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Freudenberg Medical, an international contract design and manufacturing partner for the medical device and biopharma sectors, has opened a new $25 million production facility in Costa Rica, reinforcing the nation’s position as a rapidly expanding hub for MedTech near-shoring.

The site, situated in the Coyol Free Zone, is the company’s second location in Costa Rica and will specialize in assembling high-volume minimally invasive catheters. These products are essential in electrophysiology, vascular, and structural heart therapies, as well as other treatments that require highly precise manual assembly.

“This new facility represents a significant step in our growth strategy,” said Michael McGee, CEO of Freudenberg Medical, in a statement. “Costa Rica has become a cornerstone of our global operations over the past decade. With this expansion, we can deliver high-quality, cost-effective medical technology solutions on a large scale, while staying close to our customers and supporting their long-term growth.”

The 50,000-square-foot plant launched with three ISO Class 7 cleanrooms already operational. Freudenberg Medical intends to expand the facility to 100,000 square feet within three years, effectively quadrupling its manufacturing footprint in the country.

Currently, the company employs around 350 people in Costa Rica, a number expected to rise to more than 900 within three years, according to Róger Gómez, vice president and general manager of Freudenberg Medical Costa Rica.

“Freudenberg Medical’s confidence in Costa Rica is evident in this investment,” Gómez said. “We are committed to diversity and inclusion, offering equal opportunities while providing meaningful careers in a growing industry that improves lives worldwide.”

The company’s existing 30,000-square-foot facility, also located in the Coyol Free Zone, will continue focusing on core processing technologies such as precision molding and extrusion of thermoplastics for medical and biopharma applications. Assembly operations will transition to the new site.

Costa Rica’s life sciences industry has expanded significantly over the past 15 years. More than 58,000 individuals are employed in the medical device sector, and exports surpassed $8.7 billion in 2024, according to CINDE, the Costa Rican Investment Promotion Agency.

“These figures reflect not only the trust that companies like Freudenberg place in our ecosystem, but also the ability of Costa Rican talent to drive complex advanced manufacturing processes with cutting-edge technologies such as artificial intelligence and virtual reality,” said Marianela Urgellés, CINDE’s managing director. “We remain committed to supporting investments that consolidate Costa Rica as a strategic partner for innovation and global health.”

The new facility also underscores the company’s commitment to adopting advanced technologies that enhance efficiency and process standardization. Freudenberg Medical is implementing Virtual Reality and Artificial Intelligence tools to improve operator training and optimize production workflows.

Operators are trained in immersive VR environments that replicate real production conditions, ensuring consistent quality and process alignment across global sites. AI-driven planning tools are also being used to design lean production layouts, reduce waste and costs, and involve customers early in the planning of new product lines.

“With VR and AI, we are building the factory of the future here in Costa Rica,” McGee said. “This approach strengthens transparency, collaboration, and trust with our customers and ultimately benefits patients who rely on the therapies our customers provide.”

Worldwide, Freudenberg Medical employs more than 2,900 people and operates 12 manufacturing facilities in key MedTech hubs. Its vertically integrated capabilities span from advanced minimally invasive catheter systems to molding, extrusion, coatings, and components for next-generation medical devices.