Gulf Resources Announces the Receipt of Governmental Notification to Temporarily Close Bromine Facilities Until February 10, ...
December 12 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 that it has
received a notification from the government of Shouguang City,
pursuant to which all bromine facilities in Shouguang City will be
closed until February 10,2020.
On November 25, 2019, the government of Shuoguang City issued a
notice ordering all bromine facilities in Shouguang City to
temporarily stop production from December 16, 2019 to February 10,
2020, while the Company received such notice recently.
We believe this seasonal closure ordered by the government is
part of governmental action plan to curb air pollution. Our company
had intended to commence production in factories #1 and #7, but we
will delay the opening of the production until February 10, 2020 in
light of the governmental order.
We don’t anticipate the closure of about two months in winter
will significantly impact the Company’s business. As we stated in
the third quarter earnings conference call, “Winter is a slow
seasonal period for bromine production, because of Chinese New Year
and given the fact that some crude salt products cannot be
processed during the coldest months.” Chinese New Year of 2020
falls on January 25, 2020 and the festival will last approximately
up to two weeks. Under normal circumstances, facilities are closed
during the holidays. Once this temporary closure is over, we intend
to open factories #1 and #7 and gear up production steadily.
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, 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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