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SHOUGUANG, China, March 18, 2021 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today provides updates on its business operation.
On November 30, 2020, Gulf Resources announced that the government of Shouguang City, ordered that all bromine facilities be temporarily closed from December 25, 2020 until February 19, 2021. The Company believed the seasonal closure ordered by the government was part of governmental action plan to curb air pollution in the winter and improve the comprehensive development efficiency of brine resources. On February 19, 2021, as planned, the company reopened its four operating bromine and crude salt factories.
After the reopening, it took three to four days for the Company to test the equipment and begin production. Since then, production has ramped up. It is currently at a level similar to its level in middle to late December 2020.
At the time of the temporary closure, bromine was sold at RMB33,332 per tonnes. The current bromine selling price is approximately RMB34,500 per tonnes, up approximately 3.5% since December 2020.
While crude salt production during winter months can be impacted by seasonally cold weather, the current bromine selling prices are almost double their low of RMB16,800 in October 2014 and relatively close to their all-time high of RMB34,970 in May 2019.
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.
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.
Director of Investor Relations
Helen Xu (Haiyan Xu)