China Clean Energy shares up 58.4 percent

China Clean Energy (OTCBB: CCGY) held its one day gain of 58.4 percent on trading of 192,000 shares.

The Fuqing City-based biodiesel company had announced yesterday it expects to complete construction of its Jiangyin plant in the second quarter of 2009 without additional equity financing. Instead, China Clean Energy plans to finance working capital with a $4.4 million line of credit from local banks.

"We currently expect to produce both biodiesel and specialty chemicals at our new plant during the second half of 2009, and we view this as a key strength of our strategy which will help mitigate our business risk in this difficult economic environment," said Tai-ming Ou, China Clean Energy Chairman and CEO, in a statement.

China Clean Energy had closed the private placement of 10 million shares of common stock in January 2008 to generate $15 million to build the Jiangyin plant (see Cheaper feedstock revives Chinese biodiesel plant).

In September 2008, the company had $6.4 million in cash and equivalents with $0.3 million of debt. Shortly after in November 2008, China Clean Energy resumed operations at its 10,000 ton annual capacity biodiesel plant. It had halted production in March of that year due to rising feedstock prices.

The new Jiangyin plant is being constructed 20 miles from the company’s existing plant. The plant is expected to produce biodiesel and specialty chemicals from Indonesian and Malaysian waste palm oil. It is expected to cover 112,744 square meters of the Fuzhou Newport Jiangyin Industrial Park. The park is equipped with a deep sea harbor with a container port and a railroad to be connected to China's national railroad network, and is capable of accommodating 100,000 ton cargo ships.