Mattel Inc. will close its Murray, Ky., toy injection molding plant, its last U.S. manufacturing facility, by late 2002.
The El Segundo, Calif., firm said April 3 that it will move production to existing plants in Mexico, but it provided no equipment details or precise locations. Toys made at Murray include Barbie Jeeps, child car seats and playground equipment.
A year ago Mattel poured concrete at the Murray plant to thicken its floor to 12 inches, making it strong enough to handle an undisclosed number of extra injection presses there.
The Murray closure will occur over 18-24 months and affect 980 employees. It is part of Mattel's realignment program to reduce costs and is the latest in a string of closures of its U.S. plants, including its Augusta, Ga., rotational molding plant acquired from Fisher-Price.
The Murray facility also was acquired as part of the 1993 Fisher-Price purchase.
Mattel reported a decrease in before-tax profit for its third quarter last year. The figure of $135.3 million reflected a $105 million writedown associated with streamlining. In 1999 its third quarter pre-tax profit was $306.8 million.