China Integrated Energy (CBEH) announced it has completed a new 50k ton biodiesel production facility adjacent to an existing 100k ton plant in Tongchuan City.  The new plant brings the total biodiesel production capacity to 200K per year.  The new plant will scale production throughout the year, beginning at 25% capacity this quarter to 50% next and to near capacity by the 3rd quarter.  CBEH has expanded its operations significantly in recent months and announced earlier this year the acquisition of property owned by Hainan Lin Gao Chemical in which CBEH will build out another 300K of capacity.

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"Our new biodiesel facility is an integral step in our growth strategy for 2011. It brings on line an additional 50,000 tons of capacity to meet the growing market demand for biodiesel, supported by the government’s goal to increase renewable energy consumption to 15% of China’s total energy consumption by year 2020," stated Mr. Gao Xincheng, Chief Executive Officer of China Integrated Energy. "This new facility, along with our plans to construct a 300,000-ton biodiesel plant (phase one with 200,000-ton) upon the acquisition of Hainan Lin Gao Chemical Co., will support our revenue and net income targets moving forward."

After surging nearly 100% late last year, shares of CBEH have been in correction mode and have nearly retraced that entire move.  In my opinion, once shares have signaled that another bottom is in place, it will offer a very compelling entry point.