Pryor Chemical begins ammonia production

Oklahoma City-LSB Industries Inc. said Jan. 19 that production of anhydrous ammonia, the initial feedstock for the production of UAN, began at its Pryor Chemical Co. this month, but that the production of UAN from the ammonia feedstock has not yet started. Production rates of ammonia are currently below targeted annual rates. When in full production, Pryor Chemical expects to produce and sell approximately 325,000 tons of UAN and approximately 35,000 tons of ammonia annually. LSB also reported that since there was no significant production at Pryor Chemical in the fourth quarter of 2009, it continued to incur and expense approximately $1.6 million per month in start-up costs, in addition to variable costs such as natural gas and electricity. Those costs are consistent with those incurred during the third quarter of 2009. LSB said that during this start-up phase, management expects production rates to increase to the targeted annualized rates, and that interruptions in production may occur due to issues that often take place in the course of reactivating a once-idle chemical plant. LSB said when production of UAN and ammonia reaches sustained targeted annual rates, it will issue a notice. “Equipment and supplier issues have played a role in the delays at Pryor. Despite these delays, we continue to believe that Pryor Chemical represents a valuable asset for LSB,” said LSB Chairman and CEO Jack Golsen. Koch Nitrogen Co. will market the UAN from the plant.