Gulf Resources Announces the Completion of the Flood Prevention Project
January 30 2024 - 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
completed its approximately $50 million flood prevention project
recently. This project was implemented for safeguarding its bromine
facilities.
While implemented to protect its bromine facilities and prevent
potential flooding that could harm the wells, aqueducts and crude
salt pans at the Company’s plant, the Company expects two long-term
benefits:
1. Cost Savings
- Over the past six years, the Company has spent approximately
$47 million repairing its facilities after two separate typhoons.
This amount is close to the total cost of the flood prevention
project. The Company believes the flood prevention project may
mitigate the risks and associated expenses related to future
storms-induced flooding and prevent major flooding in the future,
ultimately saving money in the long run.
2. Enhanced Utilization
- Through the flood prevention project, the Company believes it
may be able to drill in certain low-lying areas that were
previously not suitable for wells. This expansion may result in
higher utilization rates, particularly as the markets for bromine
and crude salt improve.
The Company aims to assure investors that all decisions
regarding the flood prevention project were reviewed by the Board
of Directors of the Company. The process involved competitive
bidding, and the Company believes that no manager, director, or
employee personally gained from these expenditures.
For more information about the flood prevention project, please
see also the Company’s Current Report on Form 8-K previously filed
with the U.S. Securities Exchange Commission on November 17,
2023.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through four wholly-owned
subsidiaries, Shouguang City Haoyuan Chemical Company Limited
(“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”),
Daying County Haoyuan Chemical Company Limited (“DCHC”) and
Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). 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. Through SHSI, the Company manufactures and sells crude
salt. 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 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 China, 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 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 Data
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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