The Ayala Group’s manufacturing arm Integrated Micro-Electronics Inc. (IMI) is rationalizing its overseas operations, including the closure or downsizing of offices in some countries, in a bid to reduce costs.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said it has made significant strides in its global restructuring efforts aimed at boosting profitability and operational efficiency.
As part of the group’s strategic restructuring, IMI USA will enter into a pivotal partnership with XLR8 Corporation, a California-based firm renowned for its prototyping expertise.
Under this new agreement, IMI will channel prototyping needs of selected customers to XLR8, while XLR8 will transition mass production projects to IMI as its preferred manufacturing partner.
Consequently, IMI USA will discontinue its prototyping and manufacturing operations by the end of 2024, with production functions to be transitioned to IMI facilities across North America, Europe, and Asia.
Furthermore, in a move to better align support costs with current business needs, IMI will also be closing its sales office in Japan and will soon initiate the process of the dissolution of the entity.
“IMI’s extensive sales team, strategically positioned across various regions, will continue to address opportunities in Japan, eliminating the need for a physical office and reducing overhead costs,” the firm said.
There is also an ongoing downsizing of the Singapore and Malaysia office.
“These activities are part of IMI’s ongoing commitment to streamline operations and drive improved margins across its global footprint,” the firm added.