By Kylie Madry

MEXICO CITY (Reuters). – The top-selling city Mattel Inc Mega Bloks toys, which are now made in Mexico by the U.S.-based toymaker, will soon be available for purchase. This is the company’s latest move in relocating its supply chain to Mexico after the Asia coronavirus pandemic.

Mattel revealed in March that it spent approximately a billion pesos (or $50 million) to expand a Nuevo Leon plant. Mattel prioritized production in Latin America’s second largest economy over the hubs of China, Vietnam, and Malaysia.

Monterrey’s Mattel plant, which is close to the U.S. Border, covers 200,000m2 (2.25 million sq. feet) and employs nearly 3,500 workers.

Gabriel Galvan from Mattel Latin America, Mattel Latin America’s Managing director said to Reuters that having product near your customer and not needing to ship it to Asia makes this more lucrative and more competitive.

Galvan stated that the expansion was originally proposed in 2020. Mattel shut down two Asian factories in 2019, and recently closed another plant in Canada, and one in Mexico in preparation for expanding the megafactory.

Galvan explained that the Toymaker’s decision was only the latest indication of how concerns about the overextended supply chains in the world are driving new interest in the “nearshoring” of industries such as textiles or automaking, which is already an important part of Mexican manufacturing.

Mexico’s Finance Minister recently said that there was high demand for northern Mexico industry parks.

Nuevo Leon state, the toymaker, stated in a press release that it plans to invest twice in the factory in five years.

Galvan stated that Mattel sees this plant as a huge opportunity because it is close to Dallas-Fort Worth, which Galvan described as the second-largest distribution center in America. It’s convenient for us because we can get there within 24 hours.