US LSB Industries to end AN supply deal with Orica

04 April 2014 14:53 Source:ICIS News

HOUSTON (ICIS)--LSB Industries said on Friday that its El Dorado Chemical subsidiary will not renew its ammonium nitrate (AN) supply agreement with Orica when the deal expires in April 2015.

US-based LSB said that it plans to resume selling AN directly to the explosives market from the second quarter of 2015 onward. The exclusive agreement with Orica currently prevents LSB from selling AN from its facility in El Dorado, Arkansas, into the explosives market.

“Our strategy was to proactively notice Orica of our intention to let our agreement expire, and beginning in the second quarter of 2015, it is our intention to commence sales of AN to the explosives market,” said LSB CEO Jack Golsen.

“This is a market in which we have historically participated and have significant experience,” Golsen said.

Orica represented about 6% of LSB’s consolidated net sales last year.

By Stefan Baumgarten