Caesarstone provides update on closure of its Georgia manufacturing facility

Caesarstone provided an update on the closure of its manufacturing facility located in Richmond Hill, Georgia and an update on the Australian market. Consistent with the company’s restructuring plan initiated in mid-2023, the company announced the closure of its Richmond Hill manufacturing facility, effective mid-January 2024. This decision is expected to contribute savings of approximately $20M annually by optimizing its manufacturing footprint. In connection with the facility closure, the company expects to incur restructuring expenses and a one-time non-cash impairment charge totaling $45M to $55M during the fourth quarter of 2023. The company estimates total cash costs will be in the amount of $3Mto $5M related to operations, through 2024. Caesarstone expects annualized cash savings of approximately $20M with the effect commencing during 2024, in addition to exploring opportunities to monetize the asset in the future. The estimates of the impairment and expenditures that the Company expects to incur in connection with the closure, and the timing thereof, are subject to a number of assumptions and actual amounts may differ materially from estimates.