With the aim of an expected 20% increase in production capacity by 2025, this targeted investment is in line with Mattel’s Capital Light strategy to increase manufacturing capacity, improve productivity, and leverage technological capabilities, while reducing cost and enhancing operational efficiencies. Mattel Malaysia currently employs almost 3,900 workers and with the plant’s expansion, this count is estimated to increase the total workforce by approximately 10% to nearly 4,300 workers.
Chief minister of Penang, Yab Tuan Chow Kon Yeow, said, Mattel’s investment is a “strong indication of the state’s efforts and commitment to developing a welcoming environment for industry players” and “positioning the state at the forefront of industrialisation”. “Throughout the years, Mattel has also succeeded in developing a thriving ecosystem for the toy industry in the Perai Free Trade Zone, across industries. It is heartening to see the positive spillover effects that Mattel has brought to the homegrown companies,” he added.
Ching Chiau Lee, general manager,Mattel Malaysia , stated, “Today, we celebrate and reaffirm our long-term presence in Malaysia. Over the last 40 years, we have succeeded in developing a thriving ecosystem for the local industry in the Perai Free Industrial Zone across industries such as packaging, paint, material supplies, and machine design.”
Ching added that Mattel Malaysia plays an important role in the brand's global supply chain operations, providing a strategic footprint in the region and supporting its transformation strategy for growth as an IP-driven, high-performing toy company. "We are excited for our future as we continue to exemplify progress in the technology-driven Malaysian manufacturing sector," he shared.
In conjunction with Mattel’s continued investment and commitment to its Malaysian operations, Steve Totzke, president and chief commercial officer of Mattel, announced that Hot Wheels will be collaborating with PROTON, Malaysia’s iconic national automotive brand, to produce a 1:64 scale model of a Proton SAGA, the first model manufactured by PROTON. This new Hot Wheels model is expected to start shipping and be sold worldwide by the end 2023.
Earlier this year, Mattel partnered up with Elon Musk’s company, SpaceX to develop and market items that encourage collectors and kids to tap into their inner space explorer. As part of the deal, from 2023, Mattel start marketing toys inspired by SpaceX under its Matchbox brand. The Matchbox is best known for its action figures and toy vehicles. Concurrently, astro-themed items will also be unveiled on Mattel Creations, the company's online collector platform for collaboration and direct-to-consumer platform. “We take pride in our ability to create products and experiences that honor cultural moments and inspire humankind,” said Nick Karamanos, SVP Entertainment Partnerships at Mattel.