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Danish toy manufacturer Lego will invest 53 billion forints (EUR 149.6m) to expand its plant in Nyíregyháza, in northeast Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said on Friday.

The government is supporting the investment, which will create 250 jobs, with a 5.9 billion forint grant, Szijjártó said.

The investment will be the third largest in Hungary in 2021, and will result in the second largest Lego plant worldwide, he added.

Brick by Brick: A Visit to LEGO’s Factory in Eastern Hungary
Brick by Brick: A Visit to LEGO’s Factory in Eastern Hungary

 “It’s no sin to make a mistake!”—This quote, from LEGO’s former managing director Godtfred Kirk Christiansen, can be found in the magazine of the company’s Nyiregyháza factory. Christiansen’s personal leadership style encouraged workers to come up with their own ideas, even at the risk of making mistakes. The company’s Hungarian factory, in Szabolcs-Szatmár-Bereg country, will […]Continue reading

Investments by leading international companies prove that Hungary is providing an excellent environment for high-quality production, Szijjártó said. The “Hungarian system” combines companies with cutting-edge technology, the high performance of Hungarian workers, good infrastructure and a supportive economic policy, he said.

To maintain that environment, Hungary rejects criticism of a key element, its competitive taxation system, Szijjártó added, referring to debates of an international corporate tax. Hungary wants to keep taxation in the state’s hands and hold onto the competitive edge achieved by low taxes, he said.

Global Corporate Tax Proposal Unfair to Eastern Europe
Global Corporate Tax Proposal Unfair to Eastern Europe

Hungary is not a tax haven. It is using a low corporate tax rate, combined with many other economic incentives, to bring in large amounts of foreign capital investment.Continue reading

Hungary’s swift and effective vaccination programme has brought an economic advantage, which the country can only maintain by “winning the international investment competition too”, Szijjártó said.

Lego deputy CEO Jesper Hassellund Mikkelsen said the construction will be finished in 2023, and will expand the plant by 70,000sqm. Casting capacity will grow by 50 percent, and packaging capacity by 30 percent, he said.

Featured photo illustration by József Balaton/MTVA