Gulf Resources Announces Receipt of Final Approval for Construction of its Shouguang Yuxin Chemical Factory
May 27 2020 - 8:30AM
Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources" or the
"Company"), a leading manufacturer of bromine, crude salt,
specialty chemical products, and natural gas in China today
announced it received final approval for the construction of its
new Shouguang Yuxin Chemical factory on May 25,2020 due to the
COVID-19 in China and the Company commenced the construction at
Bohai Marine Fine Chemical Industry Park, Shouguang City on May 26,
2020.
The Company expects that it will take approximately one year to
complete the construction and additional 6 months to complete
equipment installation and testing. The Company currently expects
to begin trial production at the new factory at the beginning of
2022.
Shouguang Yuxin Chemical plans to focus more on producing higher
margin, bromine-based pharmaceutical intermediate products and
intermediates for disinfection product.
Bromine products play a very positive role in protecting and
treating diseases, such as the COVID-19. These products are used
for both sterilization and treatment.
The main disinfection products include Dibromohyne disinfectant
and Bromochlorohyne disinfectant.
The main drugs used in the treatment of diseases in China
include bromhexine, ambroxol, cotrimoxazole and cephalosporins.
In addition, since bromine ions have the ability to decrease the
sensitivity of the central nervous system, they are used for
ingredients in sedatives, anti-epileptics, and tranquilizers. They
are also used in treatments of heart problems, thyroid
hyperactivity, pneumonia, and cocaine addiction, among others.
The Company believes that the use of bromine in producing
intermediates for disinfection product and bromine-based
pharmaceutical intermediate products will offer it significant
opportunities to build this high margin business.
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
StatementsCertain 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, the risks associated
with the COVID-19 pandemic outbreak, 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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