Integrated Microelectronics Inc. is set to open its newest manufacturing facility in Serbia by the second half of 2018.
IMI president and chief operating officer Gilles Bernard said during the annual stockholders’ meeting the Serbia facility, which is expected to be operational by September of October this year, was in line with the company’s plan to strengthen its global footprint.
“The opening of this new production facility in southeastern Europe offers significant growth potential to all growing market for automotive components in Europe,” Bernard said.
IMI chief finance officer Jerome Tan said the Serbia facility was expected to generate an additional $250 million in revenues.
Tan said the construction of a new plant in Serbia was in anticipation of an expected increase in demand for automotive components after the company secured new contracts with mostly European firms.
IMI has been positioning in three core strategic markets, namely automotive, industrial and aerospace.
It has a total manufacturing space of 287,000 square meters in 19 sites across eight countries, including the United Kingdom, China and the Philippines.
Shareholders approved an increase in the company’s capital stock to P3 billion from P2.45 billion to support expansion.
Tan said the company had no immediate plans to conduct fund a raising activity this year.
“The increase in the company’s authorized capital stock is just in preparation in the event in the future we need to raise funds. We wanted it to be readily available,” he said.
IMI earlier earmarked $75 million in capital expenditures for 2018, up 15 percent from the actual spending of $65.3 million in 2017, to support the expansion of its Philippine and overseas operations.
IMI plans to spend P2.39 billion for the purchase of additional machineries and equipment and P600 million for the construction of a new manufacturing facility in Serbia, new structures and other improvements in Bulgaria, Philippines and the Czech Republic.
The company allocated P180 million for costs associated with the maintenance of plant and other facilities, and P300 million for investments on IT infrastructure.
