Profile: LSB Industries, Inc. (LXU.N)

LSB Industries, Inc. (LSB) is a diversified holding company, which operates through its wholly owned subsidiary, ThermaClime, Inc. (ThermaClime) and its subsidiaries. The Company operates in two segments: Climate Control and Chemical. Climate Control business is engaged in the manufacturing and selling of a range of heating, ventilation and air conditioning (HVAC) products for use in commercial and residential new building construction, renovation of existing buildings and replacement of existing systems. Chemical business is engaged in the manufacturing and selling of chemical products produced from plants in Texas, Arkansas and Alabama for the industrial, mining and agricultural markets.

Climate Control Business

The Company’s Climate Control Business manufactures and sells a range of geothermal and water source heat pumps and hydronic fan coils, as well as custom air handlers and modular chiller systems. These products are used in commercial and residential HVAC systems. The Company manufactures its products in numerous sizes and configurations, as required by the purchaser, for requirements of hotels, motels, schools, hospitals, apartment buildings, office buildings and other commercial or residential structures. Its Climate Control Business sells its products to mechanical contractors, original equipment manufacturers (OEMs) and distributors.

Chemical Business

LSB’s Chemical Business manufactures products for three principal markets: concentrated, blended and regular nitric acid, mixed nitrating acids, metallurgical grade anhydrous ammonia, sulfuric acid, and high purity ammonium nitrate (AN) for industrial applications; anhydrous ammonia, fertilizer grade AN, urea ammonium nitrate (UAN), and ammonium nitrate ammonia solution (ANA) for the agricultural applications, and industrial grade AN and solutions for the mining industry.

The Company’s Chemical Business manufactures and sells industrial acids and other chemical products primarily to the polyurethane, paper, fibers and electronics industries. It is a supplier of concentrated nitric acid and mixed nitrating acids, specialty products used in the manufacture of fibers, gaskets, fuel additives, ordnance and other chemical products. In addition, at the El Dorado Facility, LSB produces and sells blended and regular nitric acid and it is a supplier of sulfuric acid, primarily to the paper manufacturers. At the Cherokee Facility, the Company is also a supplier of industrial and high purity ammonia for many specialty applications, including chemicals to treat emissions from power plants. The products its Chemical Business manufacture are derived from the raw material feedstocks, such as anhydrous ammonia, natural gas and sulfur.

The Company competes with Agrium, CF Industries, Dyno Nobel North America and Terra Industries.