No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveAuto Parts Company to Invest Here

Auto Parts Company to Invest Here

A German car parts manufacturer is investing $61.5 million to open a factory in Costa Rica. The company, Continental AG, made the announcement Wednesday at Casa Presidencial, accompanied by President Oscar Arias and Foreign Trade Minister Marco Vinicio Ruiz.

“This is a very important step toward the attraction of high-tech companies,” said Gabriela Llobet, director of the Costa Rican Investment Promotion Agency (CINDE), a private organization.

The first phase of the new factory will be up and running by the end of 2008 and employ 350 people. An expansion of the factory, provisionally planned for completion in 2011, would add another 200 jobs.

Continental is one of the world’s largest manufacturers of electronic components for the automotive industry. Specifically the company specializes in designing and manufacturing sophisticated braking and balance systems, power trains, chassis and transmission controls, among other things.

The Costa Rican plant will be producing electronic components for export to car manufacturers in the North American Free-Trade Agreement (NAFTA) market, said Continental Vice-President of Electronics Plants Henner Cnyrim.

Continental opted to build a new factory in Costa Rica rather than expand existing operations in Mexico and Brazil because of Costa Rica’s political stability, number of highly skilled engineers, and low costs, Cnyrim said.

“We have to say, we are very happy to see that the Costa Rican people decided in favor of CAFTA,”Cnyrim said, referring to the Central American Free-Trade Agreement with the United States (CAFTA) that Costa Ricans narrowly approved in a referendum Oct. 7.

Cnyrim said the market access afforded by CAFTA was the final piece that made Costa Rica attractive for investment, although the company had been considering Costa Rica since 2006.

Arias called the new investment a “magnet that will attract other European investment.” “Having Continental here will make it much easier to get those other companies on their way here,” Arias said, referring to German manufacturing companies he visited during the World Cup soccer tournament in Germany last year.

Continental is constructing its factory in the new Coyol Free Zone and BusinessPark in the province of Alajuela, west of San José.

At the Coyol Free Zone and BusinessPark the company joins medical equipment manufacturer CYTYC and BeamOne, a medical equipment sterilizer.

Continental AG does more than $21 billion in annual sales, operates in 19 countries and employs 89,000 people worldwide.

 

Popular Articles

Costa Rica Expat Guide to Ticks and How to Avoid Them

Of the many strange and interesting species that many hope to encounter during their time in Costa Rica, arthropods are generally lower on the...

U.S. Embassy in Honduras Issues Urgent Alert Over Mass Shooting Threats

The United States Embassy in Honduras issued a security alert warning of potential mass shooting threats targeting three locations in the capital, Tegucigalpa. The...

Costa Rica Launches Drone Program to Monitor Crocodile Populations

In Costa Rica, the exact number of American crocodiles (Crocodylus acutus) remains unknown, despite signs of population recovery in recent decades. To address this...
Avatar
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait

Latest Articles