• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

New Oriental Energy &Amp; Chemical Corp. Commences Expansion of DME Facility

Posted on: Tuesday, 12 December 2006, 09:01 CST

New Oriental Energy & Chemical Corp. (OTCBB: NOEC), an emerging alternative fuel and specialty chemical manufacturer in China, announced today that during November 2006 the Company successfully began construction on its planned expansion of the Company's DME facility. This is the third such expansion over the last year.

DME, or Dimethyl Ether, is a clean, environmentally friendly energy suitable for a wide variety of applications, at very attractive price points and is commonly being utilized as a substitute for petroleum diesel. Currently, DME on a retail basis is currently being sold at approximately a 20 percent discount when compared to petro-diesel. New Oriental Energy plans on using the Company's access to methanol, a key primary input, to manufacture DME and facilitate production on a larger scale. New Oriental Energy is currently the largest producer of DME in the Hunan Province with 50,000 tons per annum of production capacity, and its production capabilities are being fully utilized.

The most recent expansion is expected to yield approximately 100,000 tons of incremental annual capacity and is expected to be completed by the middle of calendar 2007. As part of these initial stages of expansion, the Company has established the necessary water supply, drain and gas pipes while securing the electric appliances and meters. Additionally, the construction of a 1000M(3)DME sphere and 2x3000M(3)DME storage and metering tank is also complete. Management expects that the total capital expenditure to complete this phase of growth is estimated at approximately $700,000. In addition, it is estimated the Company will spend a total of $10.2 million through 2010 when its facility is expected to accommodate 600,000 tons of annual DME production.

"New Oriental Energy is quickly becoming a recognized manufacturer of alternative fuels in China," commented Mr. Chen Si Qiang, the Company's Chief Executive Office. "By leveraging our strong brand reputation, distribution channels and cash flow from our existing chemical business, we have been able to utilize these assets to increase our production of alternative fuels such as methanol and DME. The demand trends within China for alternative fuels are rapidly increasing as the Government seeks to reduce the country's dependence on foreign oil while improving the overall air quality, which has been evidenced by growth in DME sales this year. We believe we are well positioned to capitalize on these initiatives and grow our overall alternative fuel revenue base."

About New Oriental Energy and Chemical

New Oriental Energy is an emerging alternative fuel and specialty chemical manufacturer based in Henan, China. The company is focused on the production of Dimethyl ether (DME), methanol and fertilizer products, and expects to begin production of biodiesel within the next year. The Company sells its products primarily through a network of distribution partners.

Safe Harbor Statement:

This press release contains forward-looking statements concerning New Oriental Energy and Chemical Corp.'s business and products. The actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. New Oriental Energy and Chemical Corp. undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

 Corporate Contact:  New Oriental Energy & Chemical Corp. Mr. Wang Gui Quan President Xicheng Industrial Zone of Luoshan, Xinyang Henan Province, The People's Republic of China Tel: (011-86) 376-2169211 Fax: (011-86) 376-6818152  For Investors:  Robert Agriogianis Focus Asia Partners Bob@focusasiapartners.com PH (973) 966-2983 Cell (973) 216-6949 Fax (973) 966-6252  

SOURCE: New Oriental Energy & Chemical Corp.

Source: MARKET WIRE

More News in this Category