SHOUGUANG, China, Oct. 30, 2018 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt, specialty chemical products, and natural gas in China, today announces it has been working aggressively to complete the rectification required by the government and to make all of the repairs and rebuilding caused by Typhoon Winbiya in August in the seven bromine factories that are expected to receive government approval.
Gulf Resources believes most of the rectification issues related to crude salt and bromine at the remaining factories are resolved. While it still needs approvals for project approval, planning approval, land use rights approval and environmental protection assessment approval, the local government is actively working with us.
The company had signed a contract with a third party to help with the repair and rebuilding work for wells, brine water reservoirs and aqueducts. Virtually every employee of Gulf Resources, including senior management have been working together to repair the rest of the damages caused by the recent floods.
The company believes the rectification and repair process will require three additional months of work, largely because progress is slower during the winter months due to the weather. As noted in the second quarter conference call, the Company estimates the costs of repairing and rebuilding due to the flood damages will be $8-10 million.
The company believes its factories will be fully operational during the first quarter of 2019 if all approvals are obtained after completion of the rectification process and repairs.
Based on the current analysis, the company believes that some of the bromine production capacities in Shandong Province have permanently closed as a result of the more stringent environmental requirements. Bromine prices have continued to trend upward and are currently at RMB 32,000. With the weakness of the RMB, imports have become more expensive. Based on the reduced capacity and high import cost, the company believes the price of bromine will remain at high levels, which should enable the company to produce excellent returns.
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 risk 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)