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 during 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.
"Those are the two things required in Costa Rica," Donohue said. "Now we're going to start shifting our focus on extrusion and contract manufacturing and getting closer to the device side of the market and helping our OEMs be more efficient and cost effective."
The multi-stage project will see extrusion lines added now, and additional lines and clean room space as business grows over the next two and a half to three years.
"It's been a great adventure in Costa Rica because the medical sector is growing significantly. And we're growing with it by bringing the right technologies and processes down to Costa Rica," Donohue said.
Tekni-Plex started its Costa Rica facility in 2013 with 10,000 square feet, then added 40,000 square feet in 2014.
The company, which has facilities in North America, Mexico and Europe, also recently purchased a facility in Mexicali for medical extrusion.
"The big emphasis for us is taking what we have globally, and really putting it in a region that needs it," Donohue said.