IMI president and chief executive officer Arthur R. Tan said the company is eyeing the acquisition of an electronics manufacturing and design company within the region. He said negotiations are now ongoing with the target company and that IMI will make the appropriate disclosures once an agreement has been reached.
Tan said IMI is also keen on forging strategic alliances with electronics manufacturing services (EMS) companies overseas.
He said the company has set aside $10 million (roughly P500 million) for its capital expenditures this year, significantly higher than the previous year’s $6 million to $7 million budget. This year’s capital budget, however, excludes IMI’s planned acquisitions.
IMI is currently building plants in China, Indonesia and Vietnam.
The company has recently entered partnerships with EMS companies in North America and Europe to establish a global footprint.
"Our partners Pensar Electronic Solutions in the United States and Hansatech in Great Britain help us in exploring subcontracting opportunities and serve as our fast prototyping facilities for our target markets," Tan said.
The company’s expansion is in line with its plan to go public next year or in 2007 at the latest. Tan said IMI could either list on the Philippine Stock Exchange or in the international market, like the Nasdaq or the Singapore Stock Exchange.
IMI acquired the assets of Saturn’s units in California, Singapore and Cebu in central Philippines.
The Cebu facility, which employs 314 persons, makes surface mount, chip-on-flex and flip-chip-on-flex assembly. The Singapore and California facilities produce those assemblies and also have design and development facilities.
IMI’s acquisition of Saturn’s assets will boost the Ayala unit’s production capacity by 10 percent.
Tan said the acquisition "enhances IMI’s capabilities in the areas of product design and development, manufacturing process development, and flip chip assembly, enabling us to provide competitively superior complete solutions to our customers."
IMI, based in the southern province of Laguna, is a leading EMS company that offers core manufacturing capabilities including PCB assembly, sub-assembly, and complete product assembly services, as well as higher value competencies in product design, engineering, prototyping, and supply chain management.
It is owned 78.8 percent by Ayala Corp. and 19.7 percent by chemical firm Resins Inc.