China Clean Energy Inc. (CCGY)

[rstar]

China Clean Energy Issues First Quarter 2010 Guidance and Announces Launch of Commercial Production at the Jiangyin Plant
Last update: 1/7/2010 9:00:00 AM
FUQING CITY, China, Jan 07, 2010 /PRNewswire via COMTEX/ -- China Clean Energy Inc. (CCGY) ("China Clean Energy", the "Company"), a producer of biodiesel fuel and environmentally-friendly specialty-chemical products made from renewable resources in The People's Republic of China ("PRC"), announced today that the trial production phase at its Jiangyin plant has been successfully completed and as of January 2010 the new plant is operating on a commercial basis. Additionally, the Company's administrative headquarters is now located at the new plant.
As previously disclosed, the Jiangyin plant will increase the Company's specialty-chemicals capacity by 30,000 tons per year to a total of 40,000 tons per year. In addition, the new plant will increase biodiesel capacity by 40,000 tons per year to 50,000 tons per year. Management anticipates that for the first quarter of 2010, China Clean Energy will produce a total of 4,000-4,500 tons of specialty chemicals and 3,000-4,000 tons of biodiesel in both plants. Management presently expects revenue for the first quarter of 2010 to be RMB 50 million (approximately $7.3 million), representing an increase of approximately 150% over the comparable period in 2009.
"We are very pleased with the results from the trial phase as the production equipment is operating according to plan," said Mr. Tai-ming Ou, China Clean Energy's Chairman and CEO. "With the continued support of our customers and hard work and dedication of our partners and employees we have launched commercial operations at the Jiangyin plant in January 2010. We expect our existing customers to absorb up to 50% of our increased specialty-chemicals capacity within the next 6 months, and intend to strengthen our business development efforts to ensure a ramp-up to full capacity by the end of 2010."