NEW YORK, April 28 /PRNewswire-FirstCall/ -- Gushan Environmental Energy
Limited ("Gushan"; NYSE: GU), China's largest producer of biodiesel as
measured by annual production capacity, today announced that it has commenced
construction of new biodiesel production plants at its Chongqing and Hunan
sites. Gushan expects that both plants will commence production in the fourth
quarter of 2008. The Chongqing and Hunan plants are expected to add an
aggregate of 60,000 tons (or 30,000 tons each) to Gushan's annual biodiesel
production capacity.
Jianqiu Yu, Chairman of Gushan, said, "We are very proud of our ability to
execute our business plans and are pleased to confirm that our 2008 capacity
expansion plan remains on track. Our commencement of construction of our
Chongqing and Hunan plants, together with our targeted commencement of
biodiesel production at our Shanghai plant in June 2008 and our targeted
increase in capacity at our Beijing plant in the fourth quarter of this year,
keep us on schedule to reach our capacity goal of 400,000 tons by the end of
2008. Furthermore, we are also pleased to report that our Beijing plant,
which commenced production in late January 2008, has been operating at full
capacity since the beginning of March 2008."
"Although we are aware of another operator in the PRC biodiesel sector
recently reporting material adverse changes in its operating conditions, we
have not experienced similar changes in our operating conditions. The
underlying trends in both our raw materials costs and selling prices for our
products remain the same as we have previously reported in our public filings
and in our conference call with investors for our 2007 year end results in
March 2008," said Mr. Yu.
Gushan expects to release the financial results for its 2008 first fiscal
quarter ended March 31, 2008 in the middle of May 2008.
About Gushan Environmental Energy Limited
Gushan Environmental Energy is China's largest producer of biodiesel, as
measured by annual production capacity. The company produces biodiesel, a
renewable, clean-burning and biodegradable fuel, primarily from vegetable oil
offal and used cooking oil, and by-products from biodiesel production,
including glycerine, plant asphalt, erucic acid and erucic amide. Gushan sells
biodiesel directly to users, such as marine vessel operators, as well as to
petroleum wholesalers and individual retail gas stations. The company
currently operates four production facilities in Sichuan, Hebei, Fujian
provinces and Beijing with a combined annual production capacity of 240,000
tons, or approximately 72 million gallons. The company targets to increase its
annual production capacity to 400,000 tons, or approximately 120 million
gallons by the end of 2008 with the expansion or addition of new production
facilities in Beijing, Shanghai, Hunan and Chongqing.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by words such as
"will," "may," "expect," "anticipate," "aim," "target," "intend," "plan,"
"believe," "estimate," "potential," "continue," and other similar statements.
Statements other than statements of historical facts in this announcement are
forward-looking statements, including but not limited to, our expectations
regarding the expansion of our production capacities, our future business
development, and our beliefs regarding our production output. These
forward-looking statements involve known and unknown risks and uncertainties
and are based on current expectations, assumptions, estimates and projections
about the Company and the industry. Important risks and uncertainties that
could cause the Company's actual results to be materially different from
expectations include but are not limited to the effect of intensifying
competition in the biodiesel and alternative energy industries, the
availability of suitable raw materials to the Company, and the risks set forth
in the Company's filings with the U.S. Securities and Exchange Commission,
including on Form F-1, as amended. The Company undertakes no obligation to
update forward-looking statements, except as may be required by law. Although
the Company believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that its expectations will
turn out to be correct, and investors are cautioned that actual results may
differ materially from the anticipated results.
SOURCE Gushan Environmental Energy Limited
