FUQING CITY, China, Nov. 11 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy", the "Company") today announced that, as of November 10, 2008 it has resumed biodiesel production.
China Clean Energy decided to resume biodiesel production at its existing plant in light of a recent drop in raw material prices, thus allowing the Company to enjoy sufficient margins to make this business segment profitable again. Currently the selling price of biodiesel is in the range of RMB5,500- RMB6,000, as compared to approximately RMB4,800 in second quarter of 2008. Feedstock prices, including yellow grease, cotton seed waste and rape seed waste are currently around RMB2,500-RMB2,700 per ton. At current prices for biodiesel and feedstock, the Company expects to achieve a 23% gross margin on its biodiesel product.
China Clean Energy expects to source its feedstock domestically this quarter and expects to produce up to 800 tons of biodiesel per month from its existing plant (which plant has annual capacity of 10,000 tons).
"We are very excited that we have moved back into producing biodiesel. We are also hopeful that the continued growth in the demand for fuel in China will allow us to operate our biodiesel plant at close to full capacity and help us improve our revenue and profit growth in the quarters ahead," said Mr. Tai-Ming Ou, CEO and Chairman of China Clean Energy Inc.
About China Clean Energy:
China Clean Energy, through its wholly-owned subsidiaries, Fujian Zhongde Technology Co., Ltd. and Fujian Zhongde Energy Co., Ltd, is engaged in the development, manufacturing, and distribution of biodiesel as well as specialty chemical products made from renewable resources.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than statements of historical fact
in this announcement are forward-looking statements, including but not
limited to, the Company's ability to raise additional capital to finance
the Company's activities; the effectiveness, profitability, and the
marketability of its products; the availability of raw material feedstock
at reasonable prices; the future trading of the common stock of the
Company; the ability of the Company to expand its production capacity; the
period of time for which its current liquidity will enable the Company to
fund its operations; the Company's ability to protect its proprietary
information; general economic and business conditions; the volatility of
the Company's operating results and financial condition; the Company's
ability to attract or retain qualified senior management personnel and
research and development staff; and other risks detailed in the Company's
filings with the Securities and Exchange Commission. These forward-looking
statements involve known and unknown risks and uncertainties and are based
on current expectations, assumptions, estimates and projections about the
Company and the industry. The Company undertakes no obligation to update
forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be required
by law. Although the Company believes that the expectations expressed in
these forward looking statements are reasonable, they cannot assure you
that their expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the anticipated
For more information, please contact:
China Clean Energy Inc.
Shannon Yan, CFO
CCG Elite Investor Relations Inc.
Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Ed Job, CFA
|SOURCE China Clean Energy Inc.|
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