Zhuoyue New Energy to sidestep EU duties with overseas biofuel plants

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Chinese biofuel giant, Zhuoyue New Energy, is expanding its global footprint in a strategic move to circumvent impending anti-dumping duties imposed by the European Union.

Chinese biofuel giant, Zhuoyue New Energy, is expanding its global footprint in a strategic move to circumvent impending anti-dumping duties imposed by the European Union.

The company has unveiled plans to establish biofuel refineries in Saudi Arabia and Singapore, focusing on the production of sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO), and biodiesel for marine applications.

A joint venture, with a 70% stake held by local partners, is slated for Saudi Arabia to undertake the construction of a new biofuel production facility.

In addition to the joint venture in Saudi Arabia, Zhuoyue is also making a significant investment in Singapore. The company announced plans to increase the capital of its wholly-owned subsidiary, Excellence New Energy (Singapore), by $20m. This capital injection will be used to develop a biodiesel project in Singapore.

These expansion plans come in response to the European Commission’s preliminary ruling earlier this month, which proposed a provisional anti-dumping duty of 25.4% on biodiesel products manufactured by Zhuoyue and its affiliates.

With the duty set to take effect on August 16, the company is evidently seeking to mitigate the potential financial impact on its exports to the EU. The final anti-dumping ruling is anticipated in February of the following year.

Europe has been a primary market for Zhuoyue, accounting for approximately 90% of its biofuel exports. The imposition of duties would undoubtedly create significant challenges for the company’s business operations within the region.

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