Press Releases

Gulf Resources Receives $7.5 Million in Follow-up Orders for Environmentally Friendly Chemicals

Published Mar 06th, 2009

New York & Shandong Province, March 6 2009  - Gulf Resources, Inc. (OTCBB: GFRE) (“Gulf Resources” or the “Company”), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that the Company’s wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”) on March 3, 2009 signed an agreement with Kuerle City Xingdong Trading Co., Ltd. (“Xingdong”), a distributor of additive materials for oilfields in Xinjiang autonomous region, to deliver environmentally friendly chemical products valued at approximately $7.5 million.
According to the purchase order, Gulf Resources will deliver 2,500 metric tons of environmentally friendly polyether lubricant, and 1,500 tons of environmentally friendly solid lubricant from March 2009 to December 2009.
In September 2008, Gulf Resources, through SYCI, began formal production at its new chemical production line with 5,000 metric tones of annual capacity of environmentally friendly additive products, including solid lubricant and polyether lubricant, for use in oil and gas exploration.  That same month, SYCI received an initial three-month purchase order from Xingdong to deliver 800 metric tons of its environmentally friendly oil and gas exploration additive products worth a total of $1.6 million. The Company’s environmentally friendly oil and gas exploration chemical products generated a gross profit margin of approximately 42% in 2008.
“The feedback from end customers regarding the quality and performance of the first round of chemical products sold through Xindong was excellent, resulting in these follow-up orders,” commented Ming Yang, Chief Executive Officer of Gulf Resources, “We expect to see solid growth in sales of our environmentally friendly chemicals products this year due to increasing oil and gas exploration activities in the Xinjiang autonomous region, the primary region for oil and gas exploration in China. By actively developing and expanding our high-end, higher margin chemical business parallel to our bromine and crude salt business, we are optimistic about maintaining our overall gross profit margin even though bromine prices may remain volatile in the first half of 2009.”
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 the People’s Republic of 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, please visit
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.
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