Gulf Resources receives $7.5 million in orders for environmentally-friendly chemicals
March 9, 2009
Gulf Resources, Inc., a leading manufacturer of bromine, crude salt and specialty chemical products in China, announced that the Company’s wholly-owned subsidiary, Shouguang Yuxin Chemical Industry Co., signed an agreement with Kuerle City Xingdong Trading Co., Ltd., 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 metric tons of environmentally-friendly solid lubricant from March 2009 to December 2009. In September, 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.