U.S. Silica Announces Price Increases on Industrial and Specialty Products

Rhea-AI Summary

U.S. Silica Holdings (NYSE: SLCA) announced a price increase of up to 15% for its noncontracted industrial and specialty products, effective May 1, 2021. The increase affects products such as diatomaceous earth, perlite, cellulose, silica, and clay, used in various applications including filtration and coatings. This decision is attributed to significant inflationary pressures from raw materials, packaging, logistics, and maintenance costs.

Positive

• Price increase of up to 15% could enhance revenue per unit sold.
• Adjustment reflects the company's ability to pass inflation costs onto consumers.

Negative

• Ongoing inflationary pressures may affect profit margins despite price increases.
• Possible customer resistance to price hikes could impact sales volume.

KATY, Texas, March 30, 2021 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) said today that its Industrial and Specialty Products segment will increase prices for its noncontracted diatomaceous earth, perlite, cellulose, silica and clay products used primarily in filtration, paints, coatings, elastomers, chemicals, glass, building products and other applications.

The price increases, effective for shipments starting on May 1, 2021, will range up to 15 percent depending on the product and grade.

These increases are driven by ongoing and significant inflationary pressures from raw materials, packaging, logistics and maintenance expenses.

About U.S. Silica

U.S. Silica Holdings, Inc. is a global performance materials company and last-mile logistics provider and is a member of the Russell 2000 Index. The Company is a leading producer of commercial silica used in a wide range of industrial applications and in the oil and gas industry. Over its 121-year history, U.S. Silica has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 400 diversified product types to customers across its multiple end markets. U.S. Silica's wholly owned subsidiaries include EP Minerals and SandBox Logistics™. EP Minerals is an industry leader in the production of products derived from diatomaceous earth, perlite, engineered clays, and non-activated clays. SandBox Logistics™ is a state-of-the-art leader in proppant storage, handling and well-site delivery, dedicated to making proppant logistics cleaner, safer and more efficient. The Company currently operates 23 mines and production facilities and is headquartered in Katy, Texas.

U.S. Silica Holdings, Inc.

Investor Contact
Donald A. Merril
Executive Vice President and Chief Financial Officer (301) 682 - 0302
merril@ussilica.com

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SOURCE U.S. Silica Holdings, Inc.

FAQ

What is the significance of U.S. Silica's price increase on May 1, 2021?

The price increase of up to 15% helps the company manage rising costs due to inflation.

What products are affected by U.S. Silica's price hike?

Products affected include diatomaceous earth, perlite, cellulose, silica, and clay.

Why is U.S. Silica increasing prices for their products?

The company cites significant inflationary pressures from raw materials, packaging, and logistics as the reason for the increases.

How will the price changes impact U.S. Silica's revenue?

The price increase could potentially enhance revenue per unit sold, but may also face customer resistance.