OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 16, 2016--
LSB Industries, Inc. (NYSE:LXU) (“LSB or the Company”) today announced
that the new 375,000 ton ammonia plant at its El Dorado, Arkansas
facility (“El Dorado”) is now mechanically complete. The Company defines
mechanical completion as it relates to the El Dorado ammonia plant as
having concluded the installation of process vessels and rotating
equipment, including associated piping and valves. Additionally, utility
equipment systems such as cooling water, steam generation, raw water
treatment, and air systems, along with related piping, have been
installed.
Currently, all that remains to fully complete construction activities at
the El Dorado ammonia plant is the connection of the electronic
instrumentation wiring to the field instruments, along with the painting
and insulation of the piping and process vessels, and the final grading
and concrete containment for proper drainage of the process area.
As of January 31, 2016, LSB’s investment in its El Dorado Expansion
Project (“EDC expansion project”), which along with the ammonia plant,
includes the construction of a new nitric acid plant and concentrator
that was completed in 2015, totaled approximately $730 million. The
Company expects the remaining expenditures necessary to complete the
pre-commissioning and commissioning of the ammonia plant and to put it
into production to be in the range of $101 million to $125 million.
Pre-commissioning will involve the flushing of any materials from the
piping throughout the plant, in addition to the installation of the
process catalyst inside the reactor vessels. The commissioning phase
will entail the activation and filling of the utility systems, reduction
of process catalyst, and final testing of process control systems.
“Mechanical completion represents one of the final critical phases in
our EDC expansion project,” stated Daniel Greenwell, LSB’s Chief
Executive Officer. “We were able to achieve mechanical completion in the
timeframe that we outlined in September of last year, and we continue to
expect ammonia production at El Dorado to begin early in the second
quarter of 2016. We also expect that the cost of the project will not
exceed the budget of $831 million - $855 million that we have previously
disclosed. We believe that the ammonia plant will significantly enhance
the financial performance of the El Dorado Facility and have a positive
economic impact to LSB’s overall performance. We look forward to sharing
these results with our shareholders in the upcoming quarters.”
About LSB Industries, Inc.
LSB is a manufacturing company. LSB’s principal business activities
consist of the manufacture and sale of chemical products for the
agricultural, mining, and industrial markets, and the manufacture and
sale of commercial and residential climate control products, such as
water source and geothermal heat pumps, hydronic fan coils, modular
chillers, large custom air handlers and make-up air units.
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally are identified by use of the
words “will”, “believes”, “expects”, “estimates”, “intends”,
“anticipates”, “plans to”, “should”, “estimates”, “projects”, or similar
expressions, including, without limitation, the expected completion
date, construction activities, timing of commencement of ammonia
production, cost estimate and financial contribution of the El Dorado
expansion project; and the various factors described in the “Special
Note Regarding Forward-Looking Statements,” and the “Risk Factors”
contained in our 10-K for the year ended December 31, 2014, and our 10-Q
Reports and other filings with the U.S. Securities and Exchange
Commission. These forward looking statements speak only as of the date
of this press release, and LSB expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
LSB’s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160216005598/en/
Source: LSB Industries, Inc.
LSB Industries, Inc.
Mark Behrman, 405-235-4546
Chief
Financial Officer
or
Investor Relations:
The
Equity Group Inc.
Fred Buonocore, 212-836-9607
or
Linda
Latman, 212-836-9609
