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 its non-contracted silica sand, diatomaceous earth, and clay products, effective September 1, 2021. The hikes will range up to 15 percent, necessitated by rising costs in energy, transportation, materials, and manufacturing. This adjustment aims to maintain profitability amid escalating operational expenses in various sectors including glass, foundry, and agriculture.

Positive

• Price increases of up to 15% could enhance revenue.
• Necessary adjustments reflect proactive management of rising operational costs.

Negative

• Price hikes may lead to reduced demand from price-sensitive customers.
• Increased costs in energy and materials highlight operational vulnerabilities.

KATY, Texas, July 19, 2021 /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, 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 up to 15 percent, depending on the product and grade, and go into effect for shipments beginning September 1, 2021. 

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

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 24 mines and production facilities and is headquartered in Katy, Texas.

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 price increase has U.S. Silica announced for its products?

U.S. Silica announced a price increase of up to 15% for most non-contracted silica sand, diatomaceous earth, and clay products.

When will the price increases for U.S. Silica products take effect?

The price increases will take effect for shipments beginning September 1, 2021.

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

The price increases are necessary to offset significant cost increases in energy, transportation, materials, and manufacturing.

Which sectors will be affected by the price increases from U.S. Silica?

The increases will affect various sectors including glass, foundry, paints, coatings, elastomers, and agriculture.