PUBLIC VERSION
manufacturing. When it decided to cease production at its Georgia plant, it incurred a one-time $ 45 – 55 million impairment charge. 105 By August 2024, Caesarstone CEO Yos Shiran explained that after closing two plants( one in the United States and one in Israel),“ we are now sourcing over 60 % of our production from our global network of manufacturing partners,” a move that was aimed at“ driving margin improvements.” 106 In other words, Caesarstone shifted from producing QSP in the United States to importing QSP from overseas facilities because running its U. S. factory had become financially unsustainable for the company.
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As mentioned, the USA Quartz plant in Florida likely folded because it could not achieve a profitable scale due to the global flood of imports of QSP.
While the Cosentino Group(“ Cosentino”) announced in 2023 that it planned to invest $ 270 million in a new manufacturing facility in Jacksonville, Florida, it has yet to break ground on this new facility.
The financial performance of the domestic industry over the POI is directly related to the increased volumes of low-priced imports. As overall apparent consumption for QSP showed large increases over the POI, the domestic industry should have been posting record profits.
3. Significant Unemployment or Underemployment in the Domestic Industry( 19 C. F. R. § 206.14( e)( 1)( iii))
The loss of U. S. market share over the past five years has had a negative effect on the domestic industry’ s employment. A significant number of workers were terminated because of the recent closures of two major U. S. producers. When Caesarstone announced in late 2023 that it was closing its Richmond Hill, Georgia facility, it stated it was eliminating approximately 129 jobs. 107 The closure of the USA Quartz facility in Florida also resulted in the loss of jobs in the domestic industry. As for the QMAA, the alliance reported employing [
] production-related
105 Caesarstone Provides Business Updates( Dec. 13, 2023), attached as Exhibit 11.
106 Earnings call: Caesarstone sees strategic gains amid market slowdown( Aug. 8, 2024), attached as Exhibit 14.
107 WTOC, Caesarstone Technologies announces closure of Richmond Hill Manufacturing Facility
impacting over 100 employees( Dec. 18, 2023), attached as Exhibit 10; Caesarstone Provides Business Updates( Dec. 13, 2023), attached as Exhibit 11.
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