The expansion of the plant is estimated to increase the workforce by approximately 10 per cent to nearly 4,300 workers at MMSB. NSTP/DANIAL SAAD
The expansion of the plant is estimated to increase the workforce by approximately 10 per cent to nearly 4,300 workers at MMSB. NSTP/DANIAL SAAD

PRAI: Mattel Malaysia Sdn Bhd (MMSB) commemorated its 40th anniversary in Malaysia today with the announcement of a plant expansion, which is expected to be completed by next year.

Mattel global manufacturing and Asia operations senior vice-president Soo Teck Heng said the plant has an average output capacity of approximately nine million cars per week, translating into 1,000 cars every minute.

He said that as part of their long-held confidence in and commitment to Malaysian operations, they were working on an expansion of MMSB due to be completed in 2023.

"This expansion is expected to result in a 20 per cent increase in production by 2025, as well as the creation of over 400 jobs across Mattel's operations in Penang.

"Right now, we are producing about 440,000,000 cars annually, so with the additional 20 per cent increase, we are looking at producing past the 500,000,000 cars annually," he said at MMSB's 40th-anniversary celebration in Malaysia at its facility in the Prai Industrial Free Trade Zon here today.

MMSB is the world's largest Hot Wheels manufacturing plant and also the world's only manufacturer of Hot Wheels singles, the top-selling toy globally in 2021, according to The NPD Group.

Chief Minister Chow Kon Yeow was present to present the keynote speech. Also present were His Excellency Ambassador Brian McFeeters, US Ambassador to Malaysia, International Trade and Industry Ministry deputy secretary-general (Industry) Datuk Seri Norazman Ayob, Mattel Incorporated president and chief commercial officer Steve Totzke, MMSB general manager Ching Chiau Lee and Proton Holdings Bhd deputy chief executive officer Roslan Abdullah.

At today's event, Totzke also announced their licence partnership with Malaysia's iconic national automotive brand, Proton.

He said this was an exciting licence partnership as they joined to develop a Hot Wheels car modelled after the original Proton Saga, the first model manufactured by Proton. It will now become a part of Hot Wheels' singles collection.

He added that the licence partnership was aimed at upholding Mattel's and Proton's proud legacies to continue providing high-quality vehicles to fans of all ages worldwide.

"The Proton Saga was the first car from a Malaysian automotive brand and has therefore played a pivotal role in the growth of Malaysia's economy as it was the car that put Malaysians on wheels.

"The licencing partnership between Mattel and Proton is significant for Malaysians as they witness Malaysia's first car transformed into a 1:64 scale model to ignite the passion of car enthusiasts both in Malaysia and worldwide.

"On behalf of Mattel, I extend my gratitude to Proton for embarking on this new venture with us to continue to push the limits of automotive design on a small and large scale.

"This meaningful licence partnership epitomises the proud legacy of both Proton and Mattel brands and aligns with Hot Wheel's purpose to ignite the challenger spirit that lives within every kid to reach their true potential," he added.

Meanwhile, Chow said the Penang government was proud that Mattel continued to invest in the state as a key destination within its global supply chain.

"This strongly indicates 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 across industries in the Prai Free Trade Zone. It is heartening to see the positive spillover effects that Mattel has brought to the homegrown companies," he added.

Established in 1981, MMSB was Mattel Incorporated's first manufacturing plant in Malaysia, which 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 expansion of the plant is estimated to increase the workforce by approximately 10 per cent to nearly 4,300 workers at MMSB.

This expansion will also benefit Mattel Development and Tooling Sdn Bhd (MDT), established in 1985 as Mattel's second plant in Malaysia and a state-of-the-art facility for product development, digital model making, mould design, and manufacturing.