Hi-Crush Partners has temporarily idled dry plant operations at its Whitehall, Wis., facility. The facility’s wet plant remains operational, and Hi-Crush continues to sell inventory from on-site storage to meet ongoing Northern White customer demand. Wet and dry plants remain operational at Hi-Crush’s other Wisconsin mines, including Wyeville, Augusta and Blair.
“Our strategic decision to temporarily idle Whitehall’s dry plant was driven by recent, temporary softness in completions activity and frac sand demand,” said Laura C. Fulton, chief financial officer of Hi-Crush. “This reduced level of expected activity is reflected in our updated guidance for sales volumes of 2.8 million to 3.0 million tons for the third quarter we previously communicated. Our Kermit facility continues to run above its nameplate capacity and we anticipate strong demand for Northern White and our in-basin Permian sand in 2019 and beyond.”
“The flexibility of our operations position us to respond timely and efficiently to evolving industry dynamics, supporting our ability to best align operations with customer demand,” said Robert E. Rasmus, chief executive officer of Hi-Crush. “Hi-Crush is committed to providing the supply surety that our customers require, while we work with all interested parties to minimize impacts and improve cost competitiveness through the optimization of our production operations. Despite temporary market dislocations, we continue to expect strong demand for Northern White frac sand and are continuing with the expansion of rail capacity at Whitehall, as well as our customer-driven expansion of our Wyeville plant and the construction of the second Kermit facility.”