Kusto Group division continues rapid expansion with new Ashkelon factory

Israel paint manufacturer Tambour will invest NIS 100 million in new manufacturing facility in the southern city of Ashkelon.  

Tambour, the largest paint manufacturer in Israel, has begun construction on a new factory in Ashkelon. The company will invest NIS 80-100 million in building the new facility which will cover 16 dunams (16,000 square meters) and is expected to employ 50 workers.

 

Kusto Group, which owns Tambour, continues to expand its investments in the company and building materials sector in Israel and across the globe in an effort to transform Tambour into a successful multinational company.

 

The manufacturing plant in Ashkelon will concentrate on the production of plaster and plaster related building materials. While Tambour is best known for its manufacturing of high-quality paint for the home, nearly half of its production is in other building materials from gypsum boards and plaster powders to cement. Tambour currently operates six factories across Israel. 

 

The new facility, which is expected to be finished next year, will be built on land leased from the Israel Land Authority (ILA), the government agency responsible for managing all public land. The Ashkelon plant will be fully funded by the company without state grants, even though it is located within the ‘Ashkelon development zone’ (making it eligible for state subsidies) because at this stage the company does not intend to export its products.

 

The new manufacturing facility represents part of Tambour’s recent accelerated efforts to expand its product offerings to the domestic and international market. Tambour recently acquired the balance of Kibbutz Gesher’s holdings in its plaster manufacturing plant, Gesher Gypsum LTD, for NIS 16.5 million making it the sole shareholder in the company. The Gesher plant is one of the largest manufacturers of construction products in Israel.

 

Kusto Group: Robust International Portfolio

Kusto Group is a Singapore-based, diverse multinational corporation which operates in natural resources and energy, construction and building materials, agricultural and real estate sectors. Kusto purchased Tambour five years ago from the Azrieli Group for NIS 500 million after competing in a bidding war with the Israeli investment fund Apax Partners.

 

After the acquisition of Tambour, Kusto Group appointed one of its partners, Max Streib, to relocate to Israel and oversee the company’s transition. Streb was recently replaced as Tambour’s CEO by Israeli Micha Sharir, who formerly served as Tambour’s CFO.

 

Kusto Group specializes in the investment in and operation of multinational industrial companies. Under the leadership of founder and chairman Yerkin Tatishev, the growing company currently operates in 11 countries across Europe and Asia. The pillar of the company’s portfolio is its oil and gas division, KazPetrol, located in Kazakhstan. Kusto Group’s agricultural divisions, KustoAgro and KazBeef, operate in Kazakhstan and Ukraine and produce ag products for both local and international markets. 

 

The company also invests in real estate and development projects in several countries across Europe and Asia. In Vietnam, Kusto Group has established itself as a regional leader in construction, building materials and real estate development. The company attributes its global success to its adherence to a set of core values and its entrepreneurial roots.

 

The acquisition of Tambour has been integral to the expansion of Kusto Groups’ construction materials division. With over 80 years of experience and a reputation for high-quality products, Tambour products are exported and sold in more than twenty countries across the Mediterranean region, Europe, Africa, South East Asia and the Americas. Their innovative and environmentally sustainable production methods make Tambour a leader in the industry. According to Tatishev, “Just as Kusto Group is symbolic of Kazakh entrepreneurialism, Tambour represents Israeli creativity and excellence.” 

 

Kusto Group has continued to expand its investment in Tambour in order to broaden its operations globally. According to the company’s website, “Kusto has seized the opportunity to take a much-loved local brand and position it on the world stage, turning it into a global champion.” 

 

As part of this effort to transform Tambour into a multinational brand, in 2018, the company purchased the Italian color company Colorificio Zetagi, the company responsible for painting the Juventus football stadium in Turin, for €7 million. Colorificio Zetagi is currently valued at €15 million and has 56 employees. The purchase of the Italian company represents Tambour’s first acquisition outside of Israel.  Zetagi specializes in manufacturing oil, gas and woodwork products, opening new opportunities for Tambour to extend its product lineup.  

 

Tambour’s superior products, manufacturing techniques, geographic location, and history make it a prominent asset to Kusto Group’s global holdings. The company’s recent acquisitions and the construction of the new Ashkelon factory indicate a bright future for the Israeli paint company.