Handan Guanxin will become China Clean Energy’s internal source of raw materials that it utilizes to produce its specialty chemicals and biodiesel products.
China Clean Energy chairman and CEO Tai-ming Ou said in making this acquisition, the company has now secured a significant portion of its raw materials supply which will reduce the volatility of its production costs and lead to an increase in its bottom-line profitability.
On 10 November 2011, China Clean Energy subsidiary Fujian Zhongde Energy signed equity ownership transfer agreements with Handan Guanxin Technology to acquire equity interests of Handan Guanxin.
In its first year of operation, Handan Guanxin is expected to produce 7,500 tons of the feedstock and some additional by-products, fulfilling about 30% of the company’s feedstock needs.
