Lego's Mexican manufacturing hub

Financial resurgence, the pivotal role of its Mexican workforce, its impressive production capabilities, and the challenges they face in an increasingly digitized world.

Lego in Ciénega de Flores. Inside this building, you will find administrative offices and packaging process lines.

From the brink of bankruptcy in 2003, this iconic Danish company has not only risen from the ashes but also established its largest global production hub in Ciénega de Flores, Mexico.

Lego's operations and investments

• The Lego factory in Ciénega de Flores, Mexico, is the largest in the world.

• Lego has invested over $2 billion in Mexico since 2008.

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Lego's financial situation

• In 2003, Lego was on the brink of bankruptcy with a debt of over $800 million.

• Jørgen Vig Knudstorp took over as CEO in 2004 and restructured the company.

Lego's Mexican workforce

• Lego in Mexico employs 5,000 people.

Production and output

• The Ciénega de Flores plant produced 141 million "sets" in 2022.

• Automation is crucial in Lego's production.

"Mini-silos" that store raw materials in a variety of colors.

Disassembled mold showing pieces in the molding stage.

Challenges faced by Lego

• Lego faces the challenge of digitization and decreasing interest in physical toys.

• The lack of labor in Nuevo León is a problem for Lego.

• Automation may reduce jobs in the future.

Some processes still involve human operation, such as in their packaging lines, but the personnel's involvement in the journey of a piece to its box is minimal.

Collaboration and business strategy

• Collaboration with movies has been beneficial for Lego.

• Nancy Sánchez, Senior Vice President of Americas Manufacturing at Lego, will manage the upcoming plant in Virginia.

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Inside the storage warehouse, approximately 600,000 boxes filled with pieces are managed and moved in a fully automated process.