With global supply chain concerns continuing to fluctuate, nearshoring production and streamlining efforts is a big focus for companies such as Mattel.
This week, the company behind Barbie and Masters of the Universe officially revealed the consolidation of its North American manufacturing operations in Nuevo Leon, Mexico, and the expansion of its Montoi manufacturing facility.
The Montoi facility is now Mattel’s largest plant in size as it consolidates manufacturing operations from Tijuana, Mexico, and Montreal, Canada under one roof. The newly expanded plant includes more than 2 million square feet of production space and is making toys including the Barbie Dreamhouse, and items under the Fisher-Price Power Wheels and MEGA Bloks brands.
Mattel says that the expansion and consolidation help the company to “diversify its manufacturing footprint and optimize nearshoring of production, reduce complexity in the system and drive higher performance” in line with the company’s “capital-light” strategy.
“Montoi plays a central role in our reimagined global supply chain operation, providing a strategic footprint for our network in the Americas, and supports our transformation strategy for growth as an IP-driven, high-performing toy company,” says Mattel Chairman and CEO Ynon Kreiz. “We are proud that this consolidation and targeted investment have helped to fuel the regional economy and we believe that Mexico has a unique opportunity to position itself as a global manufacturing hub for toy production.”
The expansion of the plant and its workforce — which has grown from 1,600 employees in 2019 to 3,500 in 2022 — was celebrated at an opening ceremony attended by Kreiz alongside Mexico’s Economy Secretary of Nuevo Leon State Ivan Rivas Rodriguez, and Sub Secretary of Industry and Commerce of the Economy Secretary Héctor Guerrero Herrera.
In keeping with its sustainability commitments, Mattel has funded improvements to the wastewater treatment system at Montoi.