With the power back on make your way back downstairs. Now the machinery below is running. Push the Make A Friend console button in the middle of the room. When you press this button the room’s machinery comes to life. Look to the left of the console and pull the three levers you see on the pieces machines. Wait for the pieces to move through the building process then pick up the completed toy at the end. Take the toy and place it on the scale next to the door with the “Nobody leaves without making a toy” sign. This door will open.
Head through the open door and prepare yourself. From this point on Huggy Wuggy will start to chase you. Walk forward towards the darkened hallway. The creature will appear from out of the darkness as you get closer to it. Immediately turn and run to the end of the conveyor belt where you got your Make A Friend. The door there is open. Go through the vents while Huggy Wuggy chases you.
At the end of the chase you will end up on a catwalk with nowhere to go. Above the catwalk is a yellow crate. Use both hands to pull it down. Huggy Wuggy will appear and the crate will drop onto it knocking it down below.