Gulf Resources Commences Operations After Relocation of Factory No. 4
SHANDONG, China, Dec. 16, 2011 /PRNewswire-Asia-FirstCall/ — 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 the relocation of its bromine Factory No.4 has been completed and resumed full operations on December 16, 2011.
The relocation of Factory No.4 was completed in mid-November 2011 and the factory conducted test running operations mode for one month. The optimal production of Factory No.4 is 3,801 tons per annum as indicated in a production capacity appraisal report prepared by a third-party independent international appraisal firm in November 2011.
In mid-May 2011, the government requested to recall the leased land where the Company’s original Factory No. 4 was located for civil redevelopment and agreed to lease another parcel of land to the Company near to the original factory. The operations of the original Factory No. 4 stopped in early July 2011 as the original facilities were demolished and useful plant and machinery were relocated to the new factory site. The Company received compensation of RMB8,599,835 (approximately $ 1.3 million) from the government for relocation expenses and maintenance costs.
About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”) and Shouguang Yuxin 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.
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.
Gulf Resources, Inc. CCG Investor Relations Inc. Helen Xu David Rudnick, Account Manager Email: email@example.com Phone: +1-646-626-4172 Web: http://www.gulfresourcesinc.cn Email: david.rudnick Crocker Coulson, President Phone: +1-646-213-1915 Email: firstname.lastname@example.org Web: http://www.ccgirasia.com
SOURCE Gulf Resources, Inc.