Elk River, Minn.-based Cretex Medical is investing $20 million, "over the next few years," in a new production facility and manufacturing equipment in Cartago, Costa Rica.
The company also plans to permanently close a Soquel, Calif., plant on July 26. It specializes in laser processing, molding, stamping, external manufacturing and engineering services.
"As our customers continue to grow, it's clear now is the right time to add an international footprint," Nick Morrison, chief operating officer of Cretex Cos. said in a July 1 news release.
"We evaluated a variety of countries and communities.We knew that we needed a location that brought us into proximity with our global customers. It also had to have a labor market with the right technical skills and talent, while aligning with our domestic operations."
The 65,000-square-foot medical device component manufacturing and assembly facility in Cartago is targeted to begin operations in the third quarter of 2025.
"Costa Rica's cultural emphasis on family and community, coupled with its status as a leading manufacturer of medical devices, made it an ideal match," Jeff Wollerman, CEO and president of Cretex Cos., said in the release.
The company already has a second expansion for the facility in mind, the release added.
"Medical technology is Costa Rica's main export product," it said. "The growing device manufacturing community not only puts Cretex Medical close to its customers, but the area has the physical and business infrastructure to fuel success. That includes the availability of a highly skilled talent base thanks to nearby technical schools and universities."
"Costa Rica's time zone also aligns with Cretex Medical's U.S. facilities, making collaboration easier," it added.