LSB Industries has entered into an agreement with SAIC Constructors to construct a 375,000 tpy ammonia plant at an LSB subsidiary’s site in El Dorado, Arkansas, the companies announced on its website.

The agreement provides for SAIC to provide certain engineering services and to manage the construction of the ammonia plant and associated facilities. The obligations are guaranteed by each party’s parent company.

The total cost of the ammonia plant project is estimated to be between $250 million and $300 million, including additional support facilities that are not covered by the agreement and work to be performed under the management of LSB.

The ammonia plant project is expected to be completed by the end of 2015, subject to timely receipt of environmental permits and assuming no unexpected delays.

LSB says it will fund the construction of the ammonia plant and support facilities from net proceeds of the $425 million in senior secured notes.