LSB Industries, Inc. Announces New 7 Year Nitric Acid Contract
October 08 2020 - 8:30AM
Business Wire
LSB Industries, Inc. (“LSB”), (NYSE: LXU), today announced that
it has signed a new long term nitric acid supply contract with a
customer. Under the agreement, LSB will supply between 70,000 to
100,000 tons of nitric acid per year. Sales are expected to begin
in the first quarter of 2021.
“We are very pleased to have been chosen as key long-term
supplier of nitric acid to an important customer,” stated Mark
Behrman, LSB’s President and Chief Executive Officer. “Notably, his
contract advances one of our key operating initiatives to leverage
our underutilized nitric acid production capacity at our El Dorado
facility. This contract, along with the previously released CO2 and
LDAN agreements, is the result of our focused marketing efforts to
sell our excess production capacity and change product mix in order
to enhance our margins. We expect these agreements, when combined
with the impact of a new fertilizer storage facility that we
completed construction on in April, will provide a meaningful
increase in incremental annual EBITDA when fully implemented.”
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
manufactures and sells chemical products for the agricultural,
mining, and industrial markets. The Company owns and operates
facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor,
Oklahoma, and operates a facility for a global chemical company in
Baytown, Texas. LSB’s products are sold through distributors and
directly to end customers throughout the United States. Additional
information about the Company can be found on its website at
www.lsbindustries.com.
Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements generally are
identifiable by use of the words “may,” “believe,” “expect,”
“intend,” “plan to,” “estimate,” “project” or similar
expressions.
Investors are cautioned that such forward-looking statements are
not guarantees of future performance and involve risk and
uncertainties. Though we believe that expectations reflected in
such forward-looking statements are reasonable, we can give no
assurance that such expectation will prove to be correct. Actual
results may differ materially from the forward-looking statements
as a result of various factors. These and other risk factors are
discussed in the Company’s filings with the Securities and Exchange
Commission (SEC), including those set forth under “Risk Factors”
and “Special Note Regarding Forward-Looking Statements” in our Form
10-K for the year ended December 31, 2019, our Form 10-Q for the
first quarter of 2020 and, if applicable, our Current Reports on
Form 8-K. All forward-looking statements included in this press
release are expressly qualified in their entirety by such
cautionary statements. We expressly disclaim any obligation to
update, amend or clarify any forward-looking statement to reflect
events, new information or circumstances occurring after the date
of this press release except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201008005199/en/
LSB Contact: Mark Behrman, President & CEO Cheryl Maguire,
Executive Vice President & CFO (405) 235-4546
Investor Relations Contact: The Equity Group Inc. Fred
Buonocore, CFA (212) 836-9607 Michael Gaudreau (212) 836-9620
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