Oklahoma City-LSB Industries Inc. says its El Dorado Chemical Co. subsidiary (EDCC) has signed a five-year agreement with Orica International Pte Ltd. (Orica) to supply Orica with 250,000 tons per year of industrial grade ammonium nitrate. This new agreement replaces EDCC’s previous agreement to supply 210,000 tons per year of AN to Orica USA Inc. Under the agreement, which is effective as of Jan. 1, 2010, EDCC will charge Orica for product on a cost-plus basis. “EDCC is pleased to expand its relationship with Orica after working together since 2001,” said Jack Golsen, LSB chairman and CEO. “We look forward to working with Orica, the worldwide leader in the explosives industry, under the new agreement.” In other news, EDDC has also extended its anhydrous ammonia agreement with Koch Nitrogen International SARL. Koch agrees to supply certain of EDCC’s requirements of ammonia through Dec. 31, 2012. Under its 2009 agreement, EDCC was to be supplied by Koch with 100 percent of the ammonia required by for EDDC’s El Dorado, Ark., chemical processing facility (GM Jan. 5, 2009). That agreement followed a previous sales agreement, dated March 9, 2005, as amended, between EDDC and Koch that was to terminate Dec. 31, 2008.
Transparency Across the Fertilizer Value-Chain