The Lego Group plans to invest over $400 million to expand its manufacturing operations in Monterrey, Mexico, by adding packing and warehousing capabilities, including a new packing hall and a fully-automated high-bay warehouse with storage stacks ranging from 40 to over 150 feet high. This expansion will add more than 667,000 square feet of space.
Construction is expected to begin in early 2027 and be completed by 2029. The project will create 1,300 new jobs, in addition to the facility’s current 7,300 workers. This expansion reflects Lego’s “long-standing commitment to Mexico and the important role the site plays in our global manufacturing network,” said COO Carsten Rasmussen.
A strategic move for growth
The Monterrey factory, which began operations in 2008, is Lego’s largest plant. It handles manufacturing and packaging of Lego products, including element molding, processing, decoration, and packing boxes, serving customers across the Americas. The expansion is part of Lego’s strategy to maintain a “flexible and resilient, regionally based global supply chain network that’s designed to make products close to Lego’s major markets,” said Nancy Sánchez, general manager of Lego factory Monterrey and SVP of Americas manufacturing at the Lego Group.
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“This approach has been a core part of our strategy for more than 15 years and helps us respond to changes in demand while supporting long-term growth,” Sánchez said. The latest investment positions the company for continued growth and will help meet demand for Lego play experiences in the future, Rasmussen added.
The expansion also supports Lego’s sustainability initiatives. In 2022, the company started replacing single-use plastic packaging with paper-based bags for its toy bricks, aiming to complete this transition by 2027. The Monterrey site incorporates rooftop solar panels, water reuse systems, waste reduction programs, and efforts to achieve zero waste to landfill.
Workforce development and community impact
The investment will provide employees with opportunities for technical training, professional development, and long-term careers. Lego collaborates with technical schools, Mexico’s Ministry of Education, and industry partners to develop workforce courses that align with the manufacturing sector’s current skill requirements. “Current and future employees will have access to training that helps them operate sophisticated software, strengthen problem-solving and continuous improvement capabilities, develop leadership behaviors, and build expertise in a modern manufacturing environment,” Sánchez said.
