The Biolux company from Austria will build a wholly-owned project in March to produce biological diesel oil in Weihai City, East China's Shandong Province.

Officials with the municipal foreign trade and economic trade bureau said the project would take a total investment of 29.14 million U.S. dollars.

The project will process degummed rapeseed oil into biological diesel, with a designed annual production capacity of 250,000 tons. All of the products will be exported to the EU countries, with an estimated annual sales income of 2 billion yuan (246.6 million U.S. dollars), the municipal source said.

Biolux has also launched a joint-venture degummed rapseed oil processing project in Weihai, involving a total investment of 50.58 million U.S. dollars and an annual production capacity of 270,000 tons.