U.S. Chemical Production Industry Is Projected To Grow

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New York /PRNewswire/ - According to a report by the American Chemistry Council's (ACC), U.S. chemical production is expected to realize overall growth of 3.6 percent this year and 4.8 percent by 2018, while the previous year in 2016, U.S. chemical production grew only by 1.6 percent. The report emphasizes that output gains were led by agricultural chemicals, coatings and other specialties, as well as bulk petrochemicals and organics and plastic resins, while all areas were aided by renewed competitiveness arising from shale gas. Advances in manufacturing and exports during this year and after expected to increase demand for basic chemicals and improving manufacturing activity is projected to support growth for most specialty segments. Energy & Environmental Services Inc. (OTC: EESE), Gulf Resources, Inc. (NASDAQ: GURE), Valhi, Inc. (NYSE: VHI), Gevo, Inc. (NASDAQ: GEVO), Amyris Inc. (NASDAQ: AMRS)

"American chemistry is on the move," said Kevin Swift, Chief Economist of ACC and lead author of the report. "The competitive advantage the U.S. still maintains, driven by access to affordable and abundant supplies of natural gas, continues to offset significant headwinds, including an overall drop in business investment, a rebalancing in the oil and gas sector, soft export markets, and a high dollar." Swift also noted that production grew in every major chemical producing region in the U.S. during 2016. Over the next five years, the most dynamic growth will occur in the Gulf Coast region, followed by the Ohio Valley and Southeast regions. In the long-term, the U.S. chemical industry will grow faster than the overall economy, and by 2020, U.S. chemical industry sales are expected to exceed $1 trillion.

Energy & Environmental Services Inc. (OTC: EESE) just announced after the market close yesterday that, an operational update regarding one of the Company's objectives to offer chemical services to the energy industry in Mexico. EES Services, S.A. de C.V. (which is a separate independent Mexican company of a similar name that serves as a distributor for Energy and Environmental Services, Inc.) administered a successful three-month field test using Energy and Environmental Services chemicals to treat wells operated by Pemex, the national oil company of Mexico. Specialized chemicals were used to treat three marginal Pemex oil wells resulting in a sustained 50% increase in production on all wells over the three-month test period. Subsequently, Pemex approved the Company's specialty chemicals used in this test.

"We're very excited about the Pemex approval on the Energy and Environmental Services well treatment. The test showed very good results and there are several thousand wells that are suited for this service. Our company is now approved for a prestigious 5-year open contract with Pemex that is expected to begin this fall," stated José Hernández, Operations Manager, EES Services, S.A. de C.V.

"We are certainly excited to have reached this stage with EES Services, S.A. de C.V. and are looking forward to introducing our approved chemical products in Mexico," said Leon Joyce, President. "This opens up a new revenue stream and large market that we've never had before."

Gulf Resources, Inc. (NASDAQ: GURE) is a leading provider of chemical products in the People's Republic of China("PRC"). The Company operates through its two wholly-owned subsidiaries; Shouguang City Haoyuan Chemical Co. Ltd ("SCHC"), which primarily produces and distributes bromine and crude salt, and Shouguang Yuxin Chemical Industry Co. Ltd ("SYCI"), which focuses on manufacturing and selling chemical products. The Company's chemical products are currently utilized in a variety of applications, including oil and gas field exploration, papermaking chemical agents, wastewater treatment chemicals, and inorganic chemicals, such as industrial refrigeration chemicals. The Company has also developed proprietary pharmaceutical intermediary products that await commercialization.

Valhi, Inc. (NYSE: VHI) is engaged in the titanium dioxide products, component products (security products and recreational marine components), waste management and real estate management and development industries. The Company's Chemicals segment operates through Kronos. Kronos is a producer and marketer of titanium dioxide pigments (TiO2). TiO2 is used to impart whiteness, brightness and opacity to a range of products, including paints, plastics, paper, fibers and ceramics.

Gevo, Inc. (NASDAQ: GEVO) is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. The company recently announced that a bill recently signed by Arizona Governor Doug Ducey will let gas stations sell isobutanol-blended gasoline for on-road vehicles, enabling higher performing finished fuels with renewable content for drivers in the state.

Amyris Inc. (NASDAQ: AMRS) is the integrated renewable products company that is enabling the world's leading brands to achieve sustainable growth. The company is delivering its No Compromise® products across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. The company recently announced that it has entered into its first product development and production agreement with Koninklijke DSM N.V., the global science-based company active in health, nutrition and materials, to develop a food and nutrition molecule for which DSM is a major market provider.

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