Read the Conversation
Meeting Highlights:
- 2025 strategy in action: Achieved first export within 18 months of starting construction at our new site in Costa Rica by leveraging a global, efficient manufacturing ecosystem.
- Terumo’s unique edge: Combines the agility of a startup with the strength of a global company, blending Japanese precision with American innovation.
- Why Costa Rica wins: With its proximity, time-zone alignment, and mature MedTech ecosystem, Costa Rica offers a full end-to-end solution for investors.
- Local evolution: From Neuro to Cardio to Blood and Cell Technologies, Terumo has grown focusing on manufacturing excellence and is now expanding R&D capabilities.
- What’s next: Full E2E vertical integration is the next big step for MedTech in Costa Rica.
- Culture of excellence: A team that continually exceeds expectations and celebrates achievements often.
- Talent magnetism: Hiring top talent who attracts even more talent and becomes the company's best ambassadors.
EF: Could you elaborate on Terumo BCT's contributions and highlights to the company's performance overall? What initiatives are you pursuing for 2025, your fourth year of existence?
AA: We started about four years ago, and it has been an exciting journey, especially with the growth in our market while we sought efficiencies within the company. We successfully brought the plant from construction start to our first export of a validated product in just eighteen months. That turnaround was incredibly busy and something I had not seen achieved before, but we managed it. We continue to deliver on our promise to the corporation to provide the best product of the highest quality, on time, and at a competitive cost. Additionally, we have leveraged the knowledge from and collaborated with our other plants worldwide, such as those in Vietnam, the US, and India, to create a manufacturing ecosystem that serves all regions and geographies globally.
EF: After working with numerous MedTech companies, what led you to join the Japanese Terumo?
AA: The most exciting aspect was starting a manufacturing plant from scratch. The fact that it is a Japanese company added to the attractiveness of this opportunity. For example, the Japanese influence is evident in the layout of the plant and in our internal procedures. This has been a valuable learning experience. Ultimately, regardless of our company's origin, fundamental principles must be established and adhered to. Culturally, my experience has been quite amazing, and I have learned a lot, as I previously did not have the opportunity to be exposed to Japanese culture. Working at Terumo BCT has been great, as it truly feels like having the best of both worlds. Terumo has the atmosphere of a small company, providing direct access to the highest levels of leadership while also being a large organization with the resources to invest in a new plant at a greenfield site, enabling it to become operational within eighteen months, even while navigating the challenges of building during a pandemic.
EF: What advice would you give someone interested in investing in Costa Rica?
AA: Costa Rica is currently one of the most ideal locations for such a venture. Its proximity to markets in the Americas, particularly North America, offers a significant advantage since there is a vast market for medical devices. Additionally, being in the same time zone facilitates quicker communication and decision-making, which is crucial in the healthcare sector. Over the past thirty-eight years, Costa Rica has developed a robust ecosystem for medical device manufacturing. We can source approximately 90% of our basic needs locally, except for very specialized demands or specific intellectual property that may not be available here. Basic services such as extrusion, injection molding, machining, and sterilization can all be effectively sourced within the country.
We are collaborating with several suppliers to enhance the local materials we source. Furthermore, we export directly to just about any country worldwide, positioning us as a potential manufacturing partner for many companies in the industry. For example, At Terumo BCT, we export directly to sixty countries from Costa Rica.
Things are changing and advancing rapidly, creating numerous opportunities for growth and a strong demand in the market. The MedTech sector, in particular, is on a continuous growth trajectory. There are always new disruptive technologies, research developments, and even innovative applications for existing technologies, making it an exciting and dynamic field. Having worked in this sector for about 25 years, I can attest to how fast-moving and thrilling it is. Although many people think that the heavily regulated nature of the industry slows it down, this is far from the truth. Factors such as new materials and artificial intelligence directly impact our work, and we can leverage these advancements.
EF: What does it take to build an ecosystem where 90% of your materials and technology, hardware and software, come from local suppliers?
AA: It has been an evolution. The first medical device manufacturer established operations here in 1987, but starting in 2000, many other medical device companies came to the country, creating a self-sustaining ecosystem. Once a critical mass of manufacturers with similar requirements was established, suppliers began to set up their operations nearby because it made sense for them. This encouraged even more companies to come to Costa Rica, as their suppliers were already in place. In this way, the industry evolved into what it is today. Costa Rica has begun vertically integrating, progressing from raw materials to sterilization and distribution. As expertise grows and corporations gain confidence in the talent available here, many companies will likely move into more value-added functions, ranging from shared services to R&D. This transition contributes to the continued growth of the ecosystem. Several companies already have an R&D presence in Costa Rica. I previously set up a shared-services operation for a medical device company. At Terumo BCT, we are now preparing to establish an R&D operation in Costa Rica to support product development and software solutions. The evolution we are witnessing is natural, driven by practical considerations. It is about observing what others are doing and noting effective practices. Since we work in a close-knit environment, we can see what strategies succeed and which don't. As a collective, we are dedicated to delivering the best value for our companies while ensuring that the medical device industry advances. It is not uncommon in Costa Rica to see professionals from companies that are fierce competitors in the market, come together and work towards advancing our sector locally. The more progress we make as an industry, the more capabilities we develop, ultimately benefiting each company and country.
We have experienced some failures but also achieved many successes, leading to valuable learning experiences. This has been crucial because it has allowed us to develop expertise in the field. At Terumo BCT, our factory leadership team collectively possesses over one hundred years of experience in medical devices, which gives us a deep understanding of different approaches to problem-solving. We have drawn on our extensive past experiences from various companies, which enables us to know what works effectively and try different approaches to problems. By leveraging the lessons learned over the past thirty-eight years, as a collective we can help other companies expedite their processes, moving from initial construction to their first export as quickly as possible. Costa Rica offers an ideal environment for developing manufacturing capabilities, and we are continuously learning in this process. The development of R&D has been a significant trend, evolving from sustaining engineering to developing new devices from Costa Rica. Similarly, regarding shared services, we support corporations from Costa Rica in areas such as finance, payroll, sourcing, IT, and various other functions. While we are primarily discussing medical devices, this trend is applicable across many sectors in the country. The collaboration within the sector is key and it's not uncommon for representatives from other companies in the medical device industry to visit us to explore investment opportunities and set up operations in Costa Rica. We are very open about what can be achieved and acknowledge the challenges. Our goal is to contribute to the overall success of Costa Rica. We believe in sharing knowledge and continuing to grow together.
EF: Regarding Costa Rica’s role in delivering value, you mentioned the hardware and software integration; how will this evolve in Terumo? What initiatives are you pursuing?
AA: Terumo already operates three manufacturing plants in Costa Rica, highlighting the value we see in the country. The first plant, Terumo Neuro, was established twelve years ago. Since then, we have expanded by building two additional plants: Terumo Cardiovascular and Terumo Blood and Cell Technologies. This expansion reflects our recognition of the country's potential. I can specifically discuss Terumo BCT and our plans. We are relocating a sizeable portion of our R&D organization to Costa Rica. This includes sustaining R&D for our devices and developing the necessary software to support our hardware and customer solutions we provide. This move is a significant step for Terumo BCT and demonstrates our confidence in the talent available in Costa Rica and our belief in its capabilities. While we have an eye on the idea of vertical integration for the future, our current priority is R&D, which we see as a key growth area for our 2025 and 2026 fiscal years. We have already appointed a leader for this area and are beginning the recruitment process, so we anticipate exciting times ahead.
EF: What trends do you anticipate in manufacturing in Costa Rica?
AA: When we discuss vertical integration in manufacturing, we can see what we’ve accomplished with our suppliers. However, we refer to vertical integration at the company level, from R&D to distribution, extending into commercial, regulatory, and other sectors. There are still many untapped opportunities in the market. Costa Rica is home to thirteen of the world's top thirty medical device companies. These large, complex organizations with numerous support functions and areas could also expand their capabilities in Costa Rica, further strengthening our already robust ecosystem. Opportunities exist in manufacturing, sterilization, distribution, commercial activities, regulatory affairs, and more. A wide range of prospects remain available to our company and others that can be pursued. The potential in this market is enormous, and the possibilities are limitless. The bar has been set high, and there is still much to achieve.
EF: How do you select the best and brightest to join Terumo and your team while ensuring they remain with the company?
AA: The best way to attract talent to our company is by starting with the best individuals and allowing them to spread the word. Our employees at Terumo are our greatest ambassadors, and many join us through referrals. Costa Rica is a small country, and news about our achievements travels quickly. We are fortunate to be able to choose who we want to be part of our organization. Attracting the right people ensures our employees are happy and willing to share their positive experiences. This word-of-mouth is crucial because many other companies in Costa Rica are competing for talent. Fortunately, skilled individuals are available, and we focus on attracting and developing new talent. This commitment is part of our success. We don’t just seek the best medical device professionals; we look for the best people overall. Once we bring them on board, we provide them with valuable experiences, learning opportunities, and the tools they need to succeed. It is worth it when we give our employees the confidence to learn, experiment, and even fail -provided they learn from those failures. Our employees are responsible for our success; having the best team and the right people makes a company great. Without exceptional individuals, achieving greatness is impossible.
EF: Terumo BCT recently celebrated its 60th anniversary and its 4th anniversary in Costa Rica. What proud moments would you like to celebrate?
AA: In the manufacturing business, we celebrate our achievements constantly, making pinpointing just one outstanding moment difficult. Amazing developments happen almost daily. One accomplishment I’m particularly proud of is bringing the team together and fostering an incredible work ethic among the people in Costa Rica. I take great pride in the fact that we have improved all our processes. Small victories stand out, such as being recognized by the corporation for our efforts in sustainability operations. These little wins occur regularly and continuously uplift our team. As we start the fiscal year, new challenges and fresh goals to elevate our daily performance arise. I always remind my team that if we find ourselves doing the same things next year as we did this year, then we are not progressing -we need to evolve constantly. When we do make strides, it's an occasion for a small celebration. Eventually, improvements can happen at such a rapid pace that we might not even notice them. When progress occurs naturally, it is a measure of our success. The people around me continue to amaze me daily. Each of these moments is a personal celebration for me.
