Press Release Source: Gushan Environmental Energy Limited On Tuesday December 28, 2010, 7:05 am EST
NEW YORK, Dec. 28, 2010 /PRNewswire/ -- Gushan Environmental Energy Limited ("Gushan" or the "Company"; NYSE: GU), a leading producer of biodiesel in China, today announced that the Company is currently in the process of assessing the effect of a recently issued notice on consumption tax issued by the Ministry of Finance of the People's Republic of China (the "Ministry of Finance") and the State Administration of Taxation of the People's Republic of China (the "SAT"). The Notice Regarding the Exemption from Consumption Tax on Pure Biodiesel Made from Waste Animal Fats or Vegetable Oils (the "Notice") issued on December 24, 2010 becomes effective immediately and, clarifies that pure biodiesel made from waste animal fats or vegetable oils is exempted from consumption tax in China, and that such exemption will be implemented with retroactive effect to January 1, 2009. According to this Notice, any consumption tax paid on pure biodiesel made from waste animal fats or vegetable oils prior to the issuance of the Notice will be refunded. On December 24, 2010, the Press and Information Office of the Ministry of Finance issued a statement which specified that the consumption tax exemption described in the Notice is aimed at supporting the development of the renewable resources sector, alleviating petroleum supply shortages and enhancing environmental and ecological protection in China. Gushan is in the process of assessing the immediate impact of this Notice on its business operations and production plans and expects to make an announcement regarding the implications of this Notice following further evaluation by its management.
About Gushan Environmental Energy Limited
Gushan is a leader in the PRC biodiesel industry, in terms of annual production capacity, and one of the leading biodiesel producers in Asia, in terms of nominal capacity. Gushan produces biodiesel, a renewable, clean-burning and biodegradable fuel and a raw material used to produce chemical products, primarily from vegetable oil offal and used cooking oil, and by-products from biodiesel production, including glycerine, plant asphalt, erucic acid and erucic amide. Gushan sells biodiesel directly to users, such as marine vessel operators and chemical factories, as well as to petroleum wholesalers and individual retail gas stations. The Company has seven production facilities, located in the Sichuan, Hebei, Fujian and Hunan provinces and in Beijing, Shanghai and Chongqing, with a combined annual production capacity of 390,000 tons. Gushan's Hebei and Beijing production facilities are currently in operation. Gushan also operates a copper recycling business through Mianyang Jin Xin Copper Company Limited ("Jin Xin"), a 67%-owned subsidiary, that manufactures copper rods, copper wires and copper granules from recycled copper in Sichuan. Jin Xin has one plant in Sichuan, with a daily production capacity of approximately 160 tons of recycled copper products.