Covia Idles Several Operations; Reduces Capacity at Others

Covia has reduced proppant capacity by 3.3 million tons in response to changes in market demand. The company is idling operations at its Shakopee, Minn.; Brewer, Mo.; Wexford, Mich.; and Cutler, Ill., facilities; as well as a reduction in effective capacity at its Pevely, Mo.; Cleburne, Texas; and Menomonie, Wis., facilities.

Jenniffer Deckard, president and chief executive officer, said, “The idling of these facilities is a difficult, but necessary step, and we regret the impact that this has had on our people, their families and the local communities. However, as conditions within the proppant market remain dynamic, we are responding to ensure that Covia maintains its leading cost position. At the same time, we remain focused on integration and synergy realization, deleveraging our balance sheet, and executing on our strategic initiatives in both our Industrial and Energy segments, including the ramp up of 8 million tons of local capacity in the Permian and MidCon.”

Following these operational changes and the commissioning of the Seiling, Okla., plant, the company expects to have annual energy production capacity of approximately 32 million tons. The announced changes are not expected to impact Covia’s 18 million tons of industrial production capacity.

Related posts