SHOUGUANG, China, Sept. 24, 2019 (GLOBE NEWSWIRE) -- 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 the Damages and Rectification Plan from Typhoon Lekima.
On August 11, 2019, Typhoon Lekima struck Shandong Province. Lekima was the fifth largest storm to hit the Chinese mainland since 1949. It was also the second major storm in two years to make a direct hit on Shandong Province.
According to the China Daily, “Shouguang city, (where Gulf is headquartered) also called China's town of vegetables, was severely hit by rain. A video footage on the internet showed some vegetable greenhouses submerged in water on Sunday.”
According to Wikipedia, ““Because Lekima looped around Shandong for days, it brought heavy rainfall in the province. Daily rainfall in Linqu County, (which is in the same prefecture as our facilities) reached 15.2 inches.”
As a frame of reference, the volume of rain was twice that of the typhoon in 2018.
Gulf Resources has placed photographs on our website so that our shareholders can directly view the damage. (http://www.gulfresourcesinc.com/corporate-ppt.html)
Unfortunately, of all of our factories, the ones that sustained the greatest damage were No.1 and No.7, our factories that were already in operation.
The cost of repairing these two factories themselves is relatively small, approximately $0.15 million. Management and employees have conducted all the repair work and are almost finished.
The damage to the wells, salt fields and aqueducts is more severe, largely because the land area on which they are situated was completely flooded.
Management has hired an outside vendor to repair and rectify the wells, salt fields and aqueducts for these two factories. This work is expected to take two more months. The approximate cost will be $5.7-$7.2 million.
During this period of time, these factories will not be in operation. However, as soon as the repairs are completed, we will resume production and will not have to go through an additional approval process.
Our other factories and fields sustained less damage compared to factories No.1 and No.7. We are continuing to work with the government on getting approvals for the remaining factories and do not at the present time foresee any significant problems. However, the issues caused by the typhoon and the floods may slow these approvals.
The land where our chemical factory will be located did not incur any significant damage. While we have not yet received approval for construction, we believe we will receive this approval in the near future.
The typhoon did not impact our facilities in Sichuan Province. We have received city and county approval for our drilling project. One of our senior managers has moved to the provincial capital to assist in obtaining the approval.
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.
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.
CONTACT: Gulf Resources, Inc.
Web: http://www.gulfresourcesinc.com
Director of Investor Relations
Helen Xu (Haiyan Xu)
beishengrong@vip.163.com