Gulf Resources is planning to begin construction of its new Yuxin Chemical factory in the second quarter 2020. Construction is expected to take approximately one year. It is expected that it will take additional 6 months to complete equipment installation and testing. The company expects to begin trial production at the beginning of 2022. This factory will be expected to focus more on the higher margin pharmaceutical intermediate products. While this factory will be smaller than the combined two old factories, the company expects it to make higher net profit margin.

 

The company expects the demand and pricing for bromine to increase. While sales of some downstream products are down, bromine is increasingly being used as a disinfectant for humans and animals as well as in pharmaceutical intermediate products. The company expects this trend will lead to increasing demand and strong pricing for bromine.

 

The company also believes that its bromine business will grow strong. To the Company’s knowledge, some of the bromine factories in China are still closed, and some of them may be closed permanently due to the strict measures being taken by the Chinese government in an effort to battle against environmental pollutions. 

 

Gulf Resources deals in chemical solutions for a wide range of industries, including petrochemical companies, power generation companies, paper manufacturers, and pharmaceutical manufacturers. The company is one of the largest producers of bromine in China.