China Integrated Energy, Inc., the integrated gas company in China which distributes various finished oil and heavy oil products, was proud to announce today that the company finally completed its project of a brand new biodiesel production facility with a capacity of 50,000 tons, adding to its 100,000 ton biodiesel facility in Tongchuan City, Shaanxi Province.
The addition of the new facility will add to its current biodiesel production, resulting in a new high of 200,000 tons annually. The company is already in operation with a 100,000 ton biodiesel facility in Tongchuan City, along with a 50,000 ton plant location in Chongqing City in China.
An operating capacity percentage of 25%-30% is expected for Q1 in 2011, an increased 50%-60% for the second quarter of this year, following a 80-90% utilization rate for Q3. The company anticipates its new facility to contribute about $21 million in revenue and a staggering $5.2 million in net income.
“Our new biodiesel facility is an integral step in our growth strategy for 2011. It brings on line an additional 50,000 tons of capacity to meet the growing market demand for biodiesel, supported by the government’s goal to increase renewable energy consumption to 15% of China’s total energy consumption by year 2020,” stated Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy. “This new facility, along with our plans to construct a 300,000-ton biodiesel plant (phase one with 200,000-ton) upon the acquisition of Hainan Lin Gao Chemical Co., will support our revenue and net income targets moving forward.”
The second generation 50,000 ton facility recently completed has been given an estimated 20% reduction in production costs for China Integrated. The new facility will use a plethora of raw materials to its advantage, including crop straw, waste for agricultural use and various organic wastes, allowing the company more control its cost controls as the company uses the facility to its utmost potential.
China Integrated Energy Inc. produces and distributes various forms of oil such as gasoline, diesel, and naphtha, sending them to various retail service stations and retail gas stations throughout the country. The company owned and operated 12 retail gas station in China as of March 9 of last year. The company also involves itself in the production and retail of biodiesel to oil trading companies, along with ending users compromising gas station, electric power companies, and shipping companies. The company has been formerly known as China Bio Energy Holding Co. Ltd. opting for its newer, revamped name in September of 2009. China Integrated resides its main headquarters in Xi’an City, China.
For more information visit: www.chinaintegratedenergy.com