Caesarstone Ltd. revealed it will outsource all of its quartz surface manufacturing and close its last company-owned plant.
CEO Yos Shiran explained the decision last week as part of the company’s third-quarter financial results, which showed worldwide revenue was down 5.7% over 2024 because of lower sales. He said it is part of a larger cost-cutting initiative in hopes of returning to profitability in Q3 2026
“We are investing in strengthening the Caesarstone brand, expanding our porcelain offering, and enhancing our R&D capabilities,” Shiran said. “As part of this strategic transformation, we are further optimizing our global manufacturing footprint with the announced closing of our Bar-Lev facility and the transfer of production to our global partners.
“This strategic action is intended to increase competitiveness, improve the Company’s profitability and cash flows, enhance service and drive additional cost efficiencies through an optimized manufacturing footprint.”
The company estimated the cost of closing the plant at $4 to $8 million, with non-cash impairment of $40to $45 million, through November 2026. Other costs were also associated with a lease through 2032 that was unable to be canceled, which was suggested could be offset by a property sublease.
“These initiatives are expected to generate annual savings of approximately $22 million and bring total savings since 2023 to over $85 million,” Shiran said, “representing necessary steps to strengthen our competitive position and support a return to positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the third quarter of next year.”