Lego A/S is stepping up efforts to improve its supply chain amid surging demand for its colorful plastic bricks.
The toy giant’s production facilities in Billund, Denmark, as well as in Nyíregyháza, Hungary, are running at full capacity, but it said it may not be able to deliver new orders from Europe in the run-up to the holiday season, the Wall Street Journal reported.
The US market, which is served by a plant in Monterrey, Mexico, should be fully supplied, the company said.
The product shortfall in Europe shows the challenges that Lego faces as it competes with US rival Mattel Inc. for the position of the world’s largest toy maker, selling to about 85 million children across 144 countries.
The Danish company in September said first-half revenue jumped 23 percent to 14.12 billion kroner (US$2.03 billion).
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