The demand for specialty chemicals continues to be strong in China, driven by consumer demand for both everyday and more sophisticated products. China is a rapidly growing specialty chemicals market, second only in size to that of the U.S. In addition, biodiesel continues to be an early-mover, relatively clean energy alternative to imported oil. China Clean Energy is well-positioned in both segments to capitalize upon their strong trends. We are seeking to acquire an upstream feedstock supplier in the second half of 2011 to secure supply and expand our gross margins. Our raw materials sourcing sets us apart as we use renewable resources to produce our specialty chemicals and biodiesel unlike other industry participants who use depleting commodities such as oil, natural gas or coal. We expect to be able to finance an eventual transaction with cash on hand as well as cash flow from operations.
Our increased production capacity as well as our new facility's geographical positioning will continue to promote strong operating results. We plan to continue to deliver positive results in the quarters ahead. We reiterate our guidance for 2011, and expect revenue and operating income in 2011 to be approximately $75 million and $14 million, respectively. We would also expect to see adjusted earnings reach $0.36 per fully-diluted share in 2011.
The macroeconomic environment in China remains positive, and we are excited with the opportunities to continue to deliver positive results in the quarters ahead. We expect our revenue and operating income in 2011 to be approximately $75 million and $14 million, respectively, as we benefit from our increased capacity as well as improving sales mix. We would also expect to see adjusted earnings reach $0.36 per fully-diluted share in 2011. As we look to the future, we hope to leverage our strengthening balance sheet and improving free cash-flow position to acquire upstream feedstock suppliers in the second half or 2011, with the goal to expanding our gross margins and securing feedstock supply. We believe that pursuing a partially or fully integrated upstream strategy will reduce the volatility of our operating results and maximize shareholder value in the long-run. We are currently actively searching for acquisition candidates, and we expect to be able to finance an eventual transaction with cash on hand as well as cash-flow from operations.
China Clean Energy expects revenue to reach $75 million and operating income to reach $13 million in fiscal year 2011. "During 2010 we gradually and successfully ramped up our Jiangyin plant to full capacity, and improved the quality of our products as a result of increased scale and more advanced technology in our manufacturing process. Going into 2011 we expect to make fuller use of our expanded capacity. We also expect to increase shipments of high margin products which command premium pricing, including high purity dimer acid and high performance adhesives. As a result, we are hopeful to deliver improved top- and bottom-line results for the year."