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

Rhea-AI Summary

U.S. Silica Holdings, Inc. (NYSE: SLCA) announced a price increase for most of its non-contracted silica sand, aplite, diatomaceous earth, and clay products, effective June 1, 2022. The price hikes will range from 8% to over 25%, depending on the product and grade. This decision aims to offset significant cost increases in energy, labor, transportation, materials, and manufacturing. U.S. Silica is a leading producer in the performance materials sector, operating 24 mines and production facilities.

Positive

• Price increases of 8% to over 25% could enhance revenue streams.
• Response to rising costs may improve profit margins.

Negative

• Significant reliance on price increases may affect competitiveness.
• Cost pressures from energy, labor, and materials could impact future profitability.

KATY, Texas, April 27, 2022 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today that its Industrial and Specialty Products business will increase prices for most of its non-contracted silica sand, aplite, diatomaceous earth and clay products used primarily in glass, foundry, paints, coatings, elastomers, roofing, chemicals, recreation, building products, agricultural, pet litter and other applications.

Price increases will range from 8% to over 25%, depending on the product and grade, and go into effect for shipments beginning June 1, 2022. 

These price increases are necessary to help offset significant and continuing cost increases in energy, labor, transportation, materials and manufacturing costs.

About U.S. Silica

U.S. Silica Holdings, Inc. is a global performance materials company and is a member of the Russell 2000. The Company is a leading producer of commercial silica used in the oil and gas industry and in a wide range of industrial applications.  Over its 122-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 600 diversified products to customers across our 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 24 mines and production facilities and is headquartered in Katy, Texas.

U.S. Silica Holdings, Inc.

Investor Contact
Patricia Gil
Vice President, Investor Relations
281-505-6011
gil@ussilica.com 

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SOURCE U.S. Silica Holdings, Inc.

FAQ

What percentage price increase did U.S. Silica announce for its products?

U.S. Silica announced price increases ranging from 8% to over 25%.

When do the new prices for U.S. Silica products take effect?

The new prices will be effective for shipments beginning June 1, 2022.

What is the reason for the price increase by U.S. Silica?

The price increase is necessary to offset rising costs in energy, labor, transportation, materials, and manufacturing.

Which products will U.S. Silica increase prices for?

The price increases apply to most non-contracted silica sand, aplite, diatomaceous earth, and clay products.