Source: The LEGO Group

The LEGO Group is adding another component to its global supply chain.

The company behind the iconic LEGO bricks and Minifigures inked a Memorandum of Understanding with Vietnam Singapore Industrial Park Joint Venture Company Limited (VSIP) to build a new, carbon-neutral factory in Vietnam complete with a solar energy component.

“We are very grateful for the support of the Vietnamese government in helping us achieve our ambition to build our first carbon-neutral factory,” says LEGO Group’s Chief Operations Officer, Carsten Rasmussen. “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.”

LEGO Group says that it plans to invest more than $1 billion in developing the site outside Ho Chi Minh City. Over the next 15 years, the new LEGO factory is expected to create up to 4,000 jobs.

The global supply chain for LEGO currently includes facilities in China, the Czech Republic, Hungary, Mexico, and the company’s home country of Denmark. The company says that its overall plan is designed to cut down on shipping distances by creating factories close to their intended regions of distribution.

Construction on the new facility in Vietnam is slated to begin in the second half of 2022 with the first bricks set to roll off the assembly line in 2024.