LSB Industries, Inc. (the “Company”) (NYSE: LXU) today announced that a subsidiary of the Company purchased for $6.5 million a group of chemical plant components. This equipment is intended to improve the operation and efficiency of its ammonia plant in Pryor, Oklahoma and for possible use at certain of its other chemical facility locations. Previously, this equipment was in operation at a chemical production facility in the United States.
During the next six to eight months, the Company expects to move this equipment from its current location to its appropriate chemical facilities for installation and to shops for refurbishment. The cost to transport, install and refurbish this equipment has not yet been determined. The Company funded the purchase of this equipment, and intends to fund the other costs associated with the equipment, from its working capital.
LSB is a manufacturing and marketing company. LSB’s principal business activities consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils and modular geothermal chillers, and large custom air handlers; and the manufacture and sale of chemical products for the agricultural, mining, and industrial markets.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements generally are identifiable by use of the words “expects,” “estimates,” “intends,” “believe,” or similar expressions, and such forward-looking statements including, but not limited to, the use of the purchased equipment to improve the operation and efficiency of the ammonia plant at the Company’s chemical facility in Pryor, Oklahoma, length of time to move the equipment and method of funding the cost to transport, install and refurbish the equipment. Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from the forward-looking statements as a result of various factors, including, but not limited to, additional equipment failure, weather conditions, ability to repair or install necessary equipment at the Pryor Facility and its other chemical facilities, demand for the chemical products produced at the Pryor Facility, general economic conditions, and other factors set forth under “A Special Note Regarding Forward-Looking Statements” and “Risk Factors” contained in our 2011 Form 10-K and our March 31, 2012 Form 10-Q.
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