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Friday, January 29th, 2016  |  USD: Buy 531.29 / Sell 543.92
20 years

Costa Rican plastics company to move to Nicaragua, cites high utility, labor costs

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August 27th, 2014 (InsideCostaRica.com) Yanber S.A, a Costa Rican producer of plastic bags and packaging, has announced it will relocate to Nicaragua, laying off all 180 of its staff in Costa Rica.

 

The company produces plastic grocery bags, packaging, as well plastic sheeting for the protection of fruits used in the agricultural sector.

 

The president of the company, Samuel Yankelewitz, cited a high cost of labor in Costa Rica and high utility costs, especially electricity.

 

The company was founded in Costa Rica and has been operating here for some 50 years.

 

The Chamber of Industry and business leaders have reiterated the urgency in solving high utility costs in Costa Rica, especially electricity, which business leaders say severely affects the country’s competitiveness.

 

Minister of the Presidency, Melvin Jimenez has said that the high cost of electricity is one of the problems “inherited” by the administration of President Luis Guillermo Solis from the administration of former president Laura Chinchilla.

 

President Solis will deliver his administration’s “First 100 Days” report tomorrow.

 

 

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  • USMCNamVet1969

    Welcome to Nicaragua… I am here for the same reason. CR is business unfriendly

    • David Jones

      Hello Keith.

  • disgusted

    When a CR company finds a better place it is time to go.. Just Like burger king the USA 40% corp. tax Canada 26%. that just easy question on what to do MOVE! CR is closed to businesses here .

  • Upset with goverment of CR

    The owner of this company is good friends with PLN leadership and now that he has to pay taxes like everyone else he wants to leave for Nicaraqua. Good luck in Nicaraqua hope you can get power to run your business i know many US citizens say that power goes on and off every couple of hrs in Nicaraqua. What a joke move to Nicaraqua.

    • Likk Mii

      It goes off and suges constantly in Guanacaste too.I’ve lost more electronics than I think to care about and the scumbags wont reimburse anything.

  • prdatki

    I have lived in CR for ten yrs.My elect is 2.5 time higher than when I first got here the CAJA is too expensive for a very poor medical plan no one should pay more than $30 a month for what CR offers.

  • Ken Morris

    Maybe businesses get some breaks in Nicaragua, or maybe this business will, but Nicaragua’s sliding scale for electricity rates makes them more expensive for heavy users than they are in CR. I’m not following the rationale for moving to Nicaragua based upon electricity costs, although I guess there’s something to it that I don’t understand.

    I do follow the rationale for moving based upon lower labor costs, and to my mind if a company wants to leave CR for this reason, we should all wish them a good journey. CR is a middle-income country, not a poor country like Nicaragua, and should not compete with the poorest countries in the world on wage rates. CR simply has to position itself to attract higher-wage jobs, and ideally develop homegrown industries that provide them. Competing on wage rates is a dead end.

  • Likk Mii

    BS. The problem is the gestapo at ICE. They need to be put in front of a firing squad.Only a fool would open any type of business here.

    • duke ster

      Boy oh boy are you 100% right on Likk Mii—-! I was late paying my cell phone bill ( back when ICE was the only game in town for cell phone business) and when I went into the ICE office to pay the week late bill, they told me that I was cut off and couldn’t have another cell phone for 6 months,as a penality for being late! A Tico I knew who used to work for them and went into the office and back behind the offices to speak to the higher ups. he came back and said there was nothing he could do. So Hey guess what Ticos and ICE–FUCK YOU! Starve !!!!! Stick that up your asses ICE! So Costa Rica is losing buusinesses? Well Boo Hoo ! Don’t think you don’t have it coming because you do!. And watch as the Gringo exodus increases in volume as this next year and the years onward becomes a flight to safety. Crime will get wayyy worse in CR now that the jobs and bleeding away in droves. Just the start of companies fleeing the high costs of labor and the ridiculous labor rules.You have to ask yourselves, “why are we even in Costa Rica with all the negatives anyway?” Go ahead and take the big loss on selling your properties now because I will assure you that the time going forward will only get way worse. Is it worth dying to stay in CR living amongst the shit anyway? I will tell you–the USA never looked so good as it does right now. At least you know where the bad areas are and can stay away from them. In CR–any neighborhood is a bad one with shit shacks next door or down the street from where you have invested all your hard earned $$–no zoning. Shit neighborhoods everywhere and laws coddling the house breakers.

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