The LEGO Group is to shut down the section of its factory in Denmark that decorates LEGO elements and packs them in boxes.

During the same period, the company will invest a triple-digit milllion-kroner figure in its Danish brick-moulding plant.

LEGO confirmed that by summer 2015, processing and packing will no longer take place in the Billund-based factory. The change is expected to affect 380 positions.

The decision to close the section is in line with the LEGO Group's long-term strategy of locating its packing facilities close to its core markets in order to reduce delivery times to customers.

More than 90 per cent of all LEGO bricks decorated or processed in Billund are currently shipped to other LEGO factories for inclusion in consumer sets.