Gushan to resume biodiesel production in Fujian, China
In China, Gushan Environmental Energy announced that it intends to resume biodiesel production at Fujian Gushan, and to commence production at Chongqing Gushan, and to commence production at Chongqing Gushan, in the second quarter of 2011 following a clarification by the Ministry of Finance of the People’s Republic of China, or the Ministry of Finance, and the State Administration of Taxation of the People’s Republic of China, or the SAT, that pure biodiesel made from waste animal fat or vegetable oil is exempt from consumption tax in China.
On December 24, 2010, the Ministry of Finance and the SAT issued Caishui [2010] No. 118, which stated two major conditions: that waste animal fats or vegetable oils make up at least 70% of the raw materials and the biodiesel certain quality standards previously issued by the General Administration of Quality Supervision, Inspection and Quarantine and the Standardization Administration. Gushan expects that biodiesel produced at all of its production facilities will satisfy the conditions set forth by Caishui 118 and so qualify for the exemption.
In addition, the Company expects both Sichuan Gushan Vegetable Fat Chemistry Co., Ltd., or Sichuan Gushan, and Shanghai Gushan Bio-Energy Technologies Co. Ltd., or Shanghai Gushan, to resume production in the second quarter of 2011 pending the relocation of the Company’s Sichuan production facilities and the resolution of a legal dispute with a construction contractor of Shanghai Gushan.
Category: Fuels
