Lego opened a $1 billion (€906 million) factory in Vietnam on Wednesday that it says will make toys without adding planet-warming gas to the atmosphere by relying entirely on clean energy.
The factory in the industrial area of Binh Duong, close to Ho Chi Minh City, is the first in Vietnam that aims to run entirely on clean energy. Lego says it will do that by early 2026.
This marks the sixth global facility for the Danish firm and its second location in Asia. The new site will utilize advanced technology to manufacture vibrant LEGO bricks aimed at catering to the expanding markets across Southeast Asia.
“We simply want to ensure that the planet, which will be inherited by the children as they mature, remains one that exists and functions properly,” said Lego CEO Niels Christiansen to The Associated Press.
The LEGO factory will run completely on renewable energy sources.
The factory plays a crucial role in Lego’s efforts to cease all contributions to greenhouse gas accumulation by 2050. Additionally, they have set a more immediate objective to cut down on emissions by 37 percent by 2032.
The privately owned company uses oil-based plastic to create its bricks and claims to have spent over $1.2 billion (€1.09 billion) exploring greener options. However, these initiatives
have not consistently achieved success
.
Fast-industrialising
Vietnam
Additionally, it strives to reach net-zero emissions by 2050; therefore, it requires more of its facilities to utilize clean energy. The nation expects this plant’s 12,400
solar panels
And an energy storage system will serve as a model for more environmentally friendly production methods.
The building blocks are created using various colored plastic granules that undergo melting at elevated temperatures before being injected into metallic forms. This advanced facility employs robotics to manufacture these bricks with an accuracy level reaching up to one-tenth the thickness of a human hair, followed by their automated packaging.
It will ultimately require the services of thousands of primarily skilled employees to manage these machines. A number of them have already started working following their training at Lego’s facility in eastern China.
Manufacturing makes up a fifth of Vietnam’s GDP and consumes half the energy it uses. There are plans to phase out its coal power plants by 2040.
A roadmap for eco-friendlier manufacturing plants
The LEGO factory, covering an area equivalent to 62 football fields, establishes the ” blueprint” for producing large-scale items.
power-guzzling factories
sustainable and still maintain profitability,” stated Mimi Vu, one of the founders of the consulting firm Raise Partners based in Ho Chi Minh City.
“Occasionally, it requires a large corporation, such as LEGO, to undertake these risks. To demonstrate that we can achieve this…and still remain profitable,” she stated.
In 2024, the facility will gain advantages from a new regulation referred to as a direct power purchase agreement (DPPA). This enables large international firms to procure renewable energy directly from solar and wind generators, helping them fulfill their sustainability goals.
The factory will connect to a nearby energy center where substantial amounts of electricity can be stored.
batteries
.
“So, even though the sun only shines during the daytime, we capture and save the energy so it can be utilized throughout the entire period. This will more than sufficiently meet the majority of the factory’s consumption needs,” Christiansen explained.
The factory’s leftover 10 to 20 percent of required energy will be sourced via pacts with various other renewable energy providers.
“Lego and Vietnam share similar goals. Both aspire to become more environmentally friendly and contribute to addressing climate issues. With initiatives like solar power, batteries, and DPPA, it demonstrates that these objectives can indeed be achieved,” said Jesper Hassellund Mikkelsen, Senior Vice President of Asian Operations for the Lego Group, in an interview with The AP.
Growing trees and evading duties
The firm plans to establish a distribution hub in Vietnam’s southern Dong Nai province, which will assist in catering to Australian markets as well as other Asian countries where it anticipates expansion opportunities.
Placing Lego factories in areas they serve aids in shielding them from external shocks.
tariffs instituted by U.S. President Donald Trump
, Christiansen said.
“At present, I find myself closely examining what these developments signify for global growth. Are there shifts in consumer attitudes across different regions, and if so, how might that impact future scenarios?” he stated.
The five structures within the factory adhere to stringent energy efficiency criteria. Additionally, Lego has planted 50,000 trees—double the amount they removed for constructing the facility. This plant is also pioneering as the initial Lego site to substitute single-use plastic sachets with paper ones for packing purposes.
Ole Kirk Kristiansen, the founder of Lego, initially established the business as a manufacturer of wooden toys prior to securing a patent for the distinctive plastic blocks we know today in 1958. The company continues to search for methods to produce these plastic components using more eco-friendly materials.
Christiansen mentioned that Lego bricks can endure for decades and be reused, although the ultimate goal is to produce them using more sustainable materials.
He mentioned that one-third of the materials utilized in Lego bricks produced last year came from sustainable and recycled sources. However, this approach is pricier compared to using plastics derived from fossil fuels.
“At present, it isn’t cheap, but we think that if we move forward with this, we can establish a supply chain for types of plastics that aren’t derived from fossil fuels,” he explained.