FUQING, China, Nov. 5 /Xinhua-PRNewswire-FirstCall/ -- China Clean Energy Inc. (OTC Bulletin Board: CCGY) ("China Clean Energy," "the Company"), a leading producer of biodiesel fuel and environmentally friendly specialty chemical products made from renewable resources in The People's Republic of China ("PRC"), today announced that it has successfully completed several steps in the government approval process for the build-out of its new biodiesel plant at the Jiangyin Industrial Park, putting the Company on track to complete construction on schedule for production start up in the fourth quarter of 2008.
Over the past few weeks China Clean Energy received approval from various departments of the local Chinese government, including: "Safety Approval for Risky Chemical Production project" from Fuzhou City Safe Production Monitoring Agency; "Approval for Fujian Zhongde Limited Environmental Impact for the 100,000 Biodiesel Production Facility" from Fuzhou City Environmental Protection Agency; "Approval for The Establishment and Construction of 100,000 Tons Additional Annual Biodiesel Production" from the Jiangyin Industrial Park Authority of Fuzhou City; "Approval for Foreign Investment Enterprise" from Foreign Trade Commission of Fuzhou City. The Company expects to obtain the business license from local authorities momentarily, thus completing the approval process.
"We are pleased with the progress we have made towards building our new biodiesel facility in Fuqing Jiangyin Industrial Park," said Mr. Tai-ming Ou, Chairman and CEO of China Clean Energy. "We expect the approval process to be completed shortly, positioning us well to capitalize on record high international oil prices as well as the recent increase in diesel prices in China mandated by the government."
The new biodiesel fuel plant will be located 15 miles from China Clean Energy's existing facility and will have a land area of 112,744 m2 with total investment cost estimated at $15.0 million including land usage rights, equipment acquisition and installation costs as well as working capital. The Company plans to start construction of the 100,000 metric ton capacity plant, equivalent to 30 million gallons, during the fourth quarter of 2007, with production start-up expected in the fourth quarter of 2008. China Clean Energy has reached preliminary long-term agreements with major processors from Indonesia and Malaysia to supply palm oil leavings (waste) as raw materials for the new facility.
About China Clean Energy:
China Clean Energy, through its wholly-owned subsidiary, Fujian Zhongde Technology Co., Ltd., is engaged in the development, manufacturing, and distribution of biodiesel fuel and specialty chemical products made from renewable resources. Since its inception, the Company has been engaged in the manufacture of high-quality specialty chemical products from renewable resources. Through its research and development efforts, the Company developed a proprietary process for refining biodiesel fuel from waste grease and certain vegetable oils. Using this proprietary process, China Clean Energy began producing biodiesel in 2005 and commenced selling biodiesel commercially starting in December 2005.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and the marketability of its products; the Company's ability to successfully expand its production capacity, the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Mr. Gary Zhao, CFO
China Clean Energy Inc.
Tel: +1-86-138-0133-9172 (China)
Email: gary.zhao@chinacleanenergyinc.com
Mr. Crocker Coulson, President
CCG Elite Investor Relations Inc.
Tel: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
CCG Elite Investor Relations Inc.
Tel: +1-646-213-1914 (New York)
