Ahead of its anticipated fourth-quarter and full-year earnings report this Thursday, Mattel has revealed that it closed two more manufacturing facilities.
Speaking to the Wall Street Journal, the El Segundo-based toymaker confirmed that it closed one factory in China and another in Indonesia. The news follows Mattel‘s recent decision to shutter the Mega Brands factory in Montreal — once the largest operating toy factory in North America — with plans to shift production to Mexico.
As part of its turnaround plan, Mattel has been streamlining its production and distribution channels over the past two years. The company sold off two of its facilities in Mexico in 2018 and has been shifting production to non-owned factories. The plant in China produced finished goods for the global market while the Indonesian facility produced tooling that was used in other plants.
“We are continuing to optimize our manufacturing footprint, increase the productivity of our manufacturing infrastructure, and achieve efficiencies across our global supply chain,” says Roberto Isais, Mattel’s chief supply chain officer. Isais adds that the company believes the shift represents a competitive advantage.