The LEGO Group announces opening of new distribution centre in Belgium

TESSENDERLO, BELGIUM – WEBWIRE – Thursday, June 6, 2024

The newest regional distribution centre brings greater flexibility and resilience to the LEGO Groups 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.

The LEGO Groupofficially opened its newest regional distribution centre (RDC) in Tessenderlo, Belgium. The opening marks an important milestone in the companys strategy to expand its supply and distribution network to support long-term growth in the market.

Its location in Belgium will service the companys omnichannel customers in Belgium, the Netherlands, Luxembourg, Great Britain, Ireland and northern France, as well as LEGO Brand Retail Stores. LEGO factories in Nyregyhza, 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:Were 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. Were grateful for the continued partnership weve 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 companys 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 companys 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 companys 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 companys 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 todays standard use of road and truck

Tessenderlo one of many investments in the companys manufacturing footprint

The opening of the Tessenderlo RDC is a meaningful milestone in the companys 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 Nyregyhza, 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.

Facts LEGO Distribution Centre Tessenderlo

Land:2,500 hectares

Building:27,000 sq. meters

Location:Tessenderlo, Belgium, approximately 100km from Brussels

Sustainability

Solar and wind power on site:On site wind turbine expected to produce approximately 40% of the total energy needs of the distribution centre. Solar panels, to be installed and operational in summer 2024, will provide additional renewable energy.

Geo-thermal energy:All heating to come from geo-thermal energy.

Compliance:Delivered following our Responsible Business Principles (RBP) due-diligence plan and timeline.

Zero waste to landfill:The new distribution centre shares the same ambition as all LEGO operations of achieving zero waste from factories to landfill.

Certification:The company has been built to BREEAM Excellent environmental standards, a third-party certification system that measures the sustainability performance of buildings.

###

Notes

*Compared to 2019

Group photo:From left: Morten Pedersen, SVP Supply Chain Operations at the LEGO Group; Nicholas Hawkins, Senior Director Supply Chain Operations at the LEGO Group; Karolien Eens, Mayor of Tessenderlo; Carsten Rasmussen, COO at the LEGO Group; Gianfranco Sgro, Executive Vice President Contract Logistics at Kuehne+Nagel; and Frdric Lehmann SVP and GM, Western Europe at the LEGO Group

Assets caption:2024 The LEGO Group.

About the LEGO Group

The LEGO Groups mission is to inspire and develop the builders of tomorrow through the power of play. The LEGO System in Play, with its foundation in LEGO bricks, allows children and fans to build and rebuild anything they can imagine.

The LEGO Group was founded in Billund, Denmark in 1932 by Ole Kirk Kristiansen, its name derived from the two Danish words LEg GOdt, which mean Play Well.

Today, the LEGO Group remains a family-owned company headquartered in Billund. Its products are now sold in more than 120 countries worldwide. For more information:www.LEGO.com

( Press Release Image: https://photos.webwire.com/prmedia/6/322770/322770-1.jpg )

WebWireID322770

This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.