The Company also plans to expand its current bio-diesel production capacity of 100,000 tons to 150,000 tons, either through strategic acquisitions or through a new build-out in 2009. The Company anticipates $15 million in capital expenditures to accomplish this goal. China Bio Energy has secured adequate raw materials to supply 150,000 tons of capacity, and is working towards securing more long-term sources of raw materials.
Management believes the increase in sales volume from these initiatives will not only offset the impact of current decrease in fuel prices but also favorably impact overall profits.
"Our proprietary bio-diesel production capabilities allow us to utilize
multiple types of feedstock, which provide better input cost controls while
ensuring optimal capacity utilization. We are the only integrated bio-diesel
producer in China with a distribution license and are one of only three
companies in Shaanxi licensed to distribute both finished and heavy oil, two
factors which create significant barriers to entry and strong competitive
advantages. Due to our geographic location and long-established supplier
relationships we are able to consistently execute on our growth strategies. We
will continue to capitalize on our extensive distribution network, which
includes valuable railway rights that gives us exclusive access to Yunnan,
Sichuan and Guizhou Provinces. We are supported by a vertically integrated
|SOURCE China Bio Energy Holdings Group|
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