Gulf Resources, Inc. (GFRE) has become a leading provider of bromine, crude salt and produces an assortment of various specialty chemicals throughout China. The products that the company offers are necessary components for China’s flourishing oil and paper-making industries. Along with bromine, the company manufactures and supplies crude salt, which is primarily found in large quantities near the bromine brine wells.
In 2006 alone, Gulf Resources delivered 10,000 tons of oil and gases related chemical products, in addition to 7,000 tons of papermaking related chemical products. Gulf Resources is one of only six companies with a highly coveted Chinese license for bromine exploration, production and distribution. Although China consumes all the bromine produced domestically, and with the international market growing ever larger, Gulf Resource will capitalize on the growing demand for bromine with its large proven reserves in Shouguang, China.
Two projects that are currently underway are the Asset Purchase Agreement of Shouguang City Houxing Area, and an agreement that allows bromine-based compounds from Shouguang Yuxin Chemical Industry Company Ltd. (SYCI), to be utilized for Southwest Pharmaceuticals Production.
SYCI will become a supplier of a chemical compound named 3.4.5-Trimethoxybenzaldehyde (T.M.B), which provides Gulf Resources the opportunity to become vertically integrated while driving end customer costs. The Company has also signed an agreement to acquire all of the assets of Shouguang City Renia Area, a bromine producer, for approximately $6.4 million in total considerations. The lease covers 2,165 acres and expires in December, 2054. The property contains 200,000 to 250,000 metric tons of proven bromine reserves.
Based out of Shandong China, Gulf Resources, Inc. is a U.S. publicly traded company under the ticker GFRE (OTCBB). At the end of 2006 fiscal year, Gulf Resources had net assets of $8.88 million with total assets valued at over $13.98 million. As of October 2007, the market capitalization of the company was $198 million USD. Gulf Resources conducts its operations through its two wholly-owned subsidiaries: Shouguang City Hao Yuan Chemical Industry Co., Ltd. (SCHC) and Shouguang Yu Xin Chemical Industry Co., Ltd. (SYCI).
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