China Integrated Energy has acquired a 50,000 metric ton biodiesel production facility located in Chongqing City from Chongqing Tianrun Energy Development Co.

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.