China Integrated Energy doubles biodiesel capacity
China's biodiesel producing power is growing following the news of China Integrated Energy’s acquisition of a 50,000-tonne biodiesel production facility in Chongqing City.
The company expects to ramp up production and distribution of biodiesel product from the former Chongqing Tianrun Energy Development facility immediately after the acquisition.
The acquired facility uses first-generation biodiesel production technology, similar to the production process used in the company's current 100,000-tonne production plant.
The company's expertise in biodiesel production and its established distribution network should allow the acquired facility to achieve gross margins of approximately 30%. The company is the only non-state owned biodiesel producer with a nationwide distribution license.
‘With our newly-constructed 50,000 tonne biodiesel production facility, which will come on line later this year, we will double our biodiesel production capacity to 200,000 tonnes this year,’ Gao Xincheng, CEO of China Integrated Energy, comments. ‘With continued government support for renewable energy sources such as biodiesel and strong domestic demand for energy, we are confident in generating strong earnings and cash flow over the next several years.’
The company is paying approximately $16.5 million (€11.9 million) for the Chongqing Tianrun biodiesel production facility.
The company expects to commence testing and ramp-up of the newly constructed biodiesel production facility in December 2010.
The new production facility is adjacent to the company's existing 100,000 tonne biodiesel production facility in Tongchuan City, Shaanxi Province, China.
Image source: China Integrated Energy
The company expects to ramp up production and distribution of biodiesel product from the former Chongqing Tianrun Energy Development facility immediately after the acquisition.
The acquired facility uses first-generation biodiesel production technology, similar to the production process used in the company's current 100,000-tonne production plant.
The company's expertise in biodiesel production and its established distribution network should allow the acquired facility to achieve gross margins of approximately 30%. The company is the only non-state owned biodiesel producer with a nationwide distribution license.
‘With our newly-constructed 50,000 tonne biodiesel production facility, which will come on line later this year, we will double our biodiesel production capacity to 200,000 tonnes this year,’ Gao Xincheng, CEO of China Integrated Energy, comments. ‘With continued government support for renewable energy sources such as biodiesel and strong domestic demand for energy, we are confident in generating strong earnings and cash flow over the next several years.’
The company is paying approximately $16.5 million (€11.9 million) for the Chongqing Tianrun biodiesel production facility.
The company expects to commence testing and ramp-up of the newly constructed biodiesel production facility in December 2010.
The new production facility is adjacent to the company's existing 100,000 tonne biodiesel production facility in Tongchuan City, Shaanxi Province, China.
Image source: China Integrated Energy
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