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Electronics Production | July 01, 2008

Lego and Flextronics end outsourcing contract by 2009

The LEGO Group will change its production set up and will phase out the existing outsourcing agreement with Flextronics during 2009.
While holding on to the successful strategy of establishing production hubs near the largest markets in central Europe and the USA, the LEGO Group has decided to a larger extent to focus on an internal production solution.

The LEGO Group and Flextronics have now come to the joint decision that the LEGO Group will take over LEGO production from Juárez, Mexico and Nyíregyháza, Hungary.

At the Nyíregyháza facility, the LEGO Group is in negotiations with Flextronics to take over the plant and people. These discussions will hopefully be concluded by the end of July.

The Juárez production will during Q1/09 move to a new site in Monterrey, Mexico and the site is expected to be up and running in Q2/09.

The LEGO Group further has own production sites in Billund, Denmark, and Kladno, Czech Republic, and cooperates with other manufacturing suppliers in Poland, Hungary and China. After the change in the production set-up the LEGO Group will have a total of about 6,500 employees.

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