USA: Contract Bagged LSB Industries Wins New Long Term Nitric Acid Contract
Under the terms of the seven year-long agreement, LSB Industries will supply between 70,000 to 100,000 tonnes of nitric acid per year to an important customer, whose name has not been revealed.
Oklahoma/USA – LSB Industries (LSB) has recently 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 tonnes 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 underutilised 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 fertiliser storage facility that we completed construction in April, will provide a meaningful increase in incremental annual Ebitda when fully implemented.”