The new CWM production facility has annual output capacity of 200,000 metric tons and expands the company’s total annual production capacity to 850,000 metric tons.
Sino Clean Energy currently serves 32 customers under CWM supply agreements totaling approximately 800,000 metric tons per year. It is negotiating with 15 potential customers for supply agreements, which could represent up to 500,000 metric tons of CWM.
Baowen Ren, chairman of Sino Clean Energy, said: “Based on the growing market demand for our coal water mixture supported by the government’s aim at improving efficiency of coal processing, conversion, combustion, and pollution control in the use of coal, we are optimistic that our increased capacity will be rapidly absorbed by the Chinese energy market.
”The Tongchuan facility will be an integral part of our growth for 2010 in our efforts to meet our revenue and net income targets. We expect the additional production capacity to make an immediate impact based on projections of approximately $21m and $7m in revenues and gross profit, respectively, to be contributed by the new production line in 2010.”
