Competitiveness Business and Investment operation costs Electricity tariffs production cost closing a business closing operations cost of doing business costs factory closing Alimentos Jack's Industry factory closure Chemistry & Plastic Companies

Costa Rican Plastics Firm Moves to Nicaragua

A company producing polyethylene products has closed part of its operation in Costa Rica due to the high cost of production in the country and transferred its factory which is now operating in Nicaragua.

Thursday, August 28, 2014

The high costs that firms have to incur to produce competitively in the country is the main reason behind the partial closure of the Yanber company's operations in Costa Rica and its transfer to Nicaragua.

Samuel Yankelewitz, general manager of the company told Crhoy.com that "... Costa Rica has become a very expensive country to compete in, for example, social security charges for an employee in Nicaragua are between $250 to $275, whereas here they are around $1,000. "

"... In the plant in Nicaragua, Yanber has 130 people, however, for the moment it does not envisage hiring more staff until the end of the partial transfer of its operations there.
The manager said that it is not only his company considering the option of moving to other Central American countries in search of lower costs, but also some from of the agricultural sector: orange, pineapple and banana producers."

Source: Crhoy.com

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Goods

polietileno

Key entities

Samuel Yankelewitz Yanber S.A.

Countries

Costa Rica Nicaragua

Insight

Competitiveness costs operation costs production cost cost of doing business factory closing closing operations closing a business Tariffs Electricity tariffs Business and Investment Chemistry & Plastic

Costa Rica: Company Avoids Bankruptcy

February 2016

Creditors of the manufacturer of flexible packaging Yanber, agreed to receive the company as payment for debts owed to each of them in order to keep the business going.

The Yanber Corporation requested use of the Preventive Convention in order to suspend payments in June 2015 , with the aim of reaching a settlement with its creditors, in order to avoid falling into bankruptcy and to continue operating. With the current agreement, the company will become the property of a trust-owned by its creditors.

Yanber Requests Suspension of Payments Agreement

June 2015

The manufacturer of flexible packaging and films which has a presence in several countries in the region and in Colombia, has filed for an agreement of suspension of payments in Costa Rica in order to avoid going bankrupt.

An article in Nacion.com reports that the company spokesmen said that the intention "...

Manufacturing Operations Move From Costa Rica to Nicaragua and El Salvador

February 2015

The company founded on Costa Rican capital, Jack's Foods, has announced that within five years it will transfer 50% of its production activities to Nicaragua, El Salvador and the United States.

From a statement issued by Alimentos Jack's:

Alimentos Jack's, a company founded on 100% Costa Rican capital, has decided to continue its expansion outside of Costa Rica and is planning to transfer 50% of its operations within five years, to the United States, El Salvador and Nicaragua.

More Costa Rican Investment in Nicaragua

September 2014

Investments by Costa Rican companies in their neighboring country went from $2.43 million in 2010 to $67.7 million in 2013.

Installation of production facilities, maquila subcontracts or transfer of part of the production process are part of the investment models that Costa Rican businessmen are utilizing in order to minimize the negative effects of the high production costs prevalent in Costa Rica and to stay competitive at the level international.