El Dorado costs up again – Alert

LSB Industries Inc. has again moved up its cost projections for its major expansion at the El Dorado, Ark., complex. LSB now says cost will be $660-$680 million, up from the July 14 estimate of $560-$575 million. LSB attributes the increase to the work performed by a previous subcontractor. LSB has also pushed back the production date of the 375,000 st/y ammonia plant to second-quarter 2016 from first-quarter 2016. As it relates to the new nitric acid plant and concentrator, the concentrator went into production in June 2015 and the nitric acid plant is expected to be mechanically complete in September 2015, with production beginning mid-fourth quarter 2015.