Celebrating its 40th anniversary in Malaysia today, Mattel Malaysia Sdn. Bhd. (MMSB) also announced a plant expansion, expected to be completed in January 2023.
The world’s largest Hot Wheels manufacturing plant, MMSB is also the world’s only manufacturer of Hot Wheels singles, the top-selling toy globally in 20211. The plant has a current average output capacity of approximately 9.0M cars per week.
This targeted, strategic 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.
The plant expansion will support Hot Wheels growth with an expected 20% increase in production capacity by 2025.
Established in 1981 in Perai, Penang, MMSB was Mattel Inc. ‘s (NASDAQ: MAT) first manufacturing plant in Malaysia.
Malaysia plays an important role in Mattel’s supply chain for the company’s manufacturing, tooling, and commercial operations. MMSB currently employs almost 3,900 workers, actively invests in upskilling its workers, and recruits talent with technical backgrounds.
The plant expansion is estimated to increase the total workforce by approximately 10% to nearly 4,300 workers at MMSB. This expansion will also benefit Mattel Development and Tooling Sdn. Bhd. (MDT). MDT, established in 1985, is Mattel’s second plant in Malaysia and a state-of-the-art facility for product development, digital model making, mold design, and manufacturing.
Penang Chief Minister, YAB Tuan Chow Kon Yeow, stated, “We are proud that Mattel continues to invest in Penang as a key destination within its global supply chain. This 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.” He added: “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.”
Ching Chiau Lee, General Manager, MMSB, 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.” Ms. Ching continued, “MMSB plays an important role in our global supply chain operations, providing a strategic footprint in the region and supporting our 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.”
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. This timely and meaningful partnership epitomizes both brands’ proud legacy in Malaysia.