By James A. Loyola
The China operations of Integrated Micro-Electronics, Inc. (IMI), the manufacturing arm of the Ayala group, has been suspended due to the outbreak of the Novel Coronavirus (n-CoV).
In a disclosure to the Philippine Stock Exchange, IMI said it has “delayed resumption of work in selected China manufacturing facilities in conformance with local government notices regarding the outbreak of the (n-CoV).”
It explained that, “The provincial government units concerned, in accordance with the Emergency Response Law and Infectious Disease Prevention and Control Law of the People’s Republic of China, extended the holidays to ensure the implementation of measures and response requirements and further strengthen the control of the n-CoV.”
Affected were IMI Technology (Shenzen) Co. Ltd in Guangdong Province which will hopefully resume operations by February 10, Speedy-Tech Electronics (Jiaxing) Co. Ltd in Zhejiang (Feb. 10), IMI (Chengdu) Ltd. in Sichuan (Feb. 3), and VIA Optronics (Suzhou) Co. Ltd. in Jiangsu (Feb. 9). Along with the customers, IMI said it is developing contingency plans to recover production backlogs as a result of these suspensions including among others, the temporary transfer of production activities for some customers to other IMI manufacturing plants.
“Management is communicating with local government offices regarding the possibility of resuming production earlier than the mandated dates at reduced production capacity,” IMI said.
The company said it is implementing guidelines to address and manage employees who manifest symptoms associated with the coronavirus. Business trips to and from high risk regions have been deferred.
IMI added that it remains vigilant and will ensure that all employees have a healthy and safe work environment.
“IMI is currently assessing the extent of the impact of such outbreak on its operational and financial performance,” the firm said.