Apr 28 2008
Gushan Environmental Energy Limited, China's largest producer of biodiesel as measured by annual production capacity, today announced that it has commenced construction of new biodiesel production plants at its Chongqing and Hunan sites. Gushan expects that both plants will commence production in the fourth quarter of 2008. The Chongqing and Hunan plants are expected to add an aggregate of 60,000 tons (or 30,000 tons each) to Gushan's annual biodiesel production capacity.
Jianqiu Yu, Chairman of Gushan, said, "We are very proud of our ability to execute our business plans and are pleased to confirm that our 2008 capacity expansion plan remains on track. Our commencement of construction of our Chongqing and Hunan plants, together with our targeted commencement of biodiesel production at our Shanghai plant in June 2008 and our targeted increase in capacity at our Beijing plant in the fourth quarter of this year, keep us on schedule to reach our capacity goal of 400,000 tons by the end of 2008. Furthermore, we are also pleased to report that our Beijing plant, which commenced production in late January 2008, has been operating at full capacity since the beginning of March 2008."
"Although we are aware of another operator in the PRC biodiesel sector recently reporting material adverse changes in its operating conditions, we have not experienced similar changes in our operating conditions. The underlying trends in both our raw materials costs and selling prices for our products remain the same as we have previously reported in our public filings and in our conference call with investors for our 2007 year end results in March 2008," said Mr. Yu.
Gushan expects to release the financial results for its 2008 first fiscal quarter ended March 31, 2008 in the middle of May 2008.