Fijatevos.com - Look Deeper

Nitinol Devices & Component Inc. based in Fremont, CA, has announced its intention to establish an operation in one of Costa Rica's Free Trade Zone industrial parks later this year. According to an NDC press release, "the plant will produce medical guide wires that combine the company's core expertise in Nitinol processing technology with value-added extrusion, coating and assembly operations for medical device companies..."

The firm, which plans to hire 30 employees during the first year, is an example of the well-established medical-related foreign companies that have already established themselves here, mainly in industrial parks in the Central Valley that offer special tax breaks, among other advantages.

These special parks offer a number of advantages to both industry and the nation. By grouping companies together, they not only enjoy tax incentives but find it less-time consuming to establish themselves, with less red tape and clearer rules. Moreover, since Costa Rica has few zoning codes, there are fewer problems with environmental impact studies and other regulations.

Since industries are close together, security is easier. Most of the country's industries are "smokeless" types (medical equiment, electronics, etc.) and juxtaposition does not effect nearby manufacturing operations. The so-called "zonas francas" (industrial parks) also tend to avoid parking and traffic problems that often plague separated companies.

As NDC vice president of operations Jeff Lenigan put it, "Costa Rica presented the best combination of operating cost, workforce talent, and tax advantages as we considered our options to establish a low-cost manufacturing facility for our rapidly growing company." He added that NDC is outgrowing its Fremont plant.

"Our company's growth is driven by both production and Research and Development," he explained, "so we expect for R & D activities to be performed in the new facilities as well."

Underscoring the agility of free trade zone for the expanding company, the press release notes that NDC started considering Costa Rica only six months ago. Also helpful to operations considering a move here is CINDE, an agency set up to specifically guide foreign industry interested in expansion or even a startup, providing valuable information about Costa Rica's tax structure and other vital data.