Sino Clean Energy Inc. (Nasdaq: SCEI) ("Sino Clean Energy," or the "Company"), a leading producer and distributor of coal-water slurry fuel ("CWSF") in the People's Republic of China ("China"), today announced that its new CWSF production facility located in Dongguan, Guangdong Province has commenced production on January 4, 2011.
The new 300,000 metric tons (MT) CWSF production facility expands the Company's total annual production capacity to 1,150,000 metric tons. Sino Clean Energy used a portion of the proceeds from its follow on public offering completed in December 2010 to fund this expansion. With strong support from the local government and a large base of industrial customers, Guangdong is the largest consumer of CWSF in China. Sino Clean Energy has signed supply agreements with 4 customers, including Yongchang Paper and Tongyi Group, to deliver a combined almost 200,000 MT of CWSF over the next twelve months.
"This is an exciting and important milestone for our company," started Baowen Ren, Chairman of Sino Clean Energy. "Entering Guangdong, the largest province in China in terms of economic output and CWSF consumption, is a key component of our growth strategy. The Dongguan government is aggressively promoting the use of CWSF and plans to expand consumption to 7 million tons in the next 3 years. We believe that our early entry into this market positions us well to be a beneficiary of this growth."
About Sino Clean Energy
Sino Clean Energy is a U.S. publicly traded company and a China-based producer and distributor of coal-water slurry fuel ("CWSF"). With locations in Shaanxi Province and Liaoning Province, Sino Clean Energy is one of the leading CWSF producers in China.
