ENFIELD, Conn. — Lego Group's recent announcement that it will build a new factory in Virginia has focused attention on the company's North American headquarters at home in Enfield, with some industry watchers saying it may not be a good sign for the company's future in Connecticut.
The Denmark-based global toymaker announced last week it plans to invest more than $1 billion to build a factory in suburban Richmond, to open in 2025. The facility will be the company's seventh globally and its first in the U.S.
A company spokesperson said the decision would have no impact on the size and scope of the Enfield headquarters, and a spokesperson for Democratic Gov. Ned Lamont told Hearst Connecticut Media that Lego's senior leadership had affirmed its commitment to keep the office in the state.
RELATED: Kellogg to split into 3 companies
“It is commonplace for corporations to invest and expand in multiple states — and they do so for a wide variety of strategic reasons,” Max Reiss told the news outlet. "Lego has been and continues to be a fantastic partner with our state and we look forward to strengthening this relationship now and into the future.”
Still, the development raises the question of whether the headquarters might eventually move to Virginia, Fred Carstensen, a professor of finance and economics at the University of Connecticut, told Hearst.
“They better be worried,” Carstensen said of state officials. “Physical proximity of a headquarters to manufacturing facilities is definitely a factor companies consider.”
A number of factors could have persuaded the company to locate the factory elsewhere, said Donald Klepper-Smith, an economist with DataCore Partners.
“Economic development these days speaks to cost structures,” Klepper-Smith told Hearst. “Forty percent of your long-term job growth is a function of the cost of doing business. And when it comes to Connecticut, businesses are being incentivized to look elsewhere.”
RELATED: Hartford's Pratt Street to see more businesses open thanks to Chamber of Commerce grant program
Have a story idea or something on your mind you want to share? We want to hear from you! Email us at newstips@fox61.com
HERE ARE MORE WAYS TO GET FOX61 NEWS
Download the FOX61 News APP
iTunes: Click here to download
Google Play: Click here to download
Stream Live on ROKU: Add the channel from the ROKU store or by searching FOX61.
Steam Live on FIRE TV: Search ‘FOX61’ and click ‘Get’ to download.