Freudenberg Medical breaks ground on second Costa Rica plant

COYOL, Costa Rica—Freudenberg Medical, a business unit of Freudenberg Group, will invest $25 million in a second manufacturing location in Central America.

The greenfield expansion, expected to be about 100,000 square feet upon completion, is intended to meet increasing global demand for precision medical components.

"We are proud to be one of the first global CDMO partners in Costa Rica, having established our first production facility here more than 12 years ago," Freudenberg Medical CEO Mark Ostwald said when the company broke ground on the new facility. "This expansion strengthens our strategy of being close to our customers and offering them efficient solutions along the entire device lifecycle—including cost-effective manufacturing capabilities on a large scale."

The first phase at the site, which will produce high-volume, minimally invasive catheters, is expected to be operational in early 2025.

This initial, 50,000-sq.-ft. facility will house three ISO 7 clean rooms.

The expansion will be "in close proximity" to Freudenberg Medical's existing 30,000-sq.-ft. facility in the Coyol Free Zone.

The catheters produced in the new location will be used in electrophysiology, vascular and heart therapies, according to Freudenberg Medical, based in Jeffersonville, Ind.

By 2028, Freudenberg plans to add another 50,000 square feet, effectively quadrupling its medical manufacturing footprint in Costa Rica.

In total, about 600 new jobs are expected to be created with the expansion, for a total of 900 employees across the Freudenberg campus.

"The investment in this new site underlines Freudenberg Medical's confidence in Costa Rica as an integral part of our global growth strategy," said Roger Gomez, vice president and general manager of Freudenberg Medical in Costa Rica. "We are committed to diversity and inclusion (and) we offer equal opportunities to all."

The existing 30,000-sq.-ft. site will transition to being Freudenberg's primary site for molding and extrusion of TPEs; the assembly operations currently at this site will move to the new location.

Sustainability upgrades at the new site will include a photovoltaic solar array for power generation; and other construction that Freudenberg Medical said will meet "the highest environmental and energy efficiency standards."

"This is another important step toward our goal of becoming a climate-neutral company by 2045," said Tilman Krauch, chief technical officer of the Freudenberg Group. "Since the beginning of our company 175 years ago, we have taken responsibility for the communities in which we are at home, as well as for our environment and a sustainable future."

Freudenberg Medical, a specialized contract design and manufacturing firm, has a presence in the Americas, Europe and Asia.

Freudenberg Medical has 11 manufacturing operations and more than 3,000 associates worldwide. Outside of catheters, the company designs and produces hypotubes, needles, balloons and coating solutions.

Freudenberg Group has more than 51,000 employees in 60 countries worldwide, with annual net sales of more than $12.6 billion.