Gulf Resources Inc (GURE)

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Gulf Resources Announces Receipt of Final Approval for Construction of its Shouguang Yuxin Chemical Factory
GlobeNewswire GlobeNewswire•May 27, 2020
SHOUGUANG, China, May 27, 2020 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt, specialty chemical products, and natural gas in China today announced it received final approval for the construction of its new Shouguang Yuxin Chemical factory on May 25,2020 due to the COVID-19 in China and the Company commenced the construction at Bohai Marine Fine Chemical Industry Park, Shouguang City on May 26, 2020.

The Company expects that it will take approximately one year to complete the construction and additional 6 months to complete equipment installation and testing. The Company currently expects to begin trial production at the new factory at the beginning of 2022.

Shouguang Yuxin Chemical plans to focus more on producing higher margin, bromine-based pharmaceutical intermediate products and intermediates for disinfection product.

Bromine products play a very positive role in protecting and treating diseases, such as the COVID-19. These products are used for both sterilization and treatment.

The main disinfection products include Dibromohyne disinfectant and Bromochlorohyne disinfectant.

The main drugs used in the treatment of diseases in China include bromhexine, ambroxol, cotrimoxazole and cephalosporins.

In addition, since bromine ions have the ability to decrease the sensitivity of the central nervous system, they are used for ingredients in sedatives, anti-epileptics, and tranquilizers. They are also used in treatments of heart problems, thyroid hyperactivity, pneumonia, and cocaine addiction, among others.

The Company believes that the use of bromine in producing intermediates for disinfection product and bromine-based pharmaceutical intermediate products will offer it significant opportunities to build this high margin business.