Danish toymaker Lego is investing $1 billion in building a plant on 340 acres outside Richmond, Virginia, that will be the company’s first in the United States and is expected to help with supply chain issues.
Lego plans to break ground this year on the 1.7 million-square-foot factory that will house molding, process and packing and include a high-bay warehouse. The operation is expected to employ 1,760 workers over 10 years. In exchange for its capital investment and job creation, Lego is eligible for a $56 million performance grant from the state and $19 million worth of site development improvements, according to the Virginia governor's office.
The plant is being built in Chesterfield County at Meadowville Technology Park about 20 miles south of Richmond off Interstate 295. Lego plans to power the factory with 100% renewable energy by building an on-site solar park.
The factory will be Lego's seventh across the globe and is expected to shorten supply chains and support long-term growth in the Americas, which is one of Lego's largest markets. The company’s plant in Monterrey, Mexico, currently makes most of the products for the U.S. market and will be expanded and upgraded to meet growing demand, according to a statement from the 90-year-old company.
Lego's factories are located near its largest markets to shorten the distance for products to travel, said Carsten Rasmussen, chief operating officer, in the statement. The company operates 100 Lego stores in the United States, where it has been operating since the 1960s. Its U.S. head office is in Enfield, Connecticut.
The new plant "allows us to rapidly respond to changing consumer demand and helps manage our carbon footprint,” Rasmussen said. Lego plans to work with the Virginia Talent Accelerator Program to help find "skilled employees trained to work with precision" molding technology, according to the statement.
Lego plans to open a temporary packaging site in an existing building nearby in early 2024 that will create up to 500 jobs until production at the new plant starts in the second half of 2025, according to the statement.
"We are fortunate to find a location where we can begin construction quickly and create temporary capacity in under two years,” Rasmussen said.
Lego’s decision marks another major economic development win for Virginia Gov. Glenn Youngkin since he took office in January. Last month, aircraft maker Boeing announced it planned to move its headquarters from Chicago to Arlington County.