LSB Industries, Inc. (the “Company”) (NYSE: LXU) today announced that
its El Dorado, AR Chemical Company subsidiary’s facility (“El Dorado
Facility”) suffered significant damage to its DSN concentrated nitric
acid plant and surrounding equipment early this morning when a reactor
at that plant exploded. Fortunately, none of our employees or anyone in
the El Dorado community was injured, and we believe there was no
environmental release. The Company is determining the cause of the event
and the extent of the damages. The Company does not have an estimate on
the extent of the damages or the repair time, but at this time the El
Dorado Facility is out of operation due to the damage, and it is unknown
at this time how long the El Dorado Facility will be out of production.
The Company has notified its insurer of this event. The Company’s
insurance policy, which provides replacement cost coverage, has a $1
million deductible for property damage. The Company’s business
interruption insurance covering certain lost profits and extra expense
has a 30 day waiting period. The Company will issue further
communication about this event as warranted.
The Company will conduct a conference call today at 4:15 pm ET/3:15 pm
CT to address the situation. The dial in number is 201-493-6749. The
conference call will also be webcast at the Company’s website at www.lsb-okc.com.
LSB is a manufacturing and marketing 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 and modular geothermal chillers,
and large custom air handlers; and the manufacture and sale of chemical
products for the agricultural, mining, and industrial markets.