The Ayala Group’s Integrated Micro-Electronics, Inc. (IMI), a leading provider of electronics manufacturing services, announced the closure of its facility in Chengdu, China.
In a disclosure to the Philippine Stock Exchange, the firm said this move is part of its ongoing efforts to streamline operations and reduce costs, aligning with the company’s strategy to consolidate its footprint into strategically located facilities.
Production at IMI Chengdu concluded in December 2024, after all customer commitments were successfully met. Some remaining customer projects have been seamlessly transferred to other IMI sites.
As part of the closure process, IMI said it will complete the transfer of assets and equipment by the end of January 2025. The facility is scheduled to be formally handed back to the landlord by February 2025.
Additionally, IMI is working diligently to comply with local government regulations, initiating a six-month winding-up period starting in February 2025.
The firm said, "This strategic move is expected to enhance operational efficiency and bolster IMI’s capability to deliver high-quality products and services to its global portfolio of customers from its other strategically positioned manufacturing sites."
“We are taking these steps to ensure our operations remain aligned with market demands while enhancing our ability to serve customers with agility and cost-effectiveness.
“We extend our heartfelt gratitude to our Chengdu team for their dedication and hard work in ensuring a smooth transition,” said IMI Chief Executive Officer Louie Hughes.
IMI reported that its net loss ballooned almost five-fold to P$9.2 million in the first nine months of 2024, from P$1.6 million in the same period of 2023.
The firm said its core businesses have remained profitable for the year, generating $4.3 million of net income excluding one-offs over the first nine months of 2024.
IMI’s group year-to-date revenues as of September 2024 totaled $841 million with $758 million generated from its core businesses which navigated soft market conditions leading to a nine percent decline in core sales year-on-year.
“The automotive market’s continued uncertainty, coupled with industrial customers’ rightsizing of inventory levels has led to reduced ordering patterns and pushouts of new product ramp-ups,” IMI said.
These have resulted in lower utilization across multiple IMI sites, affecting profitability for the company.
IMI ranks among the top EMS providers in the world by the Manufacturing Market Insider, based on 2023 revenues and remains among the top ten in the automotive sector according to New Venture Research.
From its 19 manufacturing plants across nine different countries, the company provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.