China Clean Energy's Expansion Plans

JUNAN COUNTY, Shandong Province, China (TheStreet) - China Clean Energy (CCGY) is a China-based renewable resource biodiesel and chemicals manufacturer.

William Chen, the company's chief financial officer, recently sat down with TheStreet to discuss the company's history and prospects.

Can you provide some background details of the company?

China Clean Energy is located in Fuqing City in Fujian province of China, and is engaged in the developing, manufacturing and distribution of biodiesel and specialty chemical products from renewable resources. We found a process through research and development to create biodiesel from waste grease including vegetable oil and palm oil.

Where do you see the company in five years? 10 years?

In the next few months, we will continue our focus on expanding shipments to our existing customers and also adding new customers. During the first quarter of 2010 we added three new specialty chemical and two biodiesel customers and we are negotiating with six new customers for our specialty chemical products.

As we go down the road, we will take conservative measures to upgrade to Amex or the Nasdaq in order to pursue opportunities in acquisition projects such as acquiring one of the upstream feedstock suppliers. This will help us better manage our feedstock supply and cost, and we may acquire two to three retail gas stations to sell our own biodiesel to increase profitability and sales volume. As the demand increases, we will expand additional capacity in our new Jiangyin facility.

What are CCGY's competitive advantages? What makes these sustainable over long periods of time?

One of our major advantages is that we have a sustainable business in our specialty chemical business segment. In addition, our new facility is able to produce more efficiently and our large customer base is able to absorb the additional supply for our products. In addition, we are now located near the sea port and railroad, which gives an advantage to easily export our products as well as transporting our feedstock.

Who are your main competitors?

One of the main competitors would be Gushan, they are the largest biodiesel producers in China. They have seven facilities in China and one is in our province. They are currently having trouble due to the consumption tax. This tax does not affect CCGY because our customers are not state-owned enterprises.

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