

November 21, 2014 2:14 pm ET

Responding to customer demand for flexibility, Japanese plastics-equipment manufacturer Nissei Plastic Industrial Co. Ltd. is demoing a caster-...    More

Image

Three advancements have driven injection molding technology

November 21, 2014 6:00 am ET

Injection molding technology has made major advances in the last 25 years, from largely a world of shoot-and-ship to doing as much as possible at the ...    More

Image

Netstal, Electra Form team up for PET preform partnership

November 20, 2014 3:15 pm ET

The Netstal division of Krauss-Maffei Corp. is teaming up with Electra Form Industries in a partnership to offer PET preform machines and molds as a...    More

Image

Thomson Plastics opens N.C. plant

November 20, 2014 3:12 pm ET

Custom injection molder Thomson Plastics Inc. has opened a new manufacturing facility in Lexington, N.C.    More

Image

Molder Carclo expands in China, chasing medical growth

November 19, 2014 3:44 pm ET

U.K.-based injection molder Carclo plc is “significantly” expanding its Chinese medical manufacturing capacity with a new factory, as the ...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

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