LSB Industries, Inc. announced that a subsidiary in its Chemical Business entered into an agreement with SAIC Constructors, LLC to construct a 375,000 ton per year ammonia plant at an LSB subsidiary’s site in El Dorado, Ark. The agreement provides for SAIC to provide certain engineering services and to manage the construction of the ammonia plant and associated facilities. The obligations under the agreement are guaranteed by each party’s parent company.
The total cost of the ammonia plant project is estimated to be between $250 million and $300 million, including additional support facilities that are not covered by the Agreement and work to be performed under the management of LSB. The ammonia plant project is expected to be completed by the end of 2015, subject to timely receipt of environmental permits and assuming no unexpected delays.
LSB will fund the construction of the ammonia plant and support facilities from the net proceeds of the $425 million Senior Secured Notes completed on Aug. 7, 2013.