Hongbao Resources (01131) spent $2.97 million to acquire the American biodiesel plant.

Hongbao Resources (01131) announced that on December 14, 2016, the Group completed the acquisition of a biodiesel plant in Arkansas, USA through a subsidiary, at a cost of US$ 2.97 million.

Immediately after the completion of the acquisition, the Group and Solfuels Holdings Pte
Ltd. will beneficially own 51% and 49% of the rights and interests of the biodiesel plant respectively. The biodiesel plant has an annual production capacity of 137,000 metric tons and is expected to be put into operation in April 2017.

The Group is a supplier of integrated energy and shipping solutions, and Solfuels is a leading and experienced biofuel operator, operating a biodiesel plant in the United States. The acquisition marks the first time that the Group has entered the field of renewable energy.

According to the company, with Solfuels’ operational expertise, the group expects to transform the biodiesel plant to adapt to a variety of plateau materials, including yellow oil, animal fat, inedible corn oil and refined vegetable oil, and reduce production costs. The group believes that the production of this biodiesel plant will meet the increasing demand for renewable energy in the US market.