Freudenberg Medical, a contract design and manufacturing (CDMO) partner to the medical device and biopharma industries, inaugurated its second production facility in Costa Rica.

The new site is a $25 million investment to bolster the company’s presence in a dynamic medtech nearshoring hub. The 50,000-square-foot facility is Freudenberg Medical’s second site in the Coyol Free Zone.

It’s dedicated to assembly of high-volume, minimally invasive catheters for electrophysiology, vascular and structural heart therapies, and other medical devices needing precision manual assembly. The company said three ISO Class 7 cleanrooms will be operational from the first day, with plans to double the site to 100,000 square feet over the next three years—quadrupling its total footprint in Costa Rica.

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

“This new facility underlines Freudenberg Medical’s confidence in Costa Rica as an integral part of our global growth strategy,” added Róger Gómez, VP and general manager of Freudenberg Medical Costa Rica. “In the next three years, we will grow our team from 350 to over 900 employees. Committed to diversity and inclusion, we offer equal opportunities to all, while providing meaningful careers in a growing industry that improves lives around the world.”

During this year, Freudenberg’s current 30,000-square foot facility nearby will specialize in primary processing technologies, including precision molding and extrusion of thermoplastics for medical and biopharma applications. Assembly operations will be consolidated at the new facility.

The expansion is supported by advanced digital tech like virtual reality (VR) and artificial intelligence (AI) to enhance operator training, streamline production, and enable tech transfers throughout its globally vertically integrated networks.

Operators will train in immersive VR environments that simulate the conditions of the production floor. AI-powered layout planning will model and optimize production flows following Lean principles: minimizing waste, reducing costs, and involving customers early in the planning of future production lines.

Marianela Urgellés, Managing Director of CINDE said the company’s expansion in Costa Rica strengthens the country’s position as a strategic hub regionally and globally.

“Today, more than 58,000 people are employed in this industry and exports surpassed $8.7 billion in 2024, growing on average 15% annually over the past 15 years,” Urgellés told the press. “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. At CINDE, we remain committed to supporting these investments that consolidate Costa Rica as a strategic partner for innovation and global health.”

Earlier this month, Freudenberg Medical inked a multi-year deal to become part of David Schnur Associates’ (DSA) network of partners.