The acquired facility uses first generation biodiesel production technology, similar to the production process used in the company’s current 100,000-ton production plant.
China Integrated Energy said its expertise in biodiesel production and its distribution network will allow the acquired facility to achieve gross margins of approximately 30%.
The company is paying approximately $16.5m in cash for the newly constructed biodiesel production facility, and expects to commence testing and ramp-up of the facility in December 2010.
