Hamat's board has decided to stop its own manufacturing operations in Turkey, about a decade after it opened a sanitary ware plant there through its subsidiary MCP. The decision comes after years of losses at the factory, which worsened by 10% in the first quarter of 2026 to about 3 million shekels.
The company said the unit has been hurt by weak demand from other group subsidiaries, difficulties selling in the Turkish market because of President Recep Tayyip Erdogan's boycott of trade with Israel, and limited success selling outside Israel. Hamat also faces intense competition from cheap imports from the Far East and pressure from the real estate slowdown and lower apartment sales.
The plant is expected to close soon, and most of the workers in Turkey will be dismissed. Hamat estimates severance costs at 1.7 million shekels, and says that once the shutdown is completed, the remaining ongoing expenses tied to this activity should be immaterial.
At the same time, Hamat is considering options for its assets in Turkey, including a sale of the business as a whole, or separate sales of the plant, the land under it, and the machines and equipment. As of March 31, 2026, the machines and equipment were booked at 53.5 million shekels. Hamat expects to record an impairment on part of that equipment, but cannot yet estimate the size; the land and plant, excluding equipment, are carried at about 28.8 million shekels, while an external valuation in December 2025 put them at 97 million shekels.
Hamat said the move affects only sanitary ware production in Turkey and that it will continue operating in the sector by finding alternative manufacturers, which it expects to be cheaper than in-house production and to improve profitability. The company, valued at 570 million shekels, is led by CEO and controlling shareholder Yoav Golan. It ended 2025 with sales of 954 million shekels and net profit of 30 million shekels, after more than 1 billion shekels in revenue in 2022. In the first quarter of 2026, sales fell 7% to 223 million shekels and net profit dropped 32% to 6 million shekels.
