Lego Group is pushing the planned start production date for its upcoming $1 billion plant in Chester, Virginia, from next year to 2027, according to a Feb. 15 press release.
The move comes after the toy giant hired Gray|Hourigan, a joint venture between engineering and manufacturing consult Gray and construction firm Hourigan, to build the factory. Given the size of the upcoming production campus — 1.7 million square feet that will house 13 buildings — as well as the installation of rooftop and ground solar panels, Lego will work with the general contractor to prepare the site for construction.
Lego first broke ground on the project in the spring of 2023, and since then work has included site readiness and continued design work.
The company also appointed Lego VP Preben Elnef as the Virginia site’s program lead, starting in April. Elnef will oversee the project, including the facility’s construction and opening, according to the press release. Elnef is also managing Lego’s upcoming $1 billion facility in Vietnam, Lego's first carbon-neutral site.
While the main facility is still under construction, the toymaker opened a temporary external packing facility in Colonial Heights, Virginia. The company said the temporary facility, which currently employs 200 people, “plays an important role in meeting consumer demand in the United States.”
“We are pleased with the progress we’re making with our investment in Virginia and grateful for the continued support from the local community,” Lego COO Carsten Rasmussen said in a statement.
The Chester plant will be Lego’s second North American site. In August, Lego invested $500 million to expand its first North America facility in Monterrey, Mexico. In November, the toy company announced it was expanding the Monterrey site again by investing $205 million to increase packing and warehousing capacity.
“Our factory in Monterrey is the largest LEGO manufacturing facility in the world and plays a vital role in our global network,” Rasmussen said in a Nov. 15 statement. “Our continued investment is part of the company’s strategy to locate production facilities close to our major markets, allowing us to respond to shifts in local demand, shorten the supply chain, and reduce our environmental impact.”
Lego boasted that its sales in the first half of 2023 outperformed other toymakers, the company announced in August. Consumer sales were up 3% year over year, driven in part by particular growth in the Americas market.
“Our strong financial position allows us to invest for the long term, particularly in areas such as digital, sustainability and manufacturing,” CEO Niels Christiansen said in an August statement.
