China Integrated Energy has signed a non-binding letter of intent to buy all the assets of Hainan Lin Gao Chemical Co, and plans to build a 300,000-ton biodiesel plant in the Hainan Province.
The assets include a land use right to about 15 acres of land, an oil storage facility with 15,000 cubic meters of storage capacity, and built-in infrastructure including power, water and waste treatment.
The first phase of the biodiesel plant, which is planned to be built at the Hainan Lin Gao Chemical facility, includes a production facility with 100,000-ton capacity, and is expected to commence production about 12 months after the closing of the acquisition.
The acquisition of the assets is expected to be completed by the end of the first quarter of 2011.
China Integrated Energy said it also continues with the construction of its new 50,000-ton biodiesel production facility, adjacent to its existing 100,000-ton biodiesel production facility in Tongchuan City of the Shaanxi Province.