Lego plans its first China factory, adding brick to great Asian wall


HONG KONG — Lego is building its first factory in China as part of a plan to move production closer to Asia, its fastest growing market.

The Danish maker of building blocks for children said it’s investing at least 100 million euros (US$130 million) in the new plant. Construction will start in 2014 and take three years.

It will be located in Jiaxing, 100 kilometers (67 miles) from Shanghai, where Lego is planning an Asian distribution center.

Lego said the new factory will be “a supply base for future growth in Asia.” The company said that in recent years sales in the region have grown by more than 50 percent annually.

Lego predicted the factory will be able to supply 70 to 80 percent of the toys it sells in Asia in 2017.