Gulf Resources Announces the Opening of Two Bromine and Crude Salt Facilities
April 02 2019 - 8:30AM
Gulf Resources, Inc. (Nasdaq:GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt and
specialty chemical products in China, today announced it
received approval from the PRC local government to open its
bromine factories #Subdivision of Factory No. 1 and #7 ( the
combination of Factory #5 and #7) on March 29, 2019. These
facilities have passed all approvals both in the factories
themselves and in the mines and crude salt ponds. The Company
expects to begin operations of its bromine factories # Subdivision
of Factory No. 1 and #7 within this week or next week. Factory #7
is expected to have the highest production capacity among our
factories.
Mr. Liu Xiaobin, CEO of Gulf Resources stated, “After 18 months
of work to meet the new government’s requirements, we are extremely
pleased to be able to open the first of our factories and begin
production.”
Our Factories #1 and #9 have passed all approvals for the work
inside the factories. However, the local government has asked for
some additional work to be done outside the factories on the
bromine wells and aqueducts. We believe that this work is covered
in the budget estimates that were presented on our 2018 year end
earnings conference call and press releases.
We expect that the work on factories #1 and #9 will be completed
soon. Since these factories have passed rectification inside the
factories. We expect to receive full approval in the next one to
two months and to commence production in these factories by the end
of Q2 2019.
The remaining three factories including: #2, #8 and #10
have both internal and external issues. However, we believe that
these issues can be resolved within the second half of 2019. We
expect to have all seven factories and related facilities to be in
operation by end of year 2019.
“Some of our shareholders have asked why we did not walk away
from the bromine business and use our capital for another
business,” Mr. Liu Xiaobin stated, “The reason is we believe this
business will prove to be profitable. Bromine prices are at record
highs. To our knowledge, some facilities have been approved for
reopening, some smaller companies lack funding for full
rectifications. We expect that the problems we have encountered in
meeting the new government regulations will make our industry and
our company more profitable. We appreciate the support of our
shareholders and expect to continue communicating with you as
events transpire.”
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through three wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
(“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”),
and Daying County Haoyuan Chemical Company Limited (“DCHC”). The
Company believes that it is one of the largest producers of bromine
in China. Elemental Bromine is used to manufacture a wide variety
of compounds utilized in industry and agriculture. Through SYCI,
the company manufactures chemical products utilized in a variety of
applications, including oil and gas field explorations and
papermaking chemical agents, and materials for human and animal
antibiotics. DCHC was established to further explore and develop
natural gas and brine resources (including bromine and crude salt)
in China. For more information, visit www.gulfresourcesinc.com.
Forward-Looking Statements
Certain statements in this news release contain forward-looking
information about Gulf Resources and its subsidiaries business and
products within the meaning of Rule 175 under the Securities Act of
1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and
are subject to the safe harbor created by those rules. The actual
results may differ materially depending on a number of risk factors
including, but not limited to, the general economic and business
conditions in the PRC, future product development and production
capabilities, shipments to end customers, market acceptance of new
and existing products, additional competition from existing and new
competitors for bromine and other oilfield and power production
chemicals, changes in technology, the ability to make future
bromine asset purchases, and various other factors beyond its
control. All forward-looking statements are expressly qualified in
their entirety by this Cautionary Statement and the risks factors
detailed in the company's reports filed with the Securities and
Exchange Commission. Gulf Resources undertakes no duty to revise or
update any forward-looking statements to reflect events or
circumstances after the date of this release.
CONTACT: Gulf Resources, Inc.
Web: |
http://www.gulfresourcesinc.com |
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Director of Investor
Relations |
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Helen Xu |
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beishengrong@vip.163.com |
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