U.S. Silica Announces Major Expansions to Supply Chain and Logistics Network

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Feb 11, 2014, 09:00 ET

FREDERICK, Md., Feb. 11, 2014 /PRNewswire/ -- U.S. Silica Holdings, Inc. (NYSE: SLCA) announced today that the Company has entered into an agreement with Union Pacific Railroad (UP) to build a new, unit train capable silica sand storage facility in Odessa, Texas. In addition, the Company has completed modifications to its resin-coated sand facility in Rochelle, Illinois. These changes now enable the plant to ship raw sand to multiple destinations across the country. The plant will continue to produce resin coated sand for the oil and gas and foundry industries.

U.S. Silica and Union Pacific Distribution Services, a subsidiary of Union Pacific Railroad, plan to develop a 20,000-ton frac sand storage facility, which is expected to be operational by the end of 2014. U.S. Silica's investment in this state-of-the-art, world class loading facility is approximately $12 million.

Bryan Shinn, U.S. Silica president and chief executive officer said the Company is "very excited to have the opportunity to work closely with Union Pacific to bolster our transload network and get our customers even closer to the wellhead in the Permian, which is one of the fastest growing shale basins in the country."

Brad Thrasher, VP and General Manager of Industrial Products at Union Pacific said, "We are excited at the potential opportunities that will arise from the Odessa Transload facility. This will serve as a great outlet for continued growth in the Permian Basin."

The modifications simply enable the facility to function, in part, as a transload as well as being unit train capable. The first unit train was shipped from Rochelle last month. Mike Winkler, U.S. Silica vice president and chief operating officer said, "Rochelle gives us a tremendous amount of flexibility to move material cost effectively to all of the major shale basins in the country while at the same time optimizing the utilization of this very important asset."

About U.S. Silica

U.S. Silica Holdings, Inc., a member of the Russell 2000, is one of the largest domestic producers of commercial silica, a specialized mineral that is a critical input into the oil and gas proppants end market. The company also processes ground and unground silica sand for a variety of industrial and specialty products end markets such as glass, fiberglass, foundry molds, municipal filtration and recreational uses. During its 100-plus year history, U.S. Silica Holdings, Inc. has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 250 products to customers across these end markets. U.S. Silica Holdings, Inc. is headquartered in Frederick, Md.

U.S. Silica Holdings, Inc. Contacts

Media Inquiries:
Alison Holder
Manager of Corporate Communications
301-682-0326
[email protected]

Investor Relations Inquiries:
Michael Lawson
Director of Investor Relations and Corporate Communications
301-682-0304
[email protected]

SOURCE U.S. Silica