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.
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|SOURCE China Clean Energy Inc.|
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