December 13, 2023 — MP MENASHE, Israel–(BUSINESS WIRE)–Caesarstone Ltd. (NASDAQ: CSTE), a leading developer and manufacturer of high-quality engineered surfaces, today provided an update on the closure of its manufacturing facility located in Richmond Hill, Ga.
Consistent with the company’s restructuring plan initiated in mid-2023, today the Company announced the closure of its Richmond Hill manufacturing facility, effective mid-January 2024. This decision is expected to contribute savings of approximately $20 million annually by optimizing its manufacturing footprint.
Yos Shiran, Chief Executive Officer of Caesarstone, commented, “Our manufacturing network has been undergoing restructuring since earlier this year with the focus of optimizing our global production footprint. This transition will allow us to better serve our customers’ needs, streamline our operations and improve our overall competitiveness. This is part of the strategic plan we are implementing to focus on product innovation, investment in our brand, improve our go to market strategy and better position Caesarstone for long-term profitable growth in the years to come. I would like to thank the Richmond-Hill Community, Bryan County, the Georgia Government and all our valued employees and business partners there for their work and support over the years”
In connection with the facility closure, the company expects to incur restructuring expenses and a one-time non-cash impairment charge totaling $45 million to $55 million during the fourth quarter of 2023. The company estimates total cash costs will be in the amount of $3 million to $5 million related to operations, through 2024. Caesarstone expects annualized cash savings of approximately $20 million with the effect commencing during 2024, in addition to exploring opportunities to monetize the asset in the future.