Intel Left Costa Rica for Cost Reasons

The CEO of the multinational confirmed that the closure of the plant did not respond to reasons of global strategy but to the high operating costs in the country.

Tuesday, April 22, 2014

An article in Crhoy.com reports that in a presentation for employees of the company, the executive director of Intel, Brian Krzanich said that "the decision in Costa Rica was not part of plans to reduce the company's overall payroll but 'had more to do with the cost of this operation, the long-term operational cost of the plant. We spent several years working with the Government of Costa Rica, trying to reduce the overall cost of this operation.'"

The closure of the Intel's production operations in Costa Rica, was formally announced a few weeks ago, and led 1,500 workers being laid off.



More on this topic

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.

Costa Rican Plastics Firm Moves to Nicaragua

August 2014

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.

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.

More Investment by Intel in Costa Rica

February 2012

The processor giant will invest $80 million in equipment upgrades at its plant in Belen, Heredia, in order to produce a new chip.

Modernization is necessary for the production of a more advanced chip and for optimizing the plant’s infrastructure, said Mike Forrest, general manager of Intel Costa Rica to Nacion.com.

Costa Rica: Easier Entry for Qualified Labor

May 2011

The government will grant special visas to representatives of foreign companies in the country and to those interested in investing.

Through a decree signed by President Chinchilla and Ministers of Foreign Trade and Public Security, foreign business executives and investors may remain in the country with "temporary resident" visas.

 close (x)

Receive more news about Business and Investment

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Professional ink refill franchise for sale

Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jan 22)
Brent Crude Oil
55.11
Coffee "C"
125.35
Gold
1,856
Silver
25.490