Denmark's LEGO Group, the largest toymaker in Europe, has announced on Tuesday that it is taking over LEGO production from contract manufacturer Flextronics in Nyíregyháza, Hungary.
“While holding on to the successful strategy of establishing production hubs near the largest markets in central Europe and the USA, the LEGO Group has decided to a larger extent to focus on an internal production solution and will phase out the existing outsourcing agreement with Flextronics during 2009," the company said in a statement on Tuesday.
The LEGO Group and Flextronics have worked together for almost three years, but during the past year “it has become increasingly obvious to the two parties that it would be more optimal for the LEGO Group to manage its global manufacturing set up."
The parties jointly decided that the LEGO Group will take over LEGO production from Juárez, Mexico and Nyíregyháza, Hungary.
At the Nyíregyháza facility, the LEGO Group is in talks with Flextronics to take over the plant and people, the company said, adding it hopes to conclude these discussions by the end of July.
The Juárez production will during first quarter of 2009 move to a new site in Monterrey, Mexico, and the site is expected to be up and running in second quarter of 2009.
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