Integrated Micro-Electronics Inc. (IMI) of the Ayala Group said Wednesday its global restructuring will yield $5 million in annual savings.
IMI said in a disclosure to the stock exchange the closure of prototyping and manufacturing activities in IMI USA would have a minimal effect on the group’s operations as it accounts for only 0.30 percent of the total IMI group sales.
IMI said the office restructuring efforts in the four locations (US, Japan, Singapore and Malaysia) are part of the company’s initiatives to align the cost structure with the current business needs and is not expected to disrupt the company’s operations.
“These activities would yield to annualized cost savings of approximately $5 million improvement in the net income,” IMI said.
IMI reported Tuesday it would close its prototyping and manufacturing activities in IMI USA by end-2024. It will also dissolve its offices in Japan and Malaysia and will also downsize its office in Singapore.
IMI USA, however, would enter into a pivotal partnership with XLR8 Corp., a California-based firm renowned for its prototyping expertise.
Under the 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.
IMI USA will also be moving mass production to IMI’s facilities in North America, Europe and Asia.
IMI said its extensive sales team strategically positioned across various regions would continue to address opportunities.
The restructuring comes as the global electronics manufacturing services (EMS) industry continues to face a slowdown.
IMI is a top provider of electronics manufacturing solutions, specializing in high-quality electronics for industries with long product life cycles. It operates 19 manufacturing plants in nine countries and provides engineering and support services worldwide.
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