LSB Industries Inc. said today its El Dorado Chemical Co. subsidiary’s facility in El Dorado, Ark., suffered significant damage to its DSN concentrated nitric acid plant and surrounding equipment early this morning when a reactor at that plant exploded.
The company said none of its employees or anyone in the El Dorado community was injured, and the company believes there was no environmental release. It said it is determining the cause of the event and the extent of the damages. The company does not have an estimate on the extent of the damages or the repair time, but at this time the El Dorado facility is out of operation due to the damage, and it is unknown at this time how long the El Dorado facility will be out of production.
LSB has notified its insurer of this event. The company’s insurance policy, which provides replacement cost coverage, has a $1 million deductible for property damage. The company’s business interruption insurance covering certain lost profits and extra expense has a 30 day waiting period. The company said it will issue further communication about this event as warranted.