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LEGO To Build First U.S. Factory With $1B Investment

A rendering of LEGO's first U.S. manufacturing facility in Virginia.

The toymaker that has inspired millions of children to construct buildings out of colorful cubes is preparing the pieces for its first factory in the U.S.

The LEGO Group plans to invest more than $1B to build a 1.7M SF factory in Virginia, its seventh manufacturing facility worldwide, the company announced Wednesday. 

The company has its eyes set on a 340-acre site in Chesterfield County, Virginia, where LEGO said it will bring over 1,700 new jobs.

The project is expected to start construction this fall and be completed by 2025, with a temporary facility opening in a nearby building in early 2024. LEGO said it plans to design a carbon-neutral facility that will minimize energy consumption and the use of nonrenewable sources. 

This will be LEGO's first factory in the U.S. It has primarily supplied its products to the country from its factory in Monterrey, Mexico, and it also plans to expand that facility.

“Our factories are located close to our biggest markets which shortens the distance our products have to travel. This allows us to rapidly respond to changing consumer demand and helps manage our carbon footprint," LEGO Group Chief Operations Officer Carsten Rasmussen said in a release.

Virginia Gov. Glenn Youngkin announced that the company is eligible to receive a grant of $56M based on its investment and proposed job growth. The proposed site development could make it eligible for an additional $19M, which is subject to approval by the Virginia General Assembly.

“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.

The LEGO Group currently employs around 2,600 people in the U.S., with an office in Enfield, Connecticut, and 100 LEGO-branded stores.

The company has also announced plans to expand factories in Europe and China to meet international demand. In December, it further expanded its presence in the Asian market by beginning construction on a Vietnam factory. It also has factories in Denmark, the Czech Republic and Hungary.