Select Sands Corp. announced that it has placed 26 employees at its Arkansas operations on temporary furlough until further notice. This necessary step results from the current industry-wide market disruption, which has impacted demand for Select Sands’ Northern White frac sand. Shipments and limited production continue, while the company continues to pursue additional opportunities.
Zig Vitols, president and CEO, stated, “The recent disruption in the industry has required us to take these necessary steps to manage our business successfully while minimizing the impact to resume improvements when frac sand demand strengthens. We have been proud employers of a qualified workforce in our area and look forward to bringing our full team back on board as soon as possible.”
Select Sands is not the only company seeing reductions.
Preferred Sands announced a reduction of personnel at its Genoa, Neb., facility, according to company representative Matt Goldstein. “While this strategic decision was made in part due to changing market conditions and a downturn in demand for regional frac sand, it is also a necessary step in our continued national in-basin strategy aimed at reducing costs and developing more facilities closer to the end user. We remain committed to being the most dependable, lowest cost-landed-at-well provider of frac sand for our customers in the areas in which we operate,” he said.
Previously, Covia announced it 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.
Hi-Crush Partners has temporarily idled dry plant operations at its Whitehall, Wis., facility. The facility’s wet plant remains operational.