Lego to build on Eastern bloc

Famous toy maker Lego is outsourcing pieces of its operation in a bid to boost profits.

The Danish company is offshoring jobs to Flextronics, a Singapore-based electronics firm.

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About 900 manufacturing jobs will be switched from Denmark to the Czech Republic and 300 from the US to Mexico over the next three years.

Lego, which employed more than 8,300 staff at the end of 2003, expects to cut its workforce to just 3,000 by the end of the restructure.