Large ammonia plant in El Dorado now operational

Oklahoma City-based LSB Industries said Tuesday (May 17) its new 375,000 ton ammonia plant in El Dorado, Ark., is operational and ammonia production is now underway.

The company expects to sell ammonia into the pipeline by the end of May. The plant will gradually ramp production volume over the next two months and is expected to reach full capacity by the beginning of the third quarter of 2016, according to the statement.

LSB expects the total cost of the project to be approximately $830 million, which is at the low end of its previous range of $831 million to $855 million. This includes the ammonia plant and the construction of a new nitric acid plant and concentrator that were completed in 2015.

“We are pleased to have achieved this critical milestone with the start-up of the new ammonia plant at our El Dorado Facility,” Daniel Greenwell, LSB’s CEO said in the statement. “We believe that the ammonia plant will significantly enhance the financial performance of the El Dorado Facility and have a materially positive impact on LSB’s overall performance. We look forward to sharing these results with our shareholders in the upcoming quarters.”

LSB’s produces chemical products for the agricultural, mining, and industrial markets, and commercial and residential climate control products, such as water source and geothermal heat pumps, hydronic fan coils, modular chillers, large custom air handlers and make-up air units.