Kfar Giladi Quarries Wins Tender for Kidarim Quarry for NIS 542 Million
Translated & summarized from Bizportal by baba
Kfar Giladi Quarries has won a tender to operate the Kidarim quarry in the Galilee for approximately NIS 542 million over 24 years. The company, owned by Kibbutz Kfar Giladi and Israel Infrastructure Fund, outbid Shapir Engineering. This acquisition, along with a previous win for the Zanoh quarry, brings the total value of recent bids to about NIS 1.64 billion. The Kidarim quarry holds 40 million tons of reserves and will support infrastructure projects in the north.
The story in 6 lines · by baba
- Kfar Giladi Quarries secured the Kidarim quarry tender for NIS 542 million.
- The 24-year operating rights for the Kidarim quarry were awarded by the Israel Land Authority.
- Kfar Giladi Quarries' bid was 7% higher than competitor Shapir Engineering's offer.
- The Kidarim quarry contains approximately 40 million tons of raw materials.
- This win follows a NIS 1.1 billion tender win for the Zanoh quarry in February 2024.
- The company plans to invest tens of millions in site renovation and technology.
Kfar Giladi Quarries, owned by Kibbutz Kfar Giladi (70%) and Israel Infrastructure Fund (30%), has won a tender from the Israel Land Authority to operate the Kidarim quarry in the Galilee. The winning bid was approximately NIS 542 million, granting the company mining, quarrying, and operational rights for 24 years. This secures a significant long-term source of raw materials for the northern region.
The company competed against Shapir Engineering, which offered approximately NIS 508 million, making Kfar Giladi's winning bid about NIS 35 million, or 7%, higher. The minimum bid for the tender was NIS 214 million.
This is another major win for Kfar Giladi Quarries, following their successful bid of approximately NIS 1.1 billion in February 2024 for the Zanoh quarry near Beit Shemesh. The combined value of these two winning bids reaches about NIS 1.64 billion.
The Kidarim quarry holds reserves of approximately 40 million tons of raw materials, primarily for gravel, concrete, and asphalt production. Kfar Giladi Quarries estimates an annual output of 1.5-2 million tons after initial setup and adjustments. The company plans to invest tens of millions of shekels in site renovation and technology implementation in the initial years. Located near Highway 85, the quarry will supply materials for projects across the Galilee.
This acquisition is also strategic for Kfar Giladi Quarries, ensuring operational continuity in the region as their Amiad quarry is expected to cease operations by the end of 2027, or sooner. The transition will allow them to continue supplying existing clients and potentially expand their operations.
Kfar Giladi Quarries is one of Israel's oldest quarrying companies, with roots dating back to the 1920s. Israel Infrastructure Fund invested in the company three years ago. The win comes amid plans for significant infrastructure investments in the north, including road and rail development, bomb shelter construction, and reconstruction of war-affected communities, which are expected to drive demand for quarry materials.
Eran Shechtman, CEO of Kfar Giladi Quarries, stated, "The win in Kidarim is much more than another deal for us. It expresses our faith in the North, in its development, and in the people who live and work here... Kidarim quarry will allow us to ensure continuity in the supply of raw materials to continue serving the infrastructure and construction projects in the area for many years." The quarry is expected to employ about 20 workers, along with local suppliers and subcontractors.
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