NEW YORK, June 30 /PRNewswire-FirstCall/ -- Gushan Environmental Energy Limited ("Gushan"; NYSE: GU), China's largest producer of biodiesel as measured by annual production capacity, today announced that its Shanghai plant had commenced production on June 28, 2008, adding 50,000 tons to the company's annual biodiesel production capacity. With the addition of the Shanghai plant, Gushan's annual biodiesel production capacity has now reached 290,000 tons.
"We are very pleased to see the commencement of production at our Shanghai plant, which we believe shows our ability to continuously expand our production lines and execute our growth strategy. In addition, we completed the construction of this plant on schedule and within the prior estimated budget. With this additional biodiesel capacity, we believe Gushan will further strengthen its leadership in the China biodiesel industry and contribute to the environmental and energy needs of China," said Jianqiu Yu, Chairman of Gushan.
To remain at the forefront of China's biodiesel industry, Gushan plans to continue expanding its production capacity. In addition to opening the new Shanghai plant, Gushan plans to open biodiesel plants in Chongqing and Hunan, each with initial targeted capacities of 30,000 tons per year, and expand the capacity in Beijing by 50,000 tons in the fourth quarter of 2008. With its existing five production facilities, located in the Sichuan, Hebei and Fujian provinces and Beijing and Shanghai, Gushan's aggregate annual biodiesel production capacity is 290,000 tons. Gushan targets to increase its annual biodiesel production capacity to 400,000 tons by the end of 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 five production facilities in the Sichuan, Hebei, Fujian provinces and Beijing and Shanghai with a combined annual production capacity of 290,000 tons. The company targets to increase its annual production capacity to 400,000 tons 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," "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 any applicable government policy, law or regulation, of natural disasters, and 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
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