Global Processing

Chinese company adds new chemical additives production line for wastewater treatment

January 4, 2010
In a press release statement, Gulf Resources, Inc., a leading manufacturer of bromine, crude salt and specialty chemical products in China, announced the construction of a new chemical additives production line for wastewater treatment. The company expects to start production in July of 2010 with chemical additives production capacity of 3,000 metric tons per year. The new production line will be located in their Yuxing Chemical Plant and they estimate that it will contribute up to $10 million in revenues with an estimated gross profit margin over 40 percent in the first year of operation. The market capacity for wastewater treatment additives in China was about 50,000 metric tons in 2009, and is expected to increase at an annual rate of about 15 percent over the next few years due to the Chinese government''s focus on environmental protection and efforts to increase the amount of safe drinking water. China''s Ministry of Environmental Protection recently announced plans to invest RMB 90 billion to construct sewage treatment systems aimed at keeping drinking water safe. Pricing for chemical additives has been rising in recent months due to increased demand, reaching $21,000 per metric ton in the fourth quarter of 2009.