How LEGO’s Virginia Hub Improves Automation and Distribution

The iconic Danish toy manufacturer LEGO is committing US$360m to a new distribution facility in Virginia as part of a broader strategy to enhance supply chain resilience across the Americas.

The investment reflects growing recognition among global manufacturers that regionalised logistics networks could deliver competitive advantages in an increasingly volatile trading environment.

Construction has commenced on the 186,000-square-metre (two-million-square-foot) regional distribution centre (RDC) in Prince George County, positioned approximately 20 miles from a manufacturing facility currently being built in Chesterfield County.

The proximity between these sites could enable LEGO to reduce lead times, respond more rapidly to demand fluctuations and lower transportation-related emissions across its operations.

Regionalisation drives distribution strategy

The Prince George facility represents LEGO's sixth RDC globally and its second in the Americas, complementing the existing Fort Worth, Texas location.

Carsten Rasmussen, COO at LEGO, comments: "Breaking ground this week on our newest distribution centre in Prince George County marks an exciting milestone as we expand from one distribution centre in each region to two.

"Together with our LEGO Manufacturing Virginia factory, this site reflects our long-term commitment to strengthening our operations and supporting growth across the Americas."

This shift towards multiple distribution points within a single region could signal LEGO's intent to mitigate supply chain risks that have challenged global manufacturers in recent years.

By establishing redundancy in its logistics network, the company appears to be building buffer capacity that could prove valuable during disruptions.

The facility's location near Richmond could allow for shorter transportation routes to key markets across the eastern United States. This geographical positioning may reduce dependency on long-haul logistics whilst simultaneously decreasing the company's carbon footprint through reduced transportation distances.

Advanced automation and logistics integration

With capacity exceeding 200,000 pallets, the site will be managed by a third-party logistics provider and is anticipated to generate more than 300 jobs. LEGO has secured a built-to-suit lease with Crosspointe Commerce Center, a joint venture between Hillwood Investment Properties and The Silverman Group.

Cindy Sikora, Vice President of Supply Chain Operations for the Americas, says: "Our regional distribution centre will strengthen our supply chain network across the Americas, helping us bring LEGO play to more fans and retail partners efficiently and reliably.

"We are grateful for the ongoing collaboration we have had with partners across the Commonwealth of Virginia who support our ambition to build this distribution centre."

The deployment of advanced automation technologies could position the RDC as a critical component in LEGO's transition towards greater supply chain agility. Integration with the nearby LEGO Manufacturing Virginia facility could enable efficient goods movement using electric vehicles, directly connecting production to distribution whilst reducing emissions.

Sustainability and operational efficiency

LEGO is pursuing high environmental standards throughout the project. The site has been engineered with energy-efficient systems and sustainability measures, with plans to power the facility entirely through renewable energy whilst seeking LEED Gold certification.

Additionally, LEGO is targeting WELL certification, which evaluates the health and wellbeing of building occupants. WELL-certified buildings are assessed on air, water, nourishment, light, movement, thermal comfort, sound, materials, mind and community.

Electric vehicles will transport goods between the new RDC and LEGO Manufacturing Virginia, supporting the company's objective of lowering operational emissions and optimising logistics flows. This sustainability approach aligns with LEGO's global environmental commitments, which include transitioning to lower-carbon operations across all manufacturing and logistics locations.

Broader network expansion

The Virginia project forms part of LEGO's wider expansion strategy.

The company opened its sixth global factory in Vietnam and completed a 30% capacity expansion at its Hungary facility in 2025. It also launched two new RDCs in Tessenderlo, Belgium and Dong Nai, Vietnam in 2024 and 2025 respectively, reinforcing its supply chain network with additional regionalised facilities.

With the Prince George RDC and Chesterfield factory scheduled to open in 2027, LEGO could strengthen its Americas infrastructure for both retail and wholesale distribution, positioning the company to scale operations in response consumer demand whilst advancing environmental and social commitments.