Gulf Resources notified by government to temporarily close bromine facilities

Gulf Resources announced that it received notification from the government of Shouguang City on December 22, 2023, pursuant to which its all bromine and crude salt facilities will be temporarily closed from December 25, 2023 to February 20, 2024. To comply with such notification, the company expects to temporarily halt production during this period. “We believe this seasonal closure aligns with the government’s efforts to address winter air pollution and enhance the overall efficiency of brine resources,” the company stated. Compared to the 2023 closure from December 10 to February 1, the closure in 2024 means that the company will have an additional 15 days of production in the fourth quarter of 2023 and will lose 19 days of production in the first quarter of 2024. “Winter typically sees slower bromine sales as our customers are closed for Chinese New Year holidays, leading to fewer orders before their closure. Further, processing crude salt becomes challenging during the coldest months because of low temperatures.”