Precision parts manufacturer C-Axis Puerto Rico Inc. is investing $2.8 million to expand its medical device components line in Caguas, adding 32 jobs in the next 24 months, company officials said Tuesday.
The expansion will add 17,000 square feet to the operation that will move from its current 5,000 square foot building to a 22,000 square-foot facility owned by the Puerto Rico Industrial Development Company in the Valle Tolima Industrial Park, agency chief José Pérez-Riera said.
“Our tax and economic incentives, in addition to PRIDCO’s real estate inventory have been crucial for C-Axis’ decision to expand in Puerto Rico”, Perez-Riera said, adding the new investment “will strengthen the supply chain in Puerto Rico, since C-Axis will significantly increase its capacity as a major supplier of high precision components and parts that comply with medical device industry standards required by ISO 9001-2008 and ISO 13485.”
C-Axis Puerto Rico, Inc. was established in Caguas in 2003, providing full-service custom precision machining with a complete engineering staff to produce fast turn-around of prototypes, batch and flexible high-volume production. Ultra clean facilities are equipped to service the medical, aerospace, defense, electronic and other precision markets. The company is the local subsidiary of Minnesota-based C-Axis Inc.
C-Axis Puerto Rico President Jeff Haley said the $2.8 million investment will go toward purchasing machinery and equipment “to substantially increase its production to supply their clients’ needs.”
“All of C-Axis’ clients belong to the medical devices industry in Puerto Rico while 25 percent of its production is exported to the U.S.” he said.
C-Axis also plans to increase exports to the mainland and the international market. The company clients’ portfolio includes Stryker, St. Jude Medical, Abbott, Boston Scientific, Medtronic, Maquet and others.
“The sound presence of medical devices companies, in addition to other operational advantages, was a key element in our decision to establish operations on the island. We are proud to be part of this industrial ecosystem, serving as a key supplier for major medical companies while helping Puerto Rico become more competitive as a major investment destination for life science companies,” Haley said.
In Puerto Rico, the company recruits its personnel form the Puerto Rico Tooling & Die School, some of whom are then sent to the Minneapolis headquarters for an intensive year-long training, said C-Axis General Manager, Dan Heule.
Pérez-Riera said this recent investment represents an additional asset for Puerto Rico as an investment destination for the life sciences industry, especially the medical devices companies operating on the island, since C-Axis Puerto Rico, Inc. is a key supplier with the potential of meeting the companies’ demand for high precision components. Thus, medical devices companies in Puerto Rico can reduce their operational costs by local sourcing.
“The expansion on behalf of C-Axis is part of other recent investments, such as $4 million from Blu Pharmaceuticals which will create 120 jobs in Dorado; $34 million from Legacy Pharmaceuticals with a job commitment of 303 new jobs in Humacao; $6 million from Pioneer Hi-Bred, in Salinas, that will spur 100 additional jobs for the first industry-owned bio-agriculture research laboratory on the island, among other investment projects”, Pérez-Riera said.