General Biodiesel puts Chinese JVs on hold

U.S.-based General Biodiesel Inc. (GB) has placed its biodiesel ventures in China on hold because of price controls in the country that company officers said would leave it with very little profit. According to Chief Executive Officer Yale Wong, as the Chinese government controls the purchase price of biodiesel, GB would not have much room for higher margins. The company is therefore waiting for policy changes that would give more legroom. GB had gone into several joint ventures with local Chinese companies last year to build biodiesel plants in Shanghai, Guizhou, Wujin and Guangzhou. With these on hold, the company is looking for joint venture opportunities in other Asian countries such as Indonesia and Singapore. (July 2, 2009)