Benzinga | Dec 27, 2021 08:33AM EST

Gulf Resources Announces The Receipt Of Governmental Notification To Temporarily Close Bromine Facilities

Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today announced that it received an oral notification from the government of Shouguang City on December 23, 2021, pursuant to which all bromine facilities in Shouguang City will be temporarily closed from December 28, 2021 until February 21, 2022 8:00 AM China Time. To comply with such notification, the Company expects to temporarily stop production at its bromine facilities during the aforesaid period.



We believe this seasonal closure ordered by the government is part of governmental action plan to curb air pollution, which becomes worse in the winter, and improve the comprehensive development efficiency of brine resources.

The Company does not anticipate the closure will have a significant impact on the Company's business for the 4th quarter, for all of year 2021, or for 2022.

Further, in 2020-2021, the prior seasonal closure went from December 25, 2020 until February 19, 2021 8:00 AM China Time, there is the similar number of closure days ordered by these two government notifications.

In general, winter is a slow period for bromine sales. Our customers are closed for Chinese New Year, so they do not place large orders prior to their closure. Further, crude salt is difficult to be processed during the coldest months because of low temperatures.

For the 4th quarter and for year 2021, the closure takes place with only 4 days remaining in the year.

For 2022, the company's business is always closed for Chinese New Year, which begins on February 1, 2022.