OKLAHOMA CITY--LSB Industries, Inc. (NYSE: LXU) announces 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.