LSB Industries will close its direct strong nitric (DSN) acid plant in El Dorado in Arkansas, US, indefinitely, following a reactor explosion at the site.
The company said none of its employees or anyone in the El Dorado community was injured.
Jack Golsen, LSB Industries chief executive, told Reuters that the explosion also caused minor damage to three other acid plants at the facility. It is unknown how long the El Dorado facility will be out of production as the control room has also been damaged, according to Golsen.
The company is determining the cause of the event and the extent of the damages.
LSB is expected to receive replacement cost coverage of $1m within 30 days for property damage from its insurer.
The El Dorado plant produces about 470,000tpa of nitrogen-based products, according to the company's annual report filed on 28 February 2012.
LSB, a subsidiary of AR Chemical Company, manufactures control products such as geothermal and water source heat pumps, hydronic fans, coils and modular geothermal chillers and custom air handlers, as well as selling chemical products for agricultural and mining industries.