Pryor expects to have extra ammonia to sell

Oklahoma City-Pryor Chemical Co., a unit of LSB Industries Inc., which recently began producing anhydrous ammonia again (GM Oct. 18, p. 14), after a fire idled the plant last summer (GM July 5, p. 1), is expected to produce more ammonia than originally projected, the company told analysts Nov. 4. Initial projections were that the Pryor facility would produce 325,000 st/y of UAN, with an excess 35,000 st/y of ammonia to sell. LSB now believes that, based on its current run rate, the Pryor plant will be good for 60,000-90,000 st/y of excess ammonia, not 35,000 st/y, an uptick that could add several million dollars to Pryor’s bottom line. In the meantime, LSB is enjoying even more ammonia production as it still awaits full production of Pryor’s UAN to be achieved. LSB is working toward that goal and expects to make an official announcement once it is achieved. Koch Nitrogen Co. will be marketing the UAN. Once this round of production is achieved and making a profit, LSB can then decide whether to bring up other long-idled units at Pryor. “We want to make a profit on this plant, show what it can do, and have some history with it before we attempt to activate the rest of them,” said Barry Golsen, LSB vice chairman, president, and chief operating officer. In other news, LSB reported that it has concluded a three-year labor contract with a second union at its El Dorado, Ark., nitrogen plant. A deal was struck with one union earlier this year (GM Aug. 16, p. 15). LSB also said it has reached an agreement with the union at its Cherokee, Ala., facility, though it was still subject to union confirmation.