LSB INDUSTRIES REPORTS ON UNPLANNED MAINTENANCE AT ITS PRYOR FACILITY
Oklahoma City, Oklahoma – June 16, 2011 - LSB Industries, Inc. ("LSB"), (NYSE: LXU) today announced that its Pryor, OK Facility ("Pryor Facility") was shut down on May 30, 2011 for unplanned maintenance. A 6,500 HP compressor motor in the anhydrous ammonia plant at the Pryor Facility was removed, repaired and returned to service and ammonia production resumed on June 12, 2011. Maintenance was also required to correct issues with the nitric acid plant, which is scheduled to return to service on or about June 21, 2011, at which time, the production of urea ammonium nitrate ("UAN") will resume. The Company plans to announce when UAN production has returned to service.
The Company estimates, at this time, that as a result of the lost production, approximately 20,000 tons less UAN will be produced in the second quarter than otherwise expected.
Commenting, Jack Golsen, the Company's CEO, stated that this type of unplanned maintenance event is not unusual in the operation of large process chemical plants and is normally built into expected practical capacity. However, the Pryor Facility is relatively new in terms of operating history, and as a result we felt it important to disclose the event. As previously disclosed, the Pryor Facility is scheduled for its regular planned major maintenance "Turnaround" activity in the third quarter 2011. We are pleased with the results of the Pryor Facility and are optimistic about its future.
LSB is a manufacturing, marketing and engineering company. LSB’s principal business activities consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils, large custom air handlers and modular geothermal chillers; the manufacture and sale of chemical products for the industrial, mining and agricultural markets; and the provision of specialized engineering services and other activities.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements generally are identifiable by use of the words "believe," "expects," "intends," "anticipates," "plans to," "estimates," "projects" or similar expressions, and such forward-looking statements including, but are not limited to: when the nitric acid plant at the Pryor Facility is scheduled to return to service, we are optimistic about the future of the Pryor Facility and lost production at the Pryor Facility. Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risk and uncertainties and that actual results may differ materially from the forward-looking statements as a result of various factors, including, but not limited to, equipment failure, weather conditions, ability to repair or install necessary equipment at the Pryor Facility and the demand for the chemical products produced at the Pryor Facility.
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