Read the Conversation
Meeting highlights:
- Strategic Direction & Vision: 2024 was a year of disciplined execution for Terumo Cardiovascular, centered on achieving strategic objectives and operational focus.
- Costa Rica’s Role in the Global Strategy: Costa Rica has become a key growth hub for Terumo, now among the company’s largest investments outside Japan, offering both opportunities and talent retention challenges.
- People-First Culture: A central priority is building a workplace where employees are engaged, fulfilled, and motivated to stay, with daily efforts to retain talent and foster a great place to work.
- Innovation & Constant Evolution: Daily innovation and continuous transformation are essential to remain competitive in a rapidly evolving MedTech landscape.
- Core Purpose in Saving Lives: Terumo’s unifying purpose of saving lives drives employee motivation, leadership alignment, and ongoing innovation across all levels.
EF: Could you elaborate on how was this past year for you, and the footprint that you have in Costa Rica?
AU: Terumo experienced a remarkable year in 2024, marked by a strong focus on project execution and a company-wide commitment to our mission of saving lives and leading the market. This period was defined by a significant transformation, positioning us to evolve as a unified global organization and fully leverage our international presence. This evolution remains a central focus for the coming years.
Our Costa Rica facility, spanning 16,000 square meters and featuring an ISO Class 8 clean room, now produces advanced kits for the US, Canada and EMEA markets, while Japan continues to supply the Asia Pacific Regions region.
EF: How would you describe the key factors behind your organization's recent success, and what makes Costa Rica a particularly strong location for your operations?
AU: Our organization, from our corporate headquarters in Japan to our team in Michigan, is in a strong position. There is a shared sense of satisfaction with both the effort and the results we have achieved recently, and we are committed to driving further growth and value from our facility. Like any company, we have faced and overcome a number of challenges, but I continue to believe that Costa Rica remains an excellent location for our operations.
When people ask why Costa Rica attracts so much attention, I explain that while we may not excel at everything, we consistently perform at a high level across many areas, striking the right balance. Our workforce may not be the largest, but it is trustworthy, talented, and highly motivated to learn. There is a strong culture of competence and a commitment to following procedures, addressing issues proactively, and continuously improving our processes.
At Terumo Cardiovascular, we leverage not only the talent in Costa Rica but also the expertise available in Michigan, Europe, and beyond. This access to a diverse and experienced knowledge base is a significant advantage, enabling us to execute efficiently and effectively.
EF: Terumo has focused on driving greater sustainability. How do you see the role of your operations in Costa Rica in contributing to this goal?
AU: From an environmental perspective, this year marks a significant shift for us. After dedicating our first 3 years to system optimization, business growth, and operational stability, we are now in a strong position to focus on giving back, not only to the business but also to the environment. We have established clear targets for recycling, renewable energy adoption, and CO2 emissions management. Ensuring the safety of our people remains our top priority, and we are also exploring ways to reduce water consumption, including the use of rainwater. These initiatives form the foundation of our environmental strategy moving forward.
We are fostering collaboration across our four facilities in Costa Rica under the Terumo umbrella, aiming to develop initiatives that extend beyond our sites and actively involve the surrounding community. Our focus includes launching recycling programs, streamlining operations, and sharing resources to eliminate duplication.
On the long-term sustainability front, our company is committed to continuous evolution. We regularly upgrade our systems to enhance speed and ensure business continuity, incorporating robust redundancies and the latest technologies. Our current focus is on leveraging artificial intelligence to further improve operations.
EF: Can you elaborate on how you can build a robust supply chain process that tackles challenges and helps you fulfill your KPIs?
AU: In Costa Rica, companies typically follow a well-defined path when establishing operations. The initial focus is on localizing suppliers, starting with fundamental items such as carton boxes and plastic bags. Over the past 25 years, the growth of the medical device industry has led to a significant expansion in the number and complexity of supply chain partners. Today, we are seeking suppliers capable of providing more advanced components that add greater value.
Leveraging locally produced materials helps offset import costs. The government continues to support the industry by maintaining beneficial policies, and as members of the OECD, we are committed to adhering to relevant rules and regulations.
Nonetheless, there is still progress to be made. Our primary market is the United States, and building strong partnerships and maintaining robust contingency plans remain essential priorities for us and for many companies in the industry.
EF: Building a strong relationship with your partners is key. What do you look for in a partner?
AU: When selecting partners, we prioritize those with the specific expertise we require and a proven track record of compliance. Our vetting process is rigorous, and we expect our supply chain partners to uphold the same high standards, adhering to all relevant regulations in their operations. The competitive landscape in Costa Rica demands that we seek partners committed to long-term collaboration and possessing strong financial stability.
We also value partners who are willing to invest alongside us. Where there is mutual trust, we look for ways to support them in making strategic investments. Additionally, we are dedicated to fostering the growth of smaller supply chain partners, even those who may not yet have robust financial resources. Local companies, which started with limited funding and have demonstrated impressive progress, exemplify the entrepreneurial spirit we admire. We continually seek opportunities to help develop such companies, especially those outside our core business, as they often operate with lower overhead and maintain a strong focus on cost and quality.
EF: Could you elaborate on your leadership style? How do you build a team and keep your team motivated?
AU: I am fortunate to lead a team with a strong balance of experience in medical device engineering and manufacturing, complemented by deep expertise in finance. Our finance group manages not only the Costa Rican facility but also several sites outside the country.
When it comes to our workforce and talent management, we took an unconventional approach by bringing in a leader from the hospitality sector. Her fresh perspective has added significant value, demonstrating that the right skill set and alignment with our purpose are more important than industry background. Leadership in Costa Rica has always been robust, and our current focus is on building a solid succession plan to ensure the continued growth and development of emerging talent.
Effective leadership, in my view, requires seamless communication with upper-level management and strong alignment with corporate objectives. Equally important is maintaining team motivation.
By consistently executing small tasks with excellence, we position ourselves to achieve outstanding results. While we may not lead in every area, we are performing exceptionally well across nearly all aspects of our work.
EF: Is there a final message that you would like to send to the Spanish readership of Business Week?
AU: Our primary focus remains on saving lives, which continues to inspire our talent and define our purpose. This commitment drives our daily innovation.
Costa Rica has been a tremendous success for Terumo, representing our largest investment outside Japan and underscoring the strategic importance of this location. With this significance comes considerable responsibility, and while we are proud of our achievements, we recognize that there are challenges. The current market environment is demanding, and we are working closely with every stakeholder to navigate these complexities through open dialogue and collaboration.
The influx of new companies into Costa Rica presents exciting opportunities for the local community and for us as leaders. Now, talent retention is a daily priority, and we are focused on fostering a workplace where our people feel valued and motivated to stay. Innovation is at the core of our approach, but we are aware that successful initiatives are quickly replicated in the industry. This drives us to evolve and transform continuously. Sustained success depends on our ability to adapt and remain at the forefront of our field.
