Lego production could move to eastern Europe or China

Danish toy maker Lego Group is considering a partial or total move of its production facilities out of Denmark as part of plans to restructure the company and make it profitable.

Lego spokeswoman Charlotte Simonsen stressed no decision had been made, but said outsourcing production to eastern Europe or China was being considered.

The famous coloured plastic building blocks are made in Denmark and Switzerland.

Last week, Lego said it will close its factory in Switzerland, citing high costs there, and move it to the Czech Republic.

Moving production from Denmark would affect some 3,000 people at the Lego headquarters in Billund.

During the first six months of 2005, the privately owned group reported a pre-tax loss of 156 million kroner (€21m) compared to a 739 million kroner (€99.1m) loss in the same period last year.