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

Rhea-AI Summary

U.S. Silica Holdings (NYSE: SLCA) announced on April 18, 2023, a price increase for most non-contracted products in its Industrial and Specialty Products segment, effective June 1, 2023. The increases, which will range up to 20% depending on the product and grade, are necessary to offset ongoing cost pressures including labor, transportation, materials, and manufacturing. U.S. Silica, a leader in producing silica for various industrial applications, aims to maintain its market position amidst rising costs.

Positive

• Effective price increases of up to 20% for non-contracted products to offset rising costs.
• U.S. Silica's diverse product range serves multiple industries, enhancing revenue potential.

Negative

• Price increases may lead to decreased demand for products if customers seek alternatives.
• Rising costs can continue to pressure profit margins despite price adjustments.

KATY, Texas, April 18, 2023 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today that its Industrial and Specialty Products segment will increase prices for most of its non-contracted products used primarily in glass, filtration, foundry, paints, coatings, elastomers, roofing, chemicals, recreation, building products and other applications.

Price increases will range up to 20% depending on the product and grade and go into effect for shipments beginning June 1, 2023. 

These price increases are necessary to help offset significant and continuing cost increases in 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 123-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 has 27 operating mines and processing facilities and two additional exploration stage properties across the United States and is headquartered in Katy, Texas.

U.S. Silica Holdings, Inc.

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

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SOURCE U.S. Silica Holdings, Inc.

FAQ

What is the reason for U.S. Silica's price increase announced on April 18, 2023?

U.S. Silica is raising prices to offset significant increases in labor, transportation, materials, and manufacturing costs.

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

The price increases will take effect for shipments beginning June 1, 2023.

How much will prices increase for U.S. Silica's non-contracted products?

Prices for non-contracted products will increase by up to 20%, depending on the product and grade.

Which products are affected by U.S. Silica's price increase?

The price increase affects most non-contracted products used in glass, filtration, foundry, paints, coatings, and other applications.