Zhuoyue shares fall despite new biofuel plans to avert EU Tariffs

In China, Yicai reports shares of Zhuoyue New Energy dropped 2.4% in Shanghai, marking a 40% decline this year, despite the company’s announcement of new biofuel investments in Singapore and Saudi Arabia. This move aims to mitigate the impact of the European Union’s new anti-dumping duties.

Zhuoyue, a leading Chinese biodiesel producer, faces a 25.4% provisional anti-dumping duty on its biodiesel exports to Europe, set to take effect on Aug. 16. In response, Zhuoyue plans to invest SGD 50 million (USD 37.3 million) in a new Singapore biodiesel plant, with an initial annual capacity of 100,000 tons starting early next year, eventually reaching 200,000 tons. Additionally, Zhuoyue will establish a joint venture in Saudi Arabia to produce biofuels, including sustainable aviation fuel and biodiesel for marine use.

The company aims to reduce production costs, expand into non-EU markets, and enhance biodiesel application in marine fuels. Despite exporting over 90% of its biodiesel to Europe last year, Zhuoyue is seeking alternative strategies to sustain its operations and growth amid the new EU tariffs.

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