Integrated Micro-Electronics Inc. of conglomerate Ayala Corp. has suspended work in four China-based manufacturing facilities due to the outbreak of the Novel Coronavirus (n-CoV).
IMI said in a disclosure to the stock exchange it delayed the resumption of work in manufacturing facilities in Guangdong, Zhejiang, Sichuan and Jiangsu to conform with local government notices on n-CoV.
The provincial government units extended the holidays to ensure the implementation of measures and response requirements, and further strengthen the control of the n-CoV.
The company scheduled the earliest resumption of work in its plants in Guangdong and Zhejiang on February 9 while the Sichuan and and Jiangsu facilities are expected to resume operations on February 3 and February 9, respectively.
IMI said it was working with customers to develop contingency plans to recover production backlogs as a result of the suspensions, including the temporary transfer of production activities for some customers to other IMI manufacturing plants.
It is also communicating with local government offices regarding the possibility of resuming production earlier than the scheduled dates at reduced production capacity.
“The company is implementing guidelines to address and manage employees who manifest symptoms associated with the coronavirus. Business trips to and from high risk regions have been deferred,” IMI said.
“IMI remains vigilant and will ensure that all employees have a healthy and safe work environment,” it added.
IMI is assessing the extent of the impact of such outbreak on its operational and financial performance.
IMI recorded a significant drop in net profit in the first nine months of 2019 to $451,000 from $41.4 million a year ago as the slowdown in IMI’s main market segments, compounded by the effects of several geopolitical issues, hindered growth.
The persistent contraction in the automotive sector, especially in China, has reduced customer demand forecasts, leading to challenged margins as new manufacturing lines are temporarily underutilized.
IMI is among the leading global manufacturing solutions expert in the world. It specializes in highly reliable and quality electronics for long product life cycle segments, such as automotive, industrial electronics and more recently, the aerospace market.
From its 21 manufacturing plants across 10 different countries, IMI provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.
