Lego unveils $1 billion sustainable factory in Vietnam

Proceeding from a new article, AP unveils that Lego has opened a state-of-the-art $1 billion factory in Vietnam, marking a major milestone in the company's commitment to sustainability. 

Located in the Binh Duong industrial zone, near Ho Chi Minh City, the factory aims to operate entirely on renewable energy by 2026, making it the first of its kind in Vietnam to achieve this ambitious goal.

This new facility, Lego's sixth worldwide and second in Asia, will manufacture colorful Lego bricks to meet the growing demand in Southeast Asia. It will also play a vital role in the company’s efforts to eliminate greenhouse gas emissions by 2050. Lego has set an interim goal of reducing emissions by 37 per cent by 2032. Currently, the company makes its iconic bricks from oil-based plastic and has invested over $1.2 billion in researching sustainable alternatives.

“We just want to make sure that the planet that the children inherit when they grow up needs to be a planet that is still there. That is functional,” Lego CEO Niels Christiansen said.

Vietnam, rapidly industrializing, has set a target of reaching net-zero emissions by 2050. The Lego plant’s 12,400 solar panels and energy storage system are expected to serve as a model for sustainable manufacturing in the country, which plans to phase out coal power plants by 2040.

The factory, spanning 62 soccer fields, is highly automated, using robots to craft bricks with precision and package them. Eventually, thousands of skilled workers will be employed to manage these systems.

The Lego facility is also the first to replace single-use plastic bags with paper for packaging, further contributing to its sustainability efforts. Additionally, the company has planted 50,000 trees to offset the environmental impact of land clearing.

Lego continues its pursuit of making its products from renewable materials. A third of the materials used in bricks last year were sourced from renewable and recycled sources, though these are more expensive than plastic derived from fossil fuels.

“It’s not inexpensive at this point in time, but we believe if we … lean into that, we help create a supply chain for the type of plastic materials that are not based on fossil fuel,” Christiansen explained.

The factory will benefit from a new 2024 regulation, known as a direct power purchase agreement (DPPA), which will allow large foreign companies to buy clean energy directly from solar and wind producers. This will help Lego meet its clean energy goals while continuing to produce its iconic toys for the world.

By Naila Huseynova