UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                  SCHEDULE 13D
                                 Amendment No. 3
                    Under the Securities Exchange Act of 1934


                              LSB Industries, Inc.
                                (Name of Issuer)


                        Common Stock, Par Value $.10 Per
                                      Share
                         (Title of Class of Securities)


                                    502160104
                                 (CUSIP Number)


             Nelson Obus, Wynnefield Partners Small Cap Value, L.P.
      One Penn Plaza, Suite 4720, New York, New York 10119, (212) 760-0814
                                       and
                               Jesse R. Meer, Esq.
                        Berlack, Israels & Liberman LLP,
           120 West 45th Street, New York, N.Y. 10036, (212) 704-0100
          (Name, Address and Telephone Number of Persons Authorized to
                      Receive Notices and Communications)


                                   May 6, 1999
             (Date of Event which Requires Filing of this Statement)


If the filing person has previously  filed a statement on Schedule 13G to report
the  acquisition  which is the subject of this  Schedule 13D, and is filing this
schedule because of Rule 13d-I(b)(3) or (4), check the following box |_|.


Check the following box if a fee is being paid with the statement |_|. (A fee is
not required only if the reporting  person (1) has a previous  statement on file
reporting  beneficial  ownership  of more  than  five  percent  of the  class of
securities  described  in Item 1;  and (2) has  filed  no  amendment  subsequent
thereto reporting  beneficial  ownership of five percent or less of such class.)
(See Rule 13d-7.)


                               (Page 1 of 8 Pages)



                         Amendment No. 3 to SCHEDULE 13D

- -------------------------                                    -------------------
CUSIP No.  502160104                                           Page 2 of 8 Pages
- -------------------------                                    -------------------

- --------------------------------------------------------------------------------
1     NAME OF REPORTING PERSON:       Wynnefield Partners Small Cap Value, L. P.
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:              13-3688497


- --------------------------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                  (a) |x|
                                                                        (b) |_|


- --------------------------------------------------------------------------------
3     SEC USE ONLY


- --------------------------------------------------------------------------------
4     SOURCE OF FUNDS

                                        WC
- --------------------------------------------------------------------------------
5     CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
      (2)(d) or (e) |_|


- --------------------------------------------------------------------------------
6     CITIZENSHIP OR PLACE OR ORGANIZATION

              Delaware
- --------------------------------------------------------------------------------
  NUMBER OF                  7  SOLE VOTING POWER
   SHARES
BENEFICIALLY                                              235,620
  OWNED BY                ------------------------------------------------------
    EACH                     8  SHARED VOTING POWER                        
 REPORTING                                                                 
   PERSON                                                   None           
    WITH                  ------------------------------------------------------
                             9  SOLE DISPOSITIVE POWER   
                  
                                                          235,620          
                          ------------------------------------------------------
                            10  SHARED DISPOSITIVE POWER   
                
                                                             None          
- --------------------------------------------------------------------------------
11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

      235,620  shares
- --------------------------------------------------------------------------------
12    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES  |_|


- --------------------------------------------------------------------------------
13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

      2
- --------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON

                                       PN
- --------------------------------------------------------------------------------

                               (Page 2 of 8 Pages)




                         Amendment No. 3 to SCHEDULE 13D

- -------------------------                                    -------------------
CUSIP No.  502160104                                           Page 3 of 8 Pages
- -------------------------                                    -------------------

- --------------------------------------------------------------------------------
1     NAME OF REPORTING PERSON:               Wynnefield Small Cap Value, L.P. I
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:              13-3953291


- --------------------------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                  (a) |x|
                                                                        (b) |_|


- --------------------------------------------------------------------------------
3     SEC USE ONLY


- --------------------------------------------------------------------------------
4     SOURCE OF FUNDS

                                        WC
- --------------------------------------------------------------------------------
5     CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
      (2)(d) or (e) |_|


- --------------------------------------------------------------------------------
6     CITIZENSHIP OR PLACE OR ORGANIZATION

              Cayman Islands
- --------------------------------------------------------------------------------
  NUMBER OF                  7  SOLE VOTING POWER
   SHARES
BENEFICIALLY                                              204,680
  OWNED BY                ------------------------------------------------------
    EACH                     8  SHARED VOTING POWER                        
 REPORTING                                                                 
   PERSON                                                   None           
    WITH                  ------------------------------------------------------
                             9  SOLE DISPOSITIVE POWER   
                  
                                                          204,680
                          ------------------------------------------------------
                            10  SHARED DISPOSITIVE POWER   
                
                                                             None          
- --------------------------------------------------------------------------------
11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

      204,680  shares
- --------------------------------------------------------------------------------
12    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES  |_|


- --------------------------------------------------------------------------------
13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

      1.7
- --------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON

                                       PN
- --------------------------------------------------------------------------------

                               (Page 3 of 8 Pages)


                         Amendment No. 3 to SCHEDULE 13D

- -------------------------                                    -------------------
CUSIP No.  502160104                                           Page 4 of 8 Pages
- -------------------------                                    -------------------

- --------------------------------------------------------------------------------
1     NAME OF REPORTING PERSON:   Wynnefield Small Cap Value Offshore Fund, Ltd.
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:          Not Applicable


- --------------------------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                  (a) |x|
                                                                        (b) |_|


- --------------------------------------------------------------------------------
3     SEC USE ONLY


- --------------------------------------------------------------------------------
4     SOURCE OF FUNDS

                                        WC
- --------------------------------------------------------------------------------
5     CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
      (2)(d) or (e) |_|


- --------------------------------------------------------------------------------
6     CITIZENSHIP OR PLACE OR ORGANIZATION

              Cayman Islands
- --------------------------------------------------------------------------------
  NUMBER OF                  7  SOLE VOTING POWER
   SHARES
BENEFICIALLY                                              83,900
  OWNED BY                ------------------------------------------------------
    EACH                     8  SHARED VOTING POWER                        
 REPORTING                                                                 
   PERSON                                                   None           
    WITH                  ------------------------------------------------------
                             9  SOLE DISPOSITIVE POWER   
                  
                                                          83,900
                          ------------------------------------------------------
                            10  SHARED DISPOSITIVE POWER   
                
                                                             None          
- --------------------------------------------------------------------------------
11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

      83,900  shares
- --------------------------------------------------------------------------------
12    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES  |_|


- --------------------------------------------------------------------------------
13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

      .7
- --------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON

                                       CO
- --------------------------------------------------------------------------------

                               (Page 4 of 8 Pages)


                         Amendment No. 3 to SCHEDULE 13D

- -------------------------                                    -------------------
CUSIP No.  502160104                                           Page 5 of 8 Pages
- -------------------------                                    -------------------

- --------------------------------------------------------------------------------
1     NAME OF REPORTING PERSON:                           Channel Partnership II
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON:              22-3215653


- --------------------------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                  (a) |x|
                                                                        (b) |_|


- --------------------------------------------------------------------------------
3     SEC USE ONLY


- --------------------------------------------------------------------------------
4     SOURCE OF FUNDS

                                        WC
- --------------------------------------------------------------------------------
5     CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
      (2)(d) or (e) |_|


- --------------------------------------------------------------------------------
6     CITIZENSHIP OR PLACE OR ORGANIZATION

              Delaware
- --------------------------------------------------------------------------------
  NUMBER OF                  7  SOLE VOTING POWER
   SHARES
BENEFICIALLY                                              24,000
  OWNED BY                ------------------------------------------------------
    EACH                     8  SHARED VOTING POWER                        
 REPORTING                                                                 
   PERSON                                                   None           
    WITH                  ------------------------------------------------------
                             9  SOLE DISPOSITIVE POWER   
                  
                                                          24,000
                          ------------------------------------------------------
                            10  SHARED DISPOSITIVE POWER   
                
                                                             None          
- --------------------------------------------------------------------------------
11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

      24,000  shares
- --------------------------------------------------------------------------------
12    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES  |_|


- --------------------------------------------------------------------------------
13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

      .2
- --------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON

                                       PN
- --------------------------------------------------------------------------------

                               (Page 5 of 8 Pages)


                         Amendment No. 3 to SCHEDULE 13D

- -------------------------                                    -------------------
CUSIP No.  502160104                                           Page 6 of 8 Pages
- -------------------------                                    -------------------

- --------------------------------------------------------------------------------
1     NAME OF REPORTING PERSON:                                      Nelson Obus
      S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (Entities Only):    


- --------------------------------------------------------------------------------
2     CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP                  (a) |x|
                                                                        (b) |_|


- --------------------------------------------------------------------------------
3     SEC USE ONLY


- --------------------------------------------------------------------------------
4     SOURCE OF FUNDS

                                        PF
- --------------------------------------------------------------------------------
5     CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS
      (2)(d) or (e) |_|


- --------------------------------------------------------------------------------
6     CITIZENSHIP OR PLACE OR ORGANIZATION

              United States
- --------------------------------------------------------------------------------
  NUMBER OF                  7  SOLE VOTING POWER
   SHARES
BENEFICIALLY                                              20,000
  OWNED BY                ------------------------------------------------------
    EACH                     8  SHARED VOTING POWER                        
 REPORTING                                                                 
   PERSON                                                   None           
    WITH                  ------------------------------------------------------
                             9  SOLE DISPOSITIVE POWER   
                  
                                                          20,000
                          ------------------------------------------------------
                            10  SHARED DISPOSITIVE POWER   
                
                                                             None          
- --------------------------------------------------------------------------------
11    AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

      20,000  shares
- --------------------------------------------------------------------------------
12    CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES  |_|


- --------------------------------------------------------------------------------
13    PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

      .17
- --------------------------------------------------------------------------------
14   TYPE OF REPORTING PERSON

                                       IN
- --------------------------------------------------------------------------------

                               (Page 6 of 8 Pages)



                         AMENDMENT NO. 3 TO SCHEDULE 13D

Item 1. Security and Issuer.

     This amended  statement  relates to shares of the common  stock,  par value
$.001 per share, of LSB Industries,  Inc. (the "Issuer"). The Issuer's principal
executive offices are located at 16 South  Pennsylvania  Avenue,  Oklahoma City,
Oklahoma 73107.

Item 2. Identity and Background.

     This amended  statement  is being filed by  Wynnefield  Partners  Small Cap
Value,  L.P.  ("Wynnefield")  and Wynnefield  Partners  Small Cap Value,  L.P. I
("Wynnefield-I"),  limited  partnerships  formed  under the laws of the State of
Delaware (the "Partnerships"), Wynnefield Small Cap Value Offshore Fund, Ltd., a
Cayman Islands  corporation  (the "Fund"),  Channel  Partnership  II, a Delaware
partnership ("Channel"), and Nelson Obus, collectively referred to herein as the
"Wynnefield  Entities".  The principal  business of the  Wynnefield  Entities is
investments, and the address of their principal offices is One Penn Plaza, Suite
4720, New York, New York 10119.

     Nelson Obus,  Joshua Landes and Robert Melnick are the managing  members of
Wynnefield  Capital  Management,   LLC  ("WCM"),  the  general  partner  of  the
Partnerships,   and  their  principal  business  address  is  the  same  as  the
Partnerships'. The principal occupations of Messrs. Obus, Landes and Melnick are
to manage the investments of the Wynnefield Entities.  They are also officers of
the Fund and partners of Channel.

     During the past five years,  neither the Partnerships,  the Fund,  Channel,
WCM, Mr. Obus,  Mr. Landes nor Mr.  Melnick (a) has been convicted in a criminal
proceeding  (excluding  traffic  violations or similar  misdemeanors) or (b) has
been a party to a civil  proceeding  of a  judicial  or  administrative  body of
competent  jurisdiction,  as a result of which it or he was or is  subject  to a
judgment,  decree or final order enjoining future  violations of, or prohibiting
or mandating  activities subject to, federal or state securities laws or finding
any violation with respect to such laws.

     Messrs. Obus, Landes and Melnick are citizens of the United States.

Item 3. Source and Amount of Funds or Other Consideration.

     The 568,200  shares of the  Issuer's  common stock that are now held by the
Wynnefield Entities were purchased for cash, which was provided from the working
capital of each of the Wynnefield  Entities,  except in the case of Mr. Obus the
investment was made with personal funds.

Item 4. Purpose of Transaction.

     All 568,200  shares of the  Issuer's  common stock that are now held by the
Wynnefield Entities were purchased for investment.

Item 5. Interest in Securities of the Issuer.

     As the result of the sale by the  Wynnefield  Entities  on May 6, 1999 of a
total of 85,000 shares of the Issuer's common stock, the Wynnefield Entities now
own 568,200 shares of the Issuer's common stock, as follows:  235,620 shares are
owned by Wynnefield, 204,680 shares are owned by Wynnefield-I, 83,900 shares are
owned by the Fund,  24,000  shares are owned by Channel,  and 20,000  shares are
owned by Mr. Obus. Such shares represent 4.8% of the 11,825,586 shares of common
stock of the Issuer reported as outstanding as of March 31, 1999.


                               (Page 7 of 8 Pages)



     Accordingly, after this amended statement is filed, the Wynnefield Entities
will no longer be required to report their  purchases  and sales of the Issuer's
shares under Section 13 (d) of the Securities  Exchange Act of 1934, as amended,
unless  subsequent  purchases  bring  their  collective  holdings  over  the  5%
threshold.

     Messrs.  Obus, Landes and Melnick, the managing members of WCM (the general
partner of the  Partnerships),  the  officers  of the Fund and the  partners  of
Channel  have the sole power to vote,  or to direct  the vote,  or to direct the
sale or other  disposition  of, the shares held by the Wynnefield  Entities.  In
such capacities, Messrs. Obus, Landes and Melnick have the sole power to receive
or to direct the receipt of the  proceeds  from the sale of the  shares,  or any
dividends  paid with  respect to the  shares  held by the  Wynnefield  Entities,
except in the case of Mr. Obus' shares, only he has the power to vote or dispose
of them.


Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
        Securities of the Issuer.

     Neither the Wynnefield Entities,  WCM, Mr. Obus, Mr. Landes nor Mr. Melnick
has any  contracts,  arrangements,  understandings  or  relationships  (legal or
otherwise)  with  respect to the shares of the  Issuer.  None of such  shares is
pledged or otherwise  subject to a  contingency,  the  occurrence of which would
give another person voting or investment power over them.

Item 7. Material to be Filed as Exhibits.

         None


                                   SIGNATURES


     After  reasonable  inquiry and to the best of my  knowledge  and belief,  I
certify  that the  information  set  forth in this  amended  statement  is true,
complete and correct.

            May 17, 1999
               (Date)
                             WYNNEFIELD PARTNERS SMALL  CAP VALUE, L.P.
                             WYNNEFIELD PARTNERS SMALL CAP VALUE, L.P.  I
                                        By Wynnefield Capital Management, LLC

                                                 By:  /s/ Nelson Obus
                                                      --------------------------
                                                          Managing Member

                             WYNNEFIELD SMALL CAP VALUE OFFSHORE FUND, LTD.

                                        By:     /s/ Nelson Obus
                                                --------------------------------
                                                          Authorized Officer

                             CHANNEL PARTNERSHIP II

                                        By:      /s/ Nelson Obus
                                                 -------------------------------
                                                          General Partner

                             /s/ Nelson Obus
                             ---------------------------------------------------


                               (Page 8 of 8 Pages)