Cost-cutting forces Ayala’s IMI to exit Czech Republic biz
Integrated Micro-Electronics Inc. (IMI), the listed semiconductor and electronics manufacturing arm of the Ayala Group, will make a P635-million exit from its Czech Republic business in a bid to cut losses and return to profitability.
IMI disclosed to the stock exchange on Wednesday its wholly owned subsidiary, Cooperatief IMI Europe UA, had agreed to sell 100 percent of IMI Czech Republic to Keboda Deutschland GmbH and Co. KG.
The latter is a subsidiary of China-listed Keboda Technology Co. Ltd. that specializes in automotive and energy-related electronic components.
“This sale was executed as part of IMI’s restructuring and footprint rationalization program which was initiated in the second half of 2024,” IMI said in its disclosure.
It added that its divestment would reduce overhead and administrative expenses. IMI, whose products include printed circuit board and flip chip assemblies used in electronics, is consolidating its Europe operations into its Bulgaria and Serbia facilities.
According to IMI, majority of its customers in the Czech Republic have already been transitioned to its Serbia and Bulgaria facilities.
The share sale agreement with Keboda is still subject to closing requirements, including regulatory approvals.
In the first quarter, IMI managed to reverse its previous $3.7-million net loss with a net profit of $3.3 million.
IMI said it was able to reduce its overhead and selling, general and administrative expenses by 14 percent, thus contributing to profitability.
Optimism ahead
IMI chair Alberto de Larrazabal earlier told reporters the Ayala Group was keen on keeping IMI, saying it would likely end with a net profit this year following efforts to reduce costs and inventory levels.
De Larrazabal, also the Ayala Group’s chief financial officer, said they were more optimistic about IMI’s core businesses, as subsidiary VIA Optronics was still navigating a challenging business environment.
“We’re still trying to figure out what to do with the subsidiary. But having said that, we have actually exited certain product lines,” he said.
VIA Optronics currently manufactures display solutions, including camera modules and metal mesh touch sensors.
