Lego A/S is investing 2 million euros to expand production capacity in its factory in Kladno, Czech Republic, by 30 percent.
The Billund, Denmark-based firm is expanding the Kladno site because of continuing growth and its expectations that this growth will continue, both in Europe further afield.
The expansion will include new production facilities, warehouses and administrative buildings.
"We will gradually, and depending on the actual growth rates we experience in the coming years, invest in production equipment as well as increase the number of employees," spokesman Carsten Rasmussen.
By 2015, the number of employees at the site is expected to increase by 800.