08 May 2009 15:36 [Source: ICIS news]
TORONTO (ICIS news)--LSB Industries has reached an agreement to sell almost all of the urea ammonium nitrate (UAN) produced by its Pryor Chemical subsidiary in Pryor, Oklahoma, to Koch Nitrogen, LSB said on Friday.
The deal, for initially 325,000 tonnes/year of UAN and 35,000 tonne/year of anhydrous ammonia, would enable LSB to restart the plant at Pryor in the third quarter, it said.
“With this agreement, we look forward to starting the Pryor, Oklahoma, facility in the third quarter of this year, having obtained all necessary permits, ordered needed production equipment and filled key posts at the plant,” LSB CEO Jack Golsen said in a statement.
The company said earlier it was planning to restart the facility, provided it could find a buyer.
The agreement with Koch has a five-year term with termination options by both parties beginning after August 2010, LSB said.
Financial terms were not disclosed.
LSB officials were not immediately available for additional comment.
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