Gulf Resources Announces Damages and Rectification Plan From Typhoon Lekima
September 24 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 the Damages
and Rectification Plan from Typhoon Lekima.
On August 11, 2019, Typhoon Lekima struck Shandong Province.
Lekima was the fifth largest storm to hit the Chinese mainland
since 1949. It was also the second major storm in two years to make
a direct hit on Shandong Province.
According to the China Daily, “Shouguang city, (where Gulf is
headquartered) also called China's town of vegetables, was severely
hit by rain. A video footage on the internet showed some vegetable
greenhouses submerged in water on Sunday.”
According to Wikipedia, ““Because Lekima looped around Shandong
for days, it brought heavy rainfall in the province. Daily rainfall
in Linqu County, (which is in the same prefecture as our
facilities) reached 15.2 inches.”
As a frame of reference, the volume of rain was twice that of
the typhoon in 2018.
Gulf Resources has placed photographs on our website so that our
shareholders can directly view the damage.
(http://www.gulfresourcesinc.com/corporate-ppt.html)
Unfortunately, of all of our factories, the ones that sustained
the greatest damage were No.1 and No.7, our factories that were
already in operation.
The cost of repairing these two factories themselves is
relatively small, approximately $0.15 million. Management and
employees have conducted all the repair work and are almost
finished.
The damage to the wells, salt fields and aqueducts is more
severe, largely because the land area on which they are situated
was completely flooded.
Management has hired an outside vendor to repair and rectify the
wells, salt fields and aqueducts for these two factories. This work
is expected to take two more months. The approximate cost will be
$5.7-$7.2 million.
During this period of time, these factories will not be in
operation. However, as soon as the repairs are completed, we will
resume production and will not have to go through an additional
approval process.
Our other factories and fields sustained less damage compared to
factories No.1 and No.7. We are continuing to work with the
government on getting approvals for the remaining factories and do
not at the present time foresee any significant problems. However,
the issues caused by the typhoon and the floods may slow these
approvals.
The land where our chemical factory will be located did not
incur any significant damage. While we have not yet received
approval for construction, we believe we will receive this approval
in the near future.
The typhoon did not impact our facilities in Sichuan Province.
We have received city and county approval for our drilling project.
One of our senior managers has moved to the provincial capital to
assist in obtaining the approval.
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.comDirector
of Investor RelationsHelen Xu (Haiyan
Xu)beishengrong@vip.163.com
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