The company first unveiled plans of construction of this new production line in January 2010 and expects that it will contribute approximately $9 to $10m in revenues in the first year of operation with an estimated gross profit margin over 40% going forward.
Total capital expenditure for the new production line is expected to be approximately $8 to $10m, of which the company has spent $6m so far. When completed, the company expects the new production line to have an annual production capacity of 3,000 metric tons of chemical additives.
Xiaobin Liu, CEO of Gulf Resources, said: “We believe that the demand for wastewater treatment chemicals will grow fast in the next few years together with the Chinese government’s increased awareness of environmental protection issues, as reflected by the government’s plan to invest RMB 90bn in the next two to three years in domestic wastewater treatment systems.
”Gulf Resources plans to capture this opportunity and leverage our technology and bromine resources in order to move up the value chain, increase profitability of our chemical products and ultimately maximize shareholder value.”
