Gulf Resources, Inc. (GFRE.OB) announced that the company’s wholly owned subsidiary company, ShouGuang City YuXin Chemical Company, has signed a letter of intent with DAQING Petrochemical General Manufacture. This Letter of Intent specifies that DAQING will purchase an additional 10,000 tons of oil refining additives during the year 2008. The anticipated level of purchases would generate approximately $20 million in revenues for the Company.
DAQING Petrochemical Complex Office, a subsidiary of China National Petroleum Corporation [CNPC], is one of the largest Petrochemical Joint Enterprises in China. DAQING’s main businesses include Petrochemical, Petrochemical Extended Processing, and Project Design and Project Construction.
Mr. Ming Yang, CEO of Gulf Resources, Inc., commented, “The consummation of this Letter of Intent between our subsidiary, YuXin Chemical Company, Ltd. and DAQING Petrochemical General Manufacture, provides further confirmation that our Company’s products have achieved acceptance by large-scale Petrochemical enterprises in China.”
Mr. Yang added, “In addition, we have successfully established Gulf Resources as a reputable brand, supported by a strong R&D team, a broad portfolio of products and core production capabilities, in addition to a growing pipeline of new products focused on large-scale oil fields both domestically and internationally. We believe these relationships demonstrate both our position in the market and our ability to significantly grow our business in 2008 and beyond. The revenues associated with this Letter of Intent were a component of our previously issued financial guidance for calendar 2008.”
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