LSB Industries resumes production of nitric acid at El Dorado facility
LSB Industries announced that it resumed production of nitric acid at its El Dorado, Arkansas chemical facility on November 16 following the completion of a temporary nitrous oxide bypass system, and the receipt of required permitting from state regulators. The work was completed to remedy a previously disclosed leak in the nitrous oxide abatement vessel of El Dorado's new nitric acid plant. As previously disclosed, the Company plans to install a new permanent nitrous oxide abatement vessel that management anticipates will be completed in late 2017. In the meantime, the temporary solution is expected to enable El Dorado's nitric acid plant to operate at targeted capacity on an ongoing basis. During the nitric acid plant's recent downtime, customer orders were satisfied utilizing product shipped from LSB's other facilities with minimal financial impact. Expenses related to the construction of the temporary bypass system were recognized in the Q3 and Q4, which the Company expects to recoup, along with costs related to the installation of the new nitrous oxide abatement vessel, under the warranty provisions of the original nitrous acid plant construction contract.