IMI said production at Chengdu, which builds electronics components for the automotive and communications sectors, ended in December, with all customer obligations met and projects shifted to other IMI locations.
The company said the asset transfer will be completed by January 2025, and the facility will be returned to the landlord by February.
Big picture
IMI continues to face headwinds after announcing plans last year to downsize operations across the US and Asia, aiming to save $5 million annually.
The restructuring originally involved halting IMI USA’s prototyping and manufacturing, along with cost-cutting efforts in Japan, Singapore, and Malaysia to align with current business needs.
“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,” IMI CEO Louie Hughes said in the filing.
“We extend our heartfelt gratitude to our Chengdu team for their dedication and hard work in ensuring a smooth transition,” he added.
China a target in Trump’s trade war
Following his historic comeback win in the recent US elections, Trump announced plans to impose tariffs on trading partners Canada and Mexico, as well as on China, its rising economic rival.
These tariffs are expected to disrupt supply chains and raise costs for firms relying on Chinese-made goods.
Strategists’ view
Jonathan Ravelas, a senior advisor at Reyes Tacandong & Co., said Ayala is taking preemptive steps to minimize potential exposure and risks to its business.
“Nobody wants to be in the line of fire. Some businesses don’t want to wait before they fall flat on their face,” he told InsiderPH.
Ravelas observed that while Trump has shown restraint on some of his most fiery pronouncements during a heated campaign, he appears determined to push through with the threat of tariffs.
Apart from Chengdu, IMI maintains factories in Jiaxing, where it serves automotive and industrial clients, and facilities in Shenzhen.
It also operates manufacturing sites in the Philippines in Laguna Technopark in Biñan.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.