China Integrated Energy has secured production equipment for its new 50,000 ton biodiesel production facility currently being constructed in Shaanxi Province, China.
The equipment, which will be used for producing high-quality second-generation biodiesel, incorporates new technologies using a variety of low-cost feedstock, the company said.
The new production facility is being constructed adjacent to the company’s existing 100,000 ton biodiesel production facility and will expand the company’s production capacity to 150,000 metric tons.
Installation of the equipment at the new facility is expected to be completed by the third quarter of 2010, with production commencing in the fourth quarter. The facility is expected to be operating at 60-70% of capacity in the first quarter of 2011, and ramping up to 80-90% utilization rate in the second quarter.
For full-year 2011, the new facility is expected to contribute at least $27m and $9m in revenue and net income, respectively, China Integrated Energy said.
The cost of the equipment represents approximately 85% of the production plant’s total $15m construction budget, with the remaining $2.3m allocated for site preparation and infrastructure on the land, which the company holds a 15-year lease.
The equipment is being exclusively offered to China Integrated Energy in China by two Japanese companies, Shinwa Shouji and Micro Energy, as well as several domestic equipment suppliers. China Integrated Energy reserves the right to order additional equipment in future to meet future expansion plans.