As medical device manufacturers continue to explore near-shoring strategies to balance cost efficiency with proximity to North American markets, Costa Rica has emerged as a significant production hub. Freudenberg Medical has announced the opening of its second production facility in the country’s Coyol Free Zone, representing a $25 million investment.
Key Points
- The new facility in the Coyol Free Zone spans 50,000 square feet and is dedicated to assembling high-volume minimally invasive catheters for electrophysiology, vascular and structural heart therapies. Three ISO Class 7 cleanrooms are operational from launch, and the company plans to double the facility to 100,000 square feet within three years, which would, according to the company, quadruple its total Costa Rica footprint.
- Freudenberg Medical aims to grow its local workforce from 350 to over 900 employees within the next three years. The company’s existing 30,000-square-foot facility will specialize in primary processing technologies including precision molding and extrusion of thermoplastics during 2025, while assembly operations consolidate at the new site.
- The facility deployment uses virtual reality for operator training and artificial intelligence for production layout optimization, designed to enable technology transfers from the company’s US and Ireland operations. These digital tools are intended to standardize processes across the company’s global manufacturing network.
The expansion positions the company to increase production capacity for minimally invasive medical devices while leveraging Costa Rica’s established medical technology manufacturing ecosystem.
The Data
- Freudenberg Medical operates as a contract design and manufacturing organization serving medical device and biopharma companies, with 2,900 employees across 12 global manufacturing sites. The parent Freudenberg Group employed over 52,100 people in 60 countries and generated sales of more than €11.9 billion in 2024.
- Costa Rica’s medical device industry employs more than 58,000 people and generated exports exceeding $8.7 billion in 2024, with average annual growth of 15% over the past 15 years.
- The company plans to expand its Costa Rica manufacturing footprint from the current 30,000 square feet to a combined 130,000 square feet within three years.
- The company’s workforce in Costa Rica is planned to grow from 350 to over 900 employees within the next three years.
Industry Context
Costa Rica has become a cornerstone of our global operations over the past decade. With this new facility, we are expanding our capability to deliver high-quality, cost-effective medical technology solutions on a large scale, while staying close to our customers and supporting their long-term growth.
Michael McGee, CEO of Freudenberg Medical
The facility focuses on manual assembly processes for catheter manufacturing, requiring precision work in controlled cleanroom environments. According to the company, operators train in virtual reality environments that replicate production floor conditions to support process standardization. The company uses AI-powered layout planning to model production flows and minimize waste when transferring manufacturing lines between facilities.
Costa Rica’s medical device sector has attracted investment from multinational companies seeking a location with established infrastructure and workforce capabilities. CINDE, the country’s investment promotion agency, has supported the establishment of over 450 multinational companies. The Coyol Free Zone, where both Freudenberg Medical facilities are located, provides a concentration of medical technology manufacturers during a time of increasing innovation.
