KUALA LUMPUR (Dec 6): Malaysian Pacific Industries Bhd (MPI) said it will cease its leadframes manufacturing operations under Dynacraft Industries Sdn Bhd by end-January next year.

MPI, part of the Hong Leong Group, said the cessation “is made after a careful business strategy review”.

The decision “will not have any material impact” on MPI’s earnings for the financial year ending June 30, 2024 (FY2024), it said.

“The board of directors of MPI is of the opinion that the cessation of DCI (Dynacraft Industries) manufacturing operations is in the best interest of the MPI Group,” it added.

Set up in 1974, Dynacraft Industries is “one of the largest manufacturers of leadframes in the region” with a manufacturing facility in Penang, MPI’s annual report showed.

Leadframes, a thin layer of metal which forms semiconductor device assembly, are used in a broad range of electronic products, such as computers, automotive components and telecommunications, the report said.

Shares of MPI settled 28 sen or 1.04% lower at RM26.70 on Wednesday, giving it a market capitalisation of RM5.6 billion.