Kfar Giladi Kibbutz Wins Quarry Tender for Half a Billion Shekels

By נווית זומר

Translated & summarized from Ynet by baba

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Kibbutz Kfar Giladi has won a tender to operate the Qedarim quarry in the Galilee for NIS 542 million, securing mining rights for 24 years. This follows their NIS 1.1 billion purchase of the Zanoah quarry two years prior. The kibbutz plans significant investments in the new site and sees a strong future for infrastructure development in Israel. Kfar Giladi is also involved in the hotel industry, having recently acquired and partially sold stakes in two hotels.

The story in 5 lines · by baba

Kibbutz Kfar Giladi will pay NIS 542 million for the Qedarim quarry in the Galilee.
The tender grants Kfar Giladi quarrying rights for the Qedarim site for 24 years.
This acquisition follows Kfar Giladi's NIS 1.1 billion purchase of the Zanoah quarry.
Kfar Giladi's quarrying company is 70 years old and partially owned by Infrastructure Fund for Israel.
The kibbutz is also active in the hotel sector, owning stakes in two hotels.

Kibbutz Kfar Giladi, recognized as one of Israel's wealthiest kibbutzim and a major player in the quarrying industry, has secured a tender from the Israel Land Authority to operate the Qedarim quarry in the Galilee. The kibbutz will pay NIS 542 million for the rights, which grant it mining, quarrying, and operational authority over the site for 24 years. Kfar Giladi Quarries plans to invest tens of millions of shekels in upgrading the Qedarim site and implementing new technologies. This acquisition follows the kibbutz's purchase of the Zanoah quarry near Beit Shemesh for NIS 1.1 billion approximately two years ago. The kibbutz also operates the Kfar Giladi, Yakir, HaDarom, and Amiad quarries, which produce aggregate, a crucial raw material for the infrastructure sector used in asphalt and concrete production.

The kibbutz's quarrying company, which is 70 years old, previously sold a 30% stake to Infrastructure Fund for Israel (Tash'i) for NIS 280 million three years ago. Eran Shechtman, CEO of the quarries, stated that the coming decade will be defined by infrastructure development. He highlighted the nation's significant challenges in this area, including metro projects, northern and southern reconstruction, the construction of protected spaces, and major transportation initiatives like the extension of Highway 6. Shechtman anticipates that the current slowdown in the construction industry will soon end, emphasizing the essential role of aggregate in these upcoming projects. He noted the rising stock prices of infrastructure companies like Shapir, Solel Boneh, and Ashtrom as evidence of market confidence in this sector.

Beyond its quarrying operations, Kfar Giladi is also active in the hotel industry. About a year ago, it acquired full ownership of the Galiléeon Hotel near Kiryat Shmona for NIS 210 million. Subsequently, it sold a 50% stake in both the Galiléeon and the Kfar Giladi Hotel to Israel Canada Hotels, controlled by the Zalkind brothers, for NIS 142 million.

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