Caesarstone to build U.S. plant

Words: Margaret FosterCaesarstone Ltd. will open a U.S. production facility in 2014 as part of its strategic plan to increase manufacturing of its signature quartz surfaces. The $75 million facility, at a yet-to-be-determined location, will eventually house two production lines for Caesarstone products.

The U.S. facility, at full build-out, would expand the company’s current production by 50 percent. The first stage, installing one production line and infrastructure to add a second, will cost about $45 million. Company officials noted the first line would be in production by late-2013, with the second production line to be added to meet future demand.

"We believe that expanding our manufacturing footprint into the United States will provide us with a number of competitive and strategic benefits that will serve our long-term growth plans, most significantly the related improvement in delivery times,” says Yosef Shiran, Caesarstone CEO.

The company also announced additional manufacturing equipment that will be installed at its Israel plant, incorporating a major part of a fifth production line. Total production capacity will be increased by about 15 percent; the $13 million project is slated for completion next October.

“Our expansion in Israel will enable us to rapidly and efficiently expand our production capacity to meet the increasing demand for our products,” Shiran says. “We are excited about both of these projects, which are further steps in realizing our growth strategy and are expected to create value for our shareholders.”

Caesarstone announced record quarterly revenue of $77.6 million worldwide from July to September this year, up from $74.2 million in 2011. Much of that push came from North American activity, with year-to-year, third-quarter revenues increasing in the United States and Canada by 17.7 percent and 29.1 percent, respectively. Overall GAAP net income in this year’s third quarter came to $12.4 million, up 22.8 percent from the same time last year.
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