The LEGO Group announces opening of new distribution centre in Belgium

• The newest regional distribution centre brings greater flexibility and resilience to the LEGO Group’s supply chain network.

• Customers in scope will benefit from a lead time reduction of up to two working days, on average.

• On-site wind turbines and solar panels will directly supply significant renewable energy to the site.

• Kuehne+Nagel to operate the site, extending the long-term partnership between the two companies.

TESSENDERLO, BELGIUM, June 4, 2024: The LEGO Group today officially opened its newest regional distribution centre (RDC) in Tessenderlo, Belgium. The opening marks an important milestone in the company’s strategy to expand its supply and distribution network to support long-term growth in the market.

Its location in Belgium will service the company’s omnichannel customers in Belgium, the Netherlands, Luxembourg, Great Britain, Ireland and northern France, as well as LEGO® Brand Retail Stores. LEGO factories in Nyíregyháza, Hungary and Kladno, Czech Republic will supply products to the centre, which will be operated by Kuehne+Nagel.

Carsten Rasmussen, Chief Operations Officer of the LEGO Group, said: “We’re thrilled to celebrate the opening of our Belgium distribution centre. Expanding our supply and distribution network will ensure that we can continue to meet customer demand and bring learning through play to millions of children for years to come. We’re grateful for the continued partnership we’ve had with Kuehne+Nagel and are happy to have them on board to operate the site.”

Gianfranco Sgro, Executive Vice President Contract Logistics at Kuehne+Nagel said: “Today we celebrate the extension of a partnership that has continued for more than 12 years. Together with LEGO we live and embody values such as innovation, infinite possibilities of imagination and creation, continuous attention to the customer and the planet we live on. We are particularly proud as from today we complete our range of offers with all our products (sea, air, road, B2C and B2B fulfillment centres) to guarantee an exceptional online and in-store experience.”

Greater flexibility to reduce customer lead times, accommodate growth

The distribution centre is the second in the company’s European distribution network, joining an existing centre in Jirny, Czech Republic. The centre is equipped to store up to 44,000 pallets and has an expected throughput of approximately 32,000 orders annually. It is co-located on the same campus as the company’s LEGO.com fulfilment centre, which will be stocked with product from the RDC. This increased capacity and agility will result in an average customer lead time reduction of up to two days for customers in scope.

Operations designed with sustainability in mind

The distribution centre shares the same sustainability commitment as all LEGO operations to reduce the company’s absolute global carbon emissions by 37 percent by 2032*. It has been built to BREEAM Excellent environmental standards, a third-party certification system that measures the sustainability performance of buildings. On-site solar panels and a wind turbine will generate significant direct renewable energy, while all heating will be provided through geo-thermal energy as part of the company’s efforts to minimise its environmental impact.

The company will utilise the European Cargo Rail network to transport LEGO products from its factories, bringing an estimated savings of 2,000t CO2 per year compared with today’s standard use of road and truck

Tessenderlo one of many investments in the company’s manufacturing footprint

The opening of the Tessenderlo RDC is a meaningful milestone in the company’s strategy to increase flexibility and agility in its operations. The LEGO Group has also invested more than US $1B in two new state-of-the-art factories in Binh Duong, Vietnam and Virginia, U.S., on track to open in 2025 and 2027 respectively. Both of these factories will run on renewable energy and contribute to the local community though the creation of highly skilled jobs.

The LEGO Group is additionally expanding four of its existing factories in Nyíregyháza, Hungary, Billund, Denmark, Jiaxing, China and Monterrey, Mexico to meet future demand and drive long-term growth. All expansions are currently in progress and on track to be completed within the coming years.