NEW YORK and SHANDONG, China, April 8
/PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (Nasdaq: GFRE)
("Gulf Resources" or the "Company"), a leading manufacturer of
bromine, crude salt and specialty chemical products in China, today announced that the construction
of a production line for wastewater treatment chemical additives at
its Shouguang Yuxing Chemical Industry Co., Limited ("SYCI")
location is proceeding according to plan. The Company expects to
complete the process and start production in July 2010.
The Company first announced the construction of this new
production line in January 2010 and
expects that it will contribute approximately $9 to $10 million in revenues in the first year
of operation with an estimated gross profit margin over 40% going
forward. Total capital expenditure for the new production line is
expected to be approximately $8 to $10
million, of which the Company has expended $6 million so far. When completed, the Company
expects the new production line to have an annual production
capacity of 3,000 metric tons of chemical additives.
"We believe that the demand for wastewater treatment chemicals
will grow fast in the next few years together with the Chinese
government's increased awareness of environmental protection
issues, as reflected by the government's plan to invest
RMB 90 billion ($13.2 million) in the next two to three years in
domestic wastewater treatment systems. Gulf Resources plans to
capture this opportunity and leverage our technology and bromine
resources in order to move up the value chain, increase
profitability of our chemical products and ultimately maximize
shareholder value," said Mr. Xiaobin
Liu, CEO of Gulf Resources.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
("SCHC") and Shouguang Yuxing Chemical Industry Co., Limited
("SYCI"). 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 & gas field explorations and as
papermaking chemical agents. For more information about the
Company, please visit http://www.gulfresourcesinc.cn .
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.
For more information, please contact:
Gulf Resources, Inc.
David Wang, VP of Finance
Email: gfre.2008@vip.163.com
Helen Xu
Email: beishengrong@vip.163.com
Web: http://www.gulfresourcesinc.cn
CCG Investor Relations Inc.
Linda Salo, Sr. Financial Writer
Tel: +1-646-922-0894
Email: linda.salo@ccgir.com
Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
SOURCE Gulf Resources, Inc.