LEGO announces plans to establish US manufacturing plant in Virginia

Global toy manufacturer the LEGO Group plans to invest more than $1 billion to build a factory in suburban Richmond, Virginia, Gov. Glenn Youngkin announced Wednesday.

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The factory, expected to open in 2025, will feature a carbon-neutral design and will employ more than 1,760 people, according to a news release.

"The LEGO Group’s decision to establish its U.S. manufacturing plant in Virginia shines a global spotlight on the advantages that make the Commonwealth the best business location in the nation, and we look forward to a long and successful partnership with this iconic company," Youngkin said in a statement.

25 May 2022, Bavaria, Munich: The Lego company logo built from Lego bricks, taken at the Lego Summer Birthday Bash anniversary event. Lego celebrates 90 years of corporate history. Photo: Tobias Hase/dpa (Photo by Tobias Hase/picture alliance via Get

The Virginia factory will be the LEGO Group’s seventh factory globally and the second in the Americas, joining a site in Mexico, according to a company news release. The 1.7 million-square-foot Virginia facility will mold, process and pack LEGO products and ensure they meet the company’s safety and quality requirements.

It will be located in a publicly owned industrial park in Chesterfield County, about 20 miles (32 kilometers) south of Richmond near Interstate 95. All of its day-to-day energy needs will be matched by renewable energy generated by an onsite solar park, the company pledged.

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"We were impressed with all that Virginia has to offer, from access to a skilled workforce, support for high-quality manufacturers, and great transport links," Niels Christiansen, CEO of the family-owned company headquartered in Billund, Denmark, said in a statement. "We appreciate support for our ambition to build a carbon-neutral run facility and construct a solar park and are looking forward to building a great team."

The company will be eligible for a range of taxpayer-funded incentives, including a performance-based grant of $56 million and site development improvements subject to legislative approval estimated to cost up to $19 million, a news release said.

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Construction is expected to commence this fall and a temporary packaging site will open in an existing building nearby in early 2024, creating up to 500 jobs, according to the company’s news release.