Virginia Wins $366M Distribution Center in Lego's US Expansion
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Virginia has landed a $366 million deal with to build a 2 million-square-foot warehouse and distribution center near Richmond to deliver the Danish company’s famous building-block toys throughout the region.
The warehouse and distribution center will pair with a nearby $1 billion Lego toy factory that is already under construction to create a Lego logistics hub that is expected to employ more than 2,000 people once fully operational.
The warehouse and distribution center — expected to generate about 300 jobs — will be located in Prince George County’s Crosspointe Business Centre along Interstate 95. The site, a former aircraft manufacturing operation, sits on 900 acres and also has access to I-85 and I-295. It is within 500 miles of 60% of the nation’s consumers.
The 1.7 million-square-foot toy factory under construction is located about 20 miles away in Chesterfield County’s Meadowville Technology Park. That project, which broke ground in 2023, will create more than 1,700 jobs once fully operational.
Both the factory and warehouse and distribution center are expected to open in 2027.
Map showing approximate driving directions from the site of the future toy factory (north) to the future warehouse and distribution center (south). (Google Maps)
“The Lego Group is not just a household name, it’s a symbol of creativity, innovation and quality that resonates globally,” . “Three years after choosing Virginia to establish its U.S. manufacturing plant, the Lego Group’s decision to expand into Prince George County is an exciting new chapter in this partnership, bringing 305 new, high-quality jobs to the region.”
Carsten Rasmussen, Lego Group chief operations officer, said, “The regional distribution center will bring greater flexibility to our network, ensuring we are well positioned to support long-term growth in the Americas. “Together with our future Virginia factory, the RDC will shorten our supply chain in the region — reducing lead times for our customers as well as our environmental impact. We are grateful for the continued support from the commonwealth of Virginia.”
The state provided economic incentives to land the latest Lego project. The Virginia Economic Development Partnership worked with Prince George County and Virginia’s Gateway Region to capture the deal, and Youngkin approved a $2.53 million grant from the Commonwealth’s Opportunity Fund.
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“We make things, and we move things here in the Gateway Region, and the Lego Group’s decision to establish this major distribution center is a testament to our strategic location and world-class infrastructure,” said Keith Boswell, president and CEO of Virginia’s Gateway Region. “With direct access to key transportation corridors, they join a growing list of top brands like Amazon, Walmart, Aldi and Delhaize America that rely on our region to efficiently move products to market.”
The projected boom in business in the area is expected to impact the Port of Virginia. Consequently, Lego will be eligible to receive assistance from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. This program is meant to provide financial incentives to companies that establish or expand maritime-related employment centers that support port growth. Grants can be as low as $1,000 per job for the creation of 25-49 jobs up to $3,000 per jobs for producing more than 100 jobs.
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“The Port of Virginia is investing in parallel to ensure we can meet the demand that this type of expansion requires,” said Stephen Edwards, Virginia Port Authority CEO and executive director. “This announcement shows the confidence the Lego Group has in Virginia and the port’s ability to safely and sustainability move its cargo to world markets for years to come. The Lego Group is a valued port user, and we welcome the opportunity to work with its team to ensure even greater success.”
Also in May, Lego opened a new U.S. office hub in Boston’s Back Bay West district, where the company aims to employ 800 people in a six-floor, 157,000-square-foot facility to support its “long-term growth ambitions in the U.S. and the broader Americas region,” Lego noted.
The Lego Group — founded in 1932 in Billund, Denmark, by Ole Kirk Christiansen — gets its name from two Danish words, “leg godt,” which means “play well.” The family-owned company sells its products in 120 countries.
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