Israeli company Caesarstone (Nasdaq: CSTE), which manufactures quartz and porcelain surfaces for kitchen countertops, bathrooms and interior design, has been struggling in recent years to recover from the crisis in which it has been mired. The company has now announced another streamlining measure in that it is closing its plant in the Bar Lev industrial Zone near Karmiel in northern Israel. The closure includes the layoff of 200 employees.
Thirty months ago, the company closed its factory on Kibbutz Sdot Yam, where it began operations more than 30 years ago and dismissed 150 employees. At the end of 2024, Caesarstone had 1,532 employees including 371 in Israel, so the latest layoffs will leave only a small number of employees here.
“Necessary steps
The company says this is a strategic step designed to improve profitability and cash flow and optimize production. The company will record a non-cash impairment of $40-45 million and cash costs of $4-8 million in the coming quarters, due to the closure. However, it also has expenses on the long-term lease agreement, and it aims to find to sublet the factory. Caesarstone notes that production from the site will be transferred to its subcontractors.
Caesarstone CEO Yosef Shiran said, “We are rapidly moving forward in changing our business model, which focuses on innovation, product development and marketing. We are investing in strengthening the Caesarstone brand, expanding our porcelain offering and increasing our R&D capabilities.
“As part of the strategic shift, we are further optimizing our global manufacturing footprint, and are announcing the closure of the Bar-Lev site and the transfer of production to our global partners. This step should generate annual savings of roughly $22 million and bring total savings since 2023 to more than $85 million – necessary steps to strengthen our competitive position and return to positive adjusted EBITDA in the third quarter of next year.”
Weak demand and competitive pressures
Factors weighing on Caesarstone’s stock include legal proceedings over claims of health damage to installers exposed to materials in its surfaces, increasing competition in the market, and uncertainty on global tariffs. The company says 48% of revenue is from the US market, and it is working to streamline its supply chain and recently announced a price increase in the US, to mitigate the increase in the cost of goods imported into the US.
RELATED ARTICLES
Caesarstone bucks Nasdaq as tariffs boost potential
Behind Caesarstone’s drastic restructuring
Caesarstone to close Sdot Yam plant, 100 layoffs
In the third quarter of 2025, Caesarstone reported $102 million revenue, down from $108 million in the corresponding quarter last year, and said sales volume was affected by weaker demand and competitive pressures.
Net loss was $1.8 million, narrowing from $4.2 million in the corresponding quarter, and adjusted EBITDA was negative at $7.9 million. The company had net cash of $66.7 million at the end of the quarter.
Caesarstone listed on Nasdaq in 2012 and three years later reached a peak market cap of about $2.5 billion. The Tena Fund, led by Ariel Halperin, which focusing on kibbutz industries, had invested in Caesarstone in 2006 and seven years later exited it with a five-fold return on the investment, selling shares for $186 million. The fund returned for another round of investment in the company in 2016, purchasing shares for a total of about $74 million, an amount it is currently losing “on paper” for the most part.
This is also Shiran’s second term as CEO. He managed the company from 2009 to 2016, leading it through the IPO and peak period, and returned to the job in 2023 after a period in which Caesarstone underwent a troubled period including lower financial forecasts, frequent changes in management, and a loss of confidence from investors in the stock. He has led a global streamlining plan, which included the closure of the Sdot Yam plant and now the closure of the Karmiel plant.
Published by Globes, Israel business news – en.globes.co.il – on November 12, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
