Oct 30 2010
China Integrated Energy has completed the purchase of a biodiesel plant with 50,000 metric ton capacity situated in Chongqing City, China, from Chongqing Tianrun Energy Development.
The firm plans to use the facility immediately for the production and supply of biodiesel. The Chongqing City plant’s processing technology belongs to the first generation type, which is similar to the company’s 10,000-ton biodiesel plant situated in Tongchuan City, Shaanxi Province, China. About $16.5 million is being paid by the company to acquire the Chongqing City plant. The firm has kept about $58.7 million to finance the acquisition since June 30, 2010.
The Chief Executive Officer of China Integrated Energy, Gao Xincheng commented that the new acquisition would increase the company’s gross income and profit immediately. The newly acquired facility and the company’s 50,000-ton biodiesel plant under construction, which will start production this year, will increase the biodiesel production to two fold to 200,000 tons in 2010, he added.
China Integrated Energy plans to start testing and production at the 50,000-ton biodiesel plant, which is under construction, in December 2010. The firm, which has distribution license to the whole nation, expects the newly acquired plant to generate a turnover of $32 million and a pretax income of $8 million next year. The Chongqing City plant is coming under the corporate income tax rate of 15%.
Source: http://www.chinaintegratedenergy.com