Lego opened a $1 billion factory in Vietnam yesterday that it says will make toys without adding planet-warming gas to the atmosphere by relying entirely on clean energy.
The factory in the industrial area of Binh Duong, close to Ho Chi Minh City, is the first in Vietnam that aims to run entirely on clean energy. Lego says it will do that by early 2026.
It’s the Danish company’s sixth worldwide and its second in Asia. It will use high-tech equipment to produce colorful Lego bricks for Southeast Asia’s growing markets.
“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 told The Associated Press.
The factory is an important factor in Lego’s quest to stop adding greenhouse gases by 2050. It has a shorter-term target of reducing emissions by 37% by 2032. The privately held group makes its bricks out of oil-based plastic and says it has invested more than $1.2 billion in a search for more sustainable alternatives. But those efforts have not always been successful.
Fast-industrializing Vietnam also aims to achieve net-zero emissions by 2050, so it needs more of its factories to use clean energy. The country hopes the plant’s 12,400 solar panels and energy storage system will help set a precedent for more sustainable manufacturing.
Locating the Lego factories in regions they supply has also helped insulate them from the tariffs ordered by U.S. President Donald Trump, Christiansen said. “Right now, I am probably more observant of what does this mean to growth in the world? Do we see consumer sentiment changing in parts of the world or not, and what would that potentially mean?” he said.
The blocks are made from differently colored plastic grains that are melted at high temperatures and then fed into metal molds. The highly-automated factory uses robots for making the bricks to a tenth of a hair’s width precision and then packaging them. It eventually will employ thousands of mostly skilled workers to operate these machines. Some of them have already begun work after being trained in in Lego’s factory in eastern China.
Manufacturing makes up a fifth of Vietnam’s GDP and consumes half the energy it uses. There are plans to phase out its coal power plants by 2040.
The Lego factory, which spans 62 soccer fields, sets the “blueprint” for making large, power-guzzling factories sustainable while remaining profitable, said Mimi Vu, a founder of the consultancy Raise Partners in Ho Chi Minh City. “Sometimes it takes a big company, like Lego, to take those risks. To show that we can do it … And we can be profitable,” she said.
The factory will benefit from a new 2024 rule known as a direct power purchase agreement or DPPA, which allows big foreign companies to buy clean energy directly from solar and wind power producers and to meet their clean energy requirements.
The factory will be linked to an adjacent energy center where electricity can be stored in large batteries.
“So even if the sun is only shining during the day, we store the energy and can use it all over. That will cover by far the majority of the consumption of the factory,” added Christiansen,
The remaining 10%-20% of the factory’s energy needs will be met through agreements with other clean energy producers. ANIRUDDHA GHOSAL, BINH DUONG, MDT/AP
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