The maker of electronic components will focus its operations on more strategic locations, it said in a statement today.

The move follows last year’s decision to close its offices in Japan and Malaysia and downsize its operations in Singapore amid high interest rates and inflated inventory levels.

IMI, a contract electronics manufacturer that also provides gear to the electric vehicles (EVs) and medical industries, is grappling with a downturn in key markets.

At a briefing with market analysts in November, company officials spoke about risks driven by elevated policy uncertainty, citing high interest rates that have depressed discretionary spending.

It’s also grappling with clients’ inflated inventories.

“We are taking these steps to ensure our operations remain aligned with market demands,” IMI CEO Louis Hughes said in the statement.

Production at IMI Chengdu concluded December, the company said in a stock exchange filing, adding it will complete the transfer of assets and equipment by the end of January.

As of end-2023, IMI had four production facilities in China, with Chengdu being the smallest in terms of factory size, as well as the number of products and services offered.

IMI had posted yearly annual losses since 2019.