LXU - LSB signs new 7-year nitric acid supply contract

LSB Industries ([[LXU]]) signs a new long term 7-year nitric acid contract to supply between 70,000 to 100,000 tons of nitric acid per year to a customer. Sales are expected to begin in the Q1 2021. Mark Behrman President and CEO comments: “Notably, his contract advances one of our key operating initiatives to leverage our underutilized 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 fertilizer storage facility that we completed construction on in April, will provide a meaningful increase in incremental annual EBITDA when fully implemented.”

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LSB signs new 7-year nitric acid supply contract