June 22, 2010 (FinancialWire) — Gulf Resources, Inc. (NASDAQ: GFRE), a maker of bromine, crude salt and specialty chemical products in China, said it has completed the construction of its new chemical additives production line for wastewater treatment and started trial production.

The company anticipates a revenue contribution of around $9 to $10 million in the first year of operation with an estimated gross profit margin of around 40%. This reflects around $3.2 million in incremental revenue for fiscal year 2010, which was included in the revenue guidance of $146 million to $150 million announced on April 14, 2010 and reaffirmed on May 14, 2010.

Gulf said that the new production line is expected to have an annual production capacity of 3,000 metric tons of chemical additives and will start formal production around two months from the start of the trial production.

China-based Gulf Resources operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical and Shouguang Yuxing Chemical Industry.

The company makes bromine, which is used to manufacture a range of compounds utilized in industry and agriculture.

Through SYCI, the company manufactures chemical products utilized in a range of applications, including oil & gas field explorations and as papermaking chemical agents.

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