Dallas-based Stevens Tanker Division has notified the state of Texas it will cease operations by October 15.
The closure will permanently affect 586 jobs across Texas, according to a notice sent to the Texas Workforce Commission.
The tanker division, part of Dallas-based Stevens Transport, serves oil and gas drilling operations in Louisiana, New Mexico, Oklahoma and Texas. The company was involved in the transport of water and frac sand used for drilling.
Officials at Stevens Tanker Division told employees market volatility and a reduction in frac sand orders were the reasons for closing.
“The final decision to close was the result of unforeseen business developments over which Stevens Tanker Division had no control, including a 65% reduction in sand orders starting on September 20, 2019 and the continual loss of production water due to customers’ increased use of piping,” wrote Stevens Tanker executive vice president Scott Mellman in a letter sent to employees on September 27.
“It is with deep regret that I must notify you that Stevens Tanker Division will cease all operations on October 15, 2019. This will be a permanent closure of all Stevens Tanker Division business at all locations and in all divisions,” Mellman said in the letter.
The closure affects Stevens Tanker Division’s nine job sites across Texas, including 71 jobs at its headquarters in Dallas.
The Stevens Tanker Division job site in Stockdale, Texas, will be the largest facility to close, with 367 employees losing their jobs. Stockdale is located in South Texas in the Eagle Ford shale region.
Other Stevens Tanker facilities closing in towns across Texas included Asherton (6 employees), Bridgeport (16 employees), Bryan (24 employees), Cresson (40 employees), Dilley (10 employees) Pleasanton (44 employees) and Waelder (8 employees).
Stevens is one of the largest trucking companies in the U.S., with nearly 2000 trucks, primarily focused on reefer truckload.