China Bio Energy Acquires Four Gas Stations

Heavy-oil and biodiesel distribution company China Bio Energy Holding Group has added four retail gas stations to its operations. The company now operates five retail gas stations in China.

These acquisitions are part of China Bio Energy Holding’s (CBEH’s) strategy to leverage and strengthen its distribution network by expanding into retail fuel distribution.

The stations, previously operated by the Shaanxi Highway Service Company and equipped to sell gasoline and diesel fuel, are all located along major highways in Shaanxi Province.

CBEH will operate the stations under long-term leases for which the initial duration is 15 years. The company expects that annual revenue per station will average at least $8 million and anticipates net margins of 10% or more.

Gao Xincheng, CEO of CBEH, said: “We are very pleased to have expanded our retail business. We believe that these acquisitions are another excellent example of the value of our distribution network. Demand for fuel is high in China and often outstrips supply. As such, retailers are frequently unable to secure enough supply to sustain operations. Because we regularly distribute large amounts of gasoline and diesel fuel it is relatively easy for us to secure supply.”