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

Chinese auto suppliers growing in US

July 24, 2014 4:17 pm ET

Two China-based automotive suppliers are expanding in the U.S., according to information released by the Michigan Economic Development Corp.    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Infiltrator goes very large scale for injection press

July 18, 2014 1:45 pm ET

Infiltrator Systems Inc. has designed and built a mammoth injection press, with 6,000 tons of clamping force, to mold septic tank halves measuring 15 ...    More

Image

Polyfab adding more room for automation and molding

July 17, 2014 12:02 pm ET

Polyfab Corp. is expanding its automation and injection molding capacity.    More

Market Reports

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

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

More Events