LSB Oklahoma plant still not making UAN after February shutdown

25 April 2012 23:26  [Source: ICIS news]

HOUSTON (ICIS)--Repairs on LSB Industries’ urea ammonium nitrate (UAN) plant in Oklahoma are expected to continue for yet another 60 days following a shutdown on 27 February, the company said on Wednesday.

The Pryor plant was shut down for repairs in late February and the repair period was “expected to extend approximately 60 more days because we have determined that the damaged portion of the urea reactor, which is the reactor’s stainless steel liner, is non-repairable and the liner has to be replaced,” LSB said.

LSB estimated that the downtime would result in $4m (€3m) less operating income for March.

“In addition, in March, the company accrued $3m for probable losses for UAN tons that were pre-sold at firm sales prices, subject to make-whole terms, but not delivered due to the extended urea plant downtime,” LSB said.

“Subsequent to March and until the urea plant is back in production, the company estimates the downtime will result in approximately $900,000 per week less operating income than if the urea plant was in production,” LSB continued.

Ammonia from another LSB plant at the Pryor site was used to feed the UAN facility.

The ammonia plant is operating at 600 tons/day after it resumed production on 22 March after seven-day unplanned maintenance shutdown.

The ammonia is being sold directly to the fertilizer market, LSB said.


By: Brian Ford
+1 713 525 2653



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