China Agro-Technology Announces Plans for 2 Million Metric Ton Biodiesel Refinery Plant in China
CAT Expects Net Profits of US$30-40 Million Beginning in First Quarter 2009
SINGAPORE, March 10 /PRNewswire-FirstCall/ -- China Agro-Technology Ltd.
('CAT') (OTC Bulletin Board: CAGTF) today announced that it has signed a
Memorandum of Understanding with the Beihai city government on February 23,
2008 to set up a biodiesel refinery plant in Beihai, Guangxi Province in the
People's Republic of China.
CAT expects to invest up to $200 million over the next four years to
operate a plant which, at full capacity, can produce 2 million metric tons per
annum. CAT has a target completion timeline for the factory of six months
from the date of commencement.
Using present market prices, the net profit for every metric ton of oil
would be US $350. Therefore, beginning in the 1st Quarter of 2009, CAT
estimates that it can produce a minimum of 80,000 to 100,000 metric tons,
yielding a net profit of US$30-40 million assuming current production
capabilities.
CAT Founder & Chairman, Dr. Harry He noted that 'Biodiesel has the highest
demand of any commodity in China. To meet the 2020 B10 Kyoto Protocol
requirement, China needs 12,400,000 tons of biodiesel in 2008. However in
2007, the supply in China was less than 1 million tons. Therefore, the
product from this biodiesel plant will be a very important part of China's
effort to meet the requirement.'
Beihai is located between Guangxi and Guangdong Provinces at the southern
part of China, facing Southeast Asia. Beihai Harbor, located at the
northeastern bank of Beibu Gulf, is a deep-sea port with the capacity to
handle vessels up to 300,000 tons. Beibu Gulf is one of the Central Government
recognized Economic Development Zones granted special benefits inter alia:
(a) Allocation of 1000 mu (66.6ha) of industrial land with full
infrastructure and facility at a special discount;
(b) Attractive tax incentives including tax free for the first 2 years and
50% tax reduction for the following 3 years;
(c) The right to apply for a subsidy of RMB1,300 (est. USD180) for every
ton of biodiesel produced.
Dr. He added, 'because of CAT's advanced leaf growing technology, coupled
with the good suitable land environment, we believe we will be one of the most
essential suppliers of Jatropha crude oil. More importantly, however, by being
able to produce our own refined biodiesel at the Beihai facility, CAT also
will be in a strategically important position in the supply of biofuel. We are
currently forming our team of professionals and consultants to execute the
plan.'
About China Agro-Technology Holdings, Ltd
China Agro-Technology Holdings, Ltd ('CAT') is an ecologically sustainable
agricultural technology enterprise that aims at promoting a global
reforestation program, generating environmental rehabilitation and serving the
acute demands for resource products. CAT is principally engaged in the
ecological forestry business and agricultural technology, production and sale
of quality seeds and marketing of agro-technology know-how. CAT's strength is
its group of highly innovative research scientists and agronomists who
specialize in the R&D of agriculture and intelligent computer non-tube plant
propagation technology. Driven by agro-biotechnology, CAT is able to achieve
higher output with a shorter growth period. With the planting of Jatropha, CAT
will broaden its revenue sources and increase its role in the biodiesel
markets and 'going green' efforts. CAT believes that partnering countries
could leverage on its genetic engineering plantation technologies to maximize
agriculture outputs and generate economies of scale while promoting an
ecologically sustainable land environment.
Safe Harbor Statement: Under The Private Securities Litigation Reform Act
of 1995: Except for historical information contained herein, the statements in
this news release are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which may cause
a company's actual results, performance and achievement in the future to
differ materially from forecasted results, performance, and achievement. These
risks and uncertainties are described in the Company's periodic filings with
the Securities and Exchange Commission. The Company undertakes no obligation
to publicly release the results of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date
hereof, or to reflect the occurrence of unanticipated events or changes in the
Company's plans or expectation.
SOURCE China Agro-Technology Ltd.
