Gulf Resources Provides Update to Operations
December 17 2018 - 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 is providing its update
on operations.
Natural Gas: The Company first natural gas well
is now under testing production. The Company is testing the well to
see (1) if the equipment are fully functional through firing, and
eliminate potential safety hazards. (2) The procedures for further
mining is determined by testing the variations of various pressure
index, etc. Since we have begun testing, all of the tests have been
successful. Should the tests continue to be successful, we intent
to commence trial production by the end of 2018. We plan to be in
commercial production during 2019.
Bromine and Crude Salt: The Company
believes it will complete the rectification and clean-up by the
beginning of the first quarter 2019. While we still need approvals
for project approval, planning approval, land use rights approval
and environmental protection assessment approval, by working
closely with the local government, we think the approvals will come
shortly thereafter as long as our rectification and clean-up meets
the new government specifications. We hope to commence operations
in our seven factories by the end of the first quarter of 2019.
Chemical Factory: The Company is continuing to
work with the government on finalizing the plans for the new
chemical factory. Based on the responses from the government, the
Company continues believe that the factory will be constructed in
2019 and will begin operations at the beginning of 2020.
Mr. Liu Xiaobin, the CEO of Gulf, stated, “We are pleased to be
making progress on our natural gas project. We look forward to
trial production in the near future and commercial production after
that. We also continue to work on getting our bromine and crude
salt facilities back in operation. In the last three months,
bromine prices in China have increased approximately by 13.4%. Once
our facilities are open, we believe our business could be very
strong. We are also pleased with the progress we are making on the
approval for our new chemical factory.”
“This has been a very difficult time for our management and our
shareholders. However, we now have more visibility and believe that
each of our business segments has a strong future.”
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
Director of Investor Relations Helen Xu (Haiyan Xu)
beishengrong@vip.163.com
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