Pryor plant back up – Alert

LSB Industries Inc. has announced that its Pryor, Okla., chemical facility was fully operational and began producing all products on Jan. 17, 2016. As announced on Dec. 27, 2015, both Pryor’s urea and UAN plants were taken down when the facility’s production of nitric acid (a component of UAN) had to be halted in order to repair a leaking joint in that plant.

LSB also provided an update on the status of the expansion project at its El Dorado, Ark. facility. As previously announced, the new nitric acid plant and concentrator are in production. The 375,000 st/y ammonia plant remains on schedule to be mechanically complete in February of 2016 with ammonia production beginning early in the second quarter of 2016. As of Jan. 10, 2016, the ammonia plant was approximately 93 percent mechanically complete and the cost estimate to complete the EDC expansion remained in the $831 million to $855 million range, as articulated in LSB’s third quarter 2015 earnings press release on Nov. 6, 2015.

Additionally, LSB announced that Michael Foster has been appointed senior vice president, general counsel and secretary, effective Jan. 5, 2016. Foster assumes the role from David Shear, who has resigned to pursue personal interests.

Pryor plant back up – Alert

LSB Industries Inc. reported today that the Pryor, Okla. chemical facility has resumed production of ammonia on Sept. 23, 2015. On Sept. 3, 2015 the company announced that Pryor had been taken out of service for unplanned maintenance in early August as a result of mechanical issues that occurred during restart following the facility’s planned annual turnaround, which took place throughout much of July.

LSB estimates that the periods of downtime at Pryor in August and September will reduce third quarter 2015 sales volumes of UAN and ammonia by a total of approximately 35,000 to 40,000 st and 7,000 to 10,000 st, respectively, while lowering operating income by a total of approximately $9.5 million to $10.0 million, which includes lost profit, unabsorbed overhead expenses and costs of repair.