28 October 2013 17:08 [Source: ICIS news]
HOUSTON (ICIS)--LSB Industries has settled the insurance claims from the explosion that occurred in May 2012 at the El Dorado Chemical plant in Arkansas, the producer confirmed on Monday.
In a statement, the Oklahoma City-based company said it will be receiving a $113m (€81m) payment as a result of the blast at the facility, which produced nitric acid. The explosion occurred when the facility was undergoing a restart after being temporarily shuttered for maintenance.
The incident was blamed on a reaction from the exposure of acid, nitrogen tetroxide and oxygen combining together. No injuries or chemical release resulted from the eruption, but area residents reported hearing the explosion from several miles away.
According to LSB officials, the company has received a payment of $60m with the balance of $53m to be paid within the next 30 days. The company acknowledge that it did have to remit a deductible payment of $1m on the claim.
Previously LSB had announced its intention to spend roughly $120m to construct a replacement plant for the production of nitric acid, which is used for agricultural and industrial uses, primarily pesticides and metal treatments.
Currently the company is waiting for a permit to be issued by the Environmental Protection Agency (EPA) for the plant. It is envisioned that the replacement facility could be operational by sometime in 2015.
($1 = €0.72)
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