More Costa Rican Investment in Nicaragua

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

Monday, September 8, 2014

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.

Access to better prices, for raw materials, labor costs, energy and cheaper production in general than in Costa Ricans is driving the decisions of these businesses. Andrés Pozuelo, Chairman of the Board Alimentos Jack’s Interamericana, a firm which contracts maquila in Nicaragua, "... said that not only price of labor is assessed when deciding to move to another country. It is also to do with the plant load covering space, access to financial capital, human capital cost and productivity, access to raw materials and energy. "

Nacion.com reports that "... Data requested from the Investment Promotion Agency of Nicaragua (ProNicaragua) indicates that the sector in which there is the most capital inflow from Costa Rica is industry, followed by agriculture and trades and services. "



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 Rica: A Greek Drama in Central America

February 2015

The country which used to stand out in the region because of its good relative level of economic, social and educational development, is accelerating its march downhill in terms of productive competitiveness, income distribution and training.

EDITORIAL

A national entrepreneur's comments about how his half a century old company has no market problems and is in full swing in the phase of increasing investment, but can no longer keep production in the country because Costa Rica "has become very expensive and high risk", is confirmation of the march downhill of the real economy.

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.

Costa Rican Cereal Bars for the Region

June 2012

Two Costa Rican companies are successfully competing in the regional market, facing competition from multinationals such as Kellogg's, Nature Valley and Bimbo.

Jack's and Cosecha Dorada are two Costa Rican companies producing cereal bars that not only have a presence in Costa Rica, but have made a place in other Central American countries, competing with multinationals.

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