Mega Bloks to lay off nearly 580 as it moves to close Montreal toy factory

Mattel Inc. says the Mega Bloks toy factory it acquired in 2014 will shut down next year, triggering 580 layoffs in Montreal.

Mattel says production of the interlocking plastic bricks for children will be outsourced to facilities in Mexico and China.

READ MORE: Mattel takeover of Montreal’s Mega Brands gets green light from shareholders

Located in the Montreal neighbourhood of Saint-Laurent, Mattel will begin to scale back production at the 800,000-square-foot plant this fall and shutter its doors in 2021.

Mega Brands joined Mattel in 2014 as part of a $517-million transaction.

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The American giant pledged at the time to maintain Mega Brands’ Montreal headquarters, founded in 1967.

In 2013, Mega Brands had retained the services of a lobbyist to request about $50 million in financial support in the form of a loan or subsidy from the Quebec government in order to build a new factory.

READ MORE: Mega Brands seeks $50 million from Quebec to build new plant

Mega Brands also invested $10 million in its Montreal factory in 2011 to increase production capacity.