Gushan Environmental Energy, a Chinese producer of biodiesel, has announced that its Beijing plant’s additional production facilities have commenced production, adding 50,000 tons to the company’s annual biodiesel production capacity.

As a result, these additional facilities have doubled the total annual biodiesel production capacity of the Beijing plant from 50,000 tons to 100,000 tons, claims thecompany.

According to the company, it plans to open new biodiesel plants in Chongqing and Hunan in the second quarter of 2009, each with an initial target annual biodiesel capacity of 30,000 tons; and to construct a new plant in Sichuan, with a target annual biodiesel capacity of 50,000 tons.

In February 2009, Gushan commenced preparatory work for the construction of its new plant in Sichuan, which is targeted to commence production in the first half of 2010. Given the uncertain macro environment as a result of the global financial crisis, Gushan will be closely monitoring its market situation and will make changes to its expansion plans if necessary.

The company claimed that, with the commencement of operations at the new facilities of the Beijing plant and its existing five production facilities, located in the Sichuan, Hebei and Fujian provinces and Beijing and Shanghai, Gushan’s aggregate annual biodiesel production capacity is 340,000 tons.