Lego has announced plans to build a new 80,000m² environmentally friendly factory in Nyíregyháza, Hungary, part of the toy giant’s €100m expansion plans. The company already has a plant on the site which manufactures a full range of the group’s Duplo brand product range. In a statement, managing director Jens Peter Clausen said: “Existing production at Nyíregyháza has proved capable of delivering high quality products at competitive prices. However the current factory and flow is not supporting Lego Group requirements. The factory investment is based on long term plans, demonstrating that the Lego Group believes the Nyíregyháza area is the right place for Duplo production for many years to come.” In the first phase, the company will build a pallet warehouse measuring 13,000m² next year. Inauguration of the second phase is planned for 2015. It will bring the area of the factory to approx. 80,000 m² and will incorporate facilities for moulding, decorating, assembly, pre packing, packing, pallet warehouse and high bay warehouse. By 2015 the factory will be equipped with 450 moulding machines and the possibility of extension. Rumours of Lego’s desire to expand in Hungary began circulating in March, when national news reports said the firm was seeking a site in the city, but that a final decision would be taken at a later date. The company formerly outsourced production in Hungary to the global electronics manufacturing services group Flextronics of Singapore which operated the Nyíregyháza site. Then, in 2009, Lego reversed its policy and took back direct control of production in Hungary. Output was centred on the one expanded site after Lego work was transferred from a second Hungarian plant in Sárvár. Lego is committed to serving the growing toy market in Eastern Europe and is in the process of expanding its industrial site at Kladno in the Czech Republic.