Feb 3 2011
China Integrated Energy has finished the construction of a new biodiesel manufacturing plant next to its 100,000-ton biodiesel manufacturing plant in Tongchuan City, Shaanxi Province.
The company, through the new 50,000-ton manufacturing plant, will bring its overall biodiesel manufacturing capacity to 200,000 tons per year. At present, the firm runs a 50,000-ton facility in Chongqing City, China and a 100,000-ton biodiesel facility in Tongchuan City.
The biodiesel facility is anticipated to provide 25% to 30% of the operating capacity in the first Quarter of 2011, 50% to 60% capacity in second quarter of 2011, and 80% to 90% capacity in the third quarter of 2011. The plant can contribute to about $5.2 million in net income and $21 million in revenue for 2011.
The biodiesel plant was built at an estimated cost of about $19.3 million. Till date, the company has paid $18.3 million and the remaining amount of $1 million will be paid in the first quarter of 2011.
The biodiesel facility could help in reducing manufacturing expenditures by about 20% and uses organic waste, agricultural waste and crop straw that will help provide optimal cost controls and capacity utilization.
China Integrated Energy’s CEO, Gao Xincheng, stated that the new facility marks an important step in the company’s business strategy and will enable the firm to address the increasing market demand for biodiesel. He further informed that the company has also planned to build a 300,000-ton biodiesel facility after acquiring Hainan Lin Gao Chemical.
Source: http://www.chinaintegratedenergy.com/