Danish toy manufacturer Lego Group has broken ground on a new packing facility and warehouse extension located at its existing Monterrey factory site in Mexico.

The expansion work involves the addition of 59,000m² of operational space to the current 275,000m² site, bringing the total site area to 334,000m².

It is being conducted with an investment of $205m.

Simultaneously, LEGO Group is adding 17 production lines at the site to boost its manufacturing and packing capacity alongside other miscellaneous additions.

At present, the Monterrey factory has 51 production lines and will now be increased to 68 lines.

Various production activities carried out at LEGO’s Monterrey factory include moulding of LEGO DUPLO and LEGO System bricks, DUPLO processing, as well as DUPLO and LEGO packing.

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By GlobalData

Expansion work, which has already started, is expected to be completed in 2025.

LEGO Group COO Carsten Rasmussen said: “Our factory in Monterrey is the largest LEGO manufacturing facility in the world and plays a vital role in our global network.

“Our continued investment is part of the company’s strategy to locate production facilities close to our major markets, allowing us to respond to shifts in local demand, shorten the supply chain, and reduce our environmental impact.”

The Monterrey site is one of LEGO’s three factories responsible for handling all aspects of LEGO product manufacturing and packaging.

Over the course of this expansion, the company is expecting an addition of up to 900 new jobs at the site.

The Mexico-based factory currently employs approximately 5,000 people.

The expansion project aims to support the company’s long-term growth strategy in the Americas.

It is also in line with LEGO’s sustainability commitments to minimise its carbon emissions by 37% by 2032, with 2019 as the base year.

In September this year, LEGO announced the expansion of its factory in Nyíregyháza, Hungary.