FUQING, China, Nov. 28 /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 upgraded its specialty chemicals plant to produce High Performance or Multi-Purpose Hot Melt Adhesives from its patented proprietary processes.
The Company expects to start its High Performance Hot Melt Adhesives production in January of 2008 with annual capacity of approximately 500 tons. China Clean Energy believes it is the first company in China to produce High Performance Hot Melt Adhesives made from environmentally-friendly renewable resources, such as waste oil and yellow grease, using its patented technology. Currently, High Performance Hot Melt Adhesives consumed in China are mostly imported from Europe at a cost of approximately RMB 50,000 per ton, equivalent to about $6,756 per ton at today's foreign currency exchange rates. The Company plans to price its High Performance Hot Melt Adhesives in the range of RMB 35,000 to 40,000 or about $4,700 to $5,400 per ton with over 50% gross margins, and expects this product introduction to make an important contribution to its profitable growth in 2008.
"We are very excited to announce this important addition to our specialty chemicals product line," commented Mr. Tai-ming Ou, China Clean Energy's Chairman and Chief Executive Officer. "This product launch underscores our commitment leveraging our proprietary technology to broaden our product offering, expands our margins and accelerates our profitable growth."
High Performance Hot Melt Adhesives are used primarily for semiconductors, textiles, consumer appliances, and other pressure-sensitive applications, and product assembly processes in various industries, including construction, electronics and automotive industries. The Company believes that there is increasing demand for its vegetable oil-based specialty chemical products, due to high petroleum prices as well as increased awareness and concern for protecting the environment. In addition, China Clean Energy believes that its ability to sell higher value-added specialty chemical by-products such as High Performance Hot Melt Adhesives will help expand its margins and strengthen its competitive position relative to any existing biodiesel competitor, as it can leverage its existing relationships with feedstock suppliers at the same time it diversifies its revenue base.
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: +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)
Email: crocker.coulson@ccgir.com
Mr. Ed Job, CFA
Tel: +1-646-213-1914
Email: ed.job@ccgir.com
