Oklahoma City — LSB Industries Inc. said April 4 that on March 31, 2014, its subsidiary, El Dorado Chemical Co. (EDCC), sent the required one-year prior notice to Orica International Pte Ltd. that EDCC will not renew the exclusive ammonium nitrate supply agreement, dated Jan. 1, 2010, as amended after the initial term ending April 9, 2015. “As a result of the exclusivity provision in our current agreement with Orica, we cannot sell ammonium nitrate produced at our El Dorado, Arkansas, facility into the explosives market,” said Jack Golsen, LSB chairman. “Our strategy was to proactively notice Orica of our intention to let our agreement expire, and beginning in the second quarter of 2015, it is our intention to commence sales of ammonium nitrate to the explosives market. This is a market in which we have historically participated and have significant experience. Orica represented approximately 6 percent of LSB’s consolidated net sales for 2013.” CF Industries Holdings Inc. recently announced that it has entered into long-term AN supply agreements with Orica and Nelson Brothers LLC, under which CF will supply 700,000-800,000 st of product on an annual basis for at least 10 years starting in 2017 (GM Feb. 17, p. 1).
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