Lego to build its first carbon-neutral factory, located in Vietnam

The Danish toymaker Lego has signed a Memorandum of Understanding (MoU) with Vietnam Singapore Industrial Park Joint Venture Company Limited (VSIP) to build a new factory in Vietnam. It is planned to be the company’s first carbon-neutral factory and will include investments in solar energy generation.

The over US$1 billion development is located on a 44-ha site in the Binh Duong province, around 50 km from Ho Chi Minh City, and will create up to 4,000 jobs over the next 15 years, said Lego. Construction is set to begin in the second half of 2022 and production is due to start during 2024.

The new factory will feature solar panels on its roof and VSIP will build a nearby solar project on behalf of Lego. Combined, these solar parks are expected to produce enough renewable energy to match 100% of the factory’s annual energy requirements.

Lego added that the factory will be constructed with an objective to meet a minimum standard of LEED Gold, which covers all areas of sustainability including energy, water, and waste. It will also be designed to accommodate electric vehicles and be outfitted with energy-efficient production equipment.

Together with VSIP, Lego aims to plant 50,000 trees in Vietnam to compensate for vegetation removed during construction.

The new factory will be Lego’s sixth manufacturing site and second in Asia. It expands the company’s global supply chain network which locates factories close to its major markets. This provides the flexibility to respond quickly to shifts in local consumer demand, shortens the supply chain, and reduces the environmental impact of shipping long distances.

“We are very grateful for the support of the Vietnamese government in helping us achieve our ambition to build our first carbon-neutral factory. Their plans to invest in expanding renewable energy production infrastructure and a collaborative approach to working with foreign companies who are seeking to make high-quality investments, were among the factors in our decision to build here,” said Carsten Rasmussen, Lego’s chief operations officer.

“This investment will help us to bring the power of Lego play to future generations of children. We want to inspire and develop the builders of tomorrow, and it is critical that we do so by acting in the most sustainable way possible.

“We are also looking forward to partnering with VSIP to build this state-of-the-art factory, which will directly provide thousands of jobs to the region and indirectly support local businesses and communities.”

All images: Lego