LSB Industries LXU today announced that its
chemical business' El Dorado, Arkansas facility (“El Dorado Facility”) has
signed an agreement with Weatherly Inc. for the licensing, engineering, and
procurement of major manufacturing equipment for a new 1,100 ton per day 65%
strength nitric acid plant. The new plant is expected to be operational by
mid-2015.
In addition, the Company is currently negotiating a contract for the purchase
of a plant to work in conjunction with the new nitric acid plant that further
concentrates a portion of the output up to 98.5% strength.
The cost of the new nitric acid plant, the nitric acid concentrator plant and
supporting facilities, including construction, is anticipated to total
approximately $120 million, a significant portion of which is expected to be
paid from insurance proceeds resulting from the May 15, 2012 event that
damaged the El Dorado Facility. The amount of insurance proceeds is not known
at this time.
The Company also announced today the recommencement of operations at the El
Dorado Facility's sulfuric acid plant. This represents the final phase of
repair and production recovery at the facility following the May 15, 2012
event, other than the construction of the aforementioned new nitric acid plant
and acid concentrator plant.
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