China New Energy nabs USD-11.6m deal from Jilin Ethanol Industrial

Jul 19, 2012 - Bioethanol and biobutanol project developer China New Energy Ltd (LON:CNEL) said Wednesday it had secured a CNY-74-million (USD 11.6m/EUR 9.5m) order to enhance the production efficiency and boost the capacity of Jilin Ethanol Industrial Co's (JEIC) plants.

Work on the contract, awarded to CNEL's unit Guangzhou Zhongke Tianyuan Ltd, is to commence immediately. The subsidiary expects to complete most of the activities by December 2012.

JEIC includes a number of state-owned ethanol producers in China's Jilin province, whose combined production capacity is 600,000 tonnes per year. In addition, the company has a 25% stake in another 500,000 tonnes of biofuel-grade ethanol capacity. It is looking to boost its ethanol capacity to one million tonnes by 2013, willing to invest at least CNY 280 million to achieve that goal, CNEL said.

"We expect this to be the first of a number of major contracts from JEIC as it strives to upgrade and increase production capacity during the next 18 months," said company CEO Zhaoxing Tang.

CNEL calculates that the JEIC deal brings to CNY 128 million the contracts it has secured since the start of 2012. The company is to publish its first-half financial report early in September.

(CNY 1 = USD 0.157/EUR 0.128)

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