Mattel Closes Factories in China, Indonesia as Part of Supply Chain Optimization

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.

Mattel is about to kick off its 75th-anniversary celebration at Toy Fair New York this month. The company has also made recent strides toward its goal of producing sustainable toys and packaging.

About the author

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.