MOSCOW (MRC) -- LSB Industries (Oklahoma City, Oklahoma) has signed a long-term contract to supply up to 100,000 metric tons/year of nitric acid to an unnamed customer. No value for the contract has been given, said Chemweek.
The company will supply between 70,000-100,000 metric tons/year, with sales expected to begin in the first quarter of 2021, it says. The contract “advances one of our key operating initiatives to leverage our underutilized nitric acid production capacity at our El Dorado [Arizona] facility,” says president and CEO Mark Behrman.
The latest deal is the result of focused efforts by LSB “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,” he says.
As MRC informed earlier, Spain-based La Seda de Barcelona (LSB) is planning to dispose of its PET polymer and raw material plants to raise new capital to develop its PET and chemical operations. LSB has PET plants in Spain, Italy, Greece and Turkey and raw material chemical units in Spain and Portugal. The company wants to sell the plants only if it is unable to get the help of other industrial partners to form a joint venture in order to support its chemical operations.
We remind that Russia's output of products from polymers grew in August 2020 by 4.1% year on year. However, this figure increased by 1.9% year on year in the first eight months of 2020, reported MRC analysts. According to the Russian Federal State Statistics Service, August production of unreinforced and non-combined films rose to 126,300 tonnes from 118,200 tonnes a month earlier. Output of films products grew in January-August 2020 by 8.3% year on year to 863,200 tonnes. August production of non-porous polymer boards, sheets and films exceeded 38,700 tonnes versus 36,400 tonnes in July. Thus, overall output of these products reached 271,900 tonnes over the stated period, up by 3.5% year on year.
MRC