Covia Idles Operations at Four Frac Sand Mine Locations



Covia Holdings Corporation, an Ohio-based sand producer, is reducing its proppant capacity by 3.3 million tons citing ‘market demands,’ the company announced Sept. 26.

As a result, Covia will idle operations at four facilities: Shakopee, Minnesota; Brewer, Missouri; Wexford, Michigan; and Cutler, Illinois. Additionally, the company will reduce effective capacity at three facilities: Pevely, Missouri; Cleburne, Texas; and Menomonie, Wisconsin.  

Proppant sand is used in hydraulic fracturing.

“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,” Covia CEO Jenniffer Deckard said in a company statement. “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 eight million tons of local capacity in the Permian and MidCon.”

Covia was formed in June as a result of a merger between Unimin and Fairmount Santrol.   



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.