China Integrated Energy

Growth Strategy

We are on track on our 2010 goal of doubling biodiesel production capacity to 200,000 tons through both internal expansion and an acquisition. As the only non-state-owned biodiesel producer with a distribution license, we will continue to position ourselves as a leader in terms of capability, capacity, and technology.  We will continue to work with provincial and local agricultural administrations and environmental protection agencies to ensure priority purchase of biodiesel raw materials, and with leading universities and research institutes to develop alternative sources of feedstock to strengthen our supply chain and cost flexibility.

Enhance R&D efforts to improve biodiesel production technology and efficiency

We will continue investing resources and working closely with leading universities and research and development institutes that specialize in agricultural research to develop new technologies for more efficient and cost-effective biodiesel production.  We will also continue to search for alternative feedstock to enhance the availability of raw materials and reduce costs of feedstock for biodiesel production.

Strengthen our relationship with key suppliers for finished oil and heavy oil and diversify our supply base

We will maintain a strong working relationship with Shaanxi Yanchang Group, our largest finished oil and heavy oil products supplier, along with other suppliers, to ensure favorable pricing terms and a stable supply of oil products.  We will explore suppliers with significant oil resources and advantageous pricing in various regions to diversify our supply chain and enhance our sales margin.  

Expand our wholesale and retail distribution network through both organic growth and potential acquisitions

We will expand our wholesale distribution of finished oil and heavy oil products by increasing the number of our regional sales offices and sales staff in various territories to develop new markets and a wider customer base.  We plan to continue penetrating existing territories to develop new customers, and meet increased demand from our current ones as their businesses grow.  We will continue scouting high traffic locations to expand our portfolio of retail gas stations to create additional sales and higher profitability for our overall distribution channels.  We foresee industry consolidation, and believe that we are well-positioned to benefit from such market trends.

Continue application process to obtain oil import/export license

In 2008, we submitted an application for an oil import/export license.  We will continue working with the governmental agencies to obtain the license to broaden our business scope.