Tekni-Plex Inc. is spending about $8.5 million to double capacity at its Cartago, Costa Rica, health care plant, adding six medical tubing extrusion lines plus downstream equipment.
The plan is to create a one-stop shop for manufacturing and supply chain needs through a multi-stage expansion project for the company's TekniPlex Healthcare unit. The Wayne, Pa.-based company is expanding by 40,000 square feet, including warehouse space.
"Everybody wants to get rid of long supply chains and [create] business continuity plans. They've noticed during the pandemic that they want local suppliers now," said Bob Donohue, director of sales at TekniPlex Healthcare.
TekniPlex saw an upside to expanding in Costa Rica because major medical customers have production there. The expansion will support current business in Costa Rica, plus add capabilities for more complex extrusions and contract manufacturing.