CHONGQING, China, May 8, 2018 /PRNewswire/ -- Daqo New Energy Corp.
(NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading
manufacturer of high-purity polysilicon for the global solar PV
industry, today announced its Phase 4A expansion plan which will
increase its annual polysilicon production capacity by
35,000 MT to a total of
65,000 MT by the first quarter of
2020.
The Phase 4A expansion plan calls for the construction of a new
manufacturing facility adjacent to the Company's existing
facilities in Shihezi,
Xinjiang Uygur Autonomous Region in China. The design, construction and
installation of the new facility is scheduled to commence in
May 2018 with pilot production
expected to begin in the fourth quarter of 2019 before ramping up
to full 35,000 MT annual production
capacity in the first quarter of 2020. The capital expenditures for
the expansion project is estimated to be approximately RMB3.2 billion, which will be financed by the
Company's cash, cash flow from operations, bank loans, bonds,
prepayments and other sources. Phase 4A compliments Phase
3B of the Company's capacity
expansion which will increase the total annual production capacity
from 18,000 MT to 30,000 MT by 2019. The pace of construction of Phase
3B was accelerated during the first
quarter of 2018 and is now expected to be completed and begin pilot
production by the end of 2018 before ramping up to full production
capacity during the first quarter of 2019.
Mr. Longgen Zhang, Chief Executive Officer of Daqo New Energy,
commented, "The entirety of our Phase 4 expansion plan will expand
its manufacturing capacity by a total of 70,000 MT over two phases, Phase 4A and 4B, which will each consist of 35,000 MT of expanded manufacturing capacity. Phase
4A is an important milestone in our long-term expansion plan to
meet customer's surging demand and urgent needs for ultra-high
purity polysilicon. We produced 20,200
MT of polysilicon in 2017, representing a 12.2% increase
compared with our nameplate capacity of 18,000 MT. As Phase 3B
of our expansion plan enters the final stages, we have
strategically planned to add an additional 35,000 MT of annual manufacturing capacity by 2020,
which will increase our total production capacity to
65,000 MT. This new facility will
feature state-of-the-art equipment and technology and produce
ultra-high purity mono-crystalline-grade polysilicon, which is in
strong demand and only a very few Chinese producers have the
capability to produce. Furthermore,
this additional capacity will improve manufacturing efficiency and
is expected to further reduce costs by approximately US$1.70 per kilogram from current levels. With
capital expenditures for this facility expected to be at around
US$14.0-15.0 per kilogram, we believe
that this investment will yield long-term sustainable results for
our shareholders. We will continue to focus on serving our
customers with high quality products, improving polysilicon purity
and further reduce costs to strengthen our manufacturing leadership
in the industry."
ABOUT DAQO NEW ENERGY
CORP.
Daqo New Energy Corp. (NYSE: DQ)
("Daqo" or the "Company) is a leading manufacturer of high-purity
polysilicon for the global solar PV industry. Founded in 2008, the
Company is one of the world's lowest cost producers of high-purity
polysilicon and solar wafers. Daqo primarily sells its products to
solar cell and solar module manufacturers across the globe and is
also a leading supplier of ultra-high-quality polysilicon for the
production of high-efficiency mono-crystalline solar
products. Daqo's highly-efficient and technically advanced
manufacturing facility in Xinjiang Province currently has annual
polysilicon production capacity of 18,000 metric tons, and the
Company is undergoing capacity expansion to reach annual
polysilicon production capacity of 30,000 metric tons by the end of
2018. The Company also operates a solar wafer manufacturing
facility in Chongqing,
China.
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Phone: +86-187-1658-5553
Email: dqir@daqo.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
For more information about Daqo New Energy, please visit
http://daqo.gotoip1.com/
View original
content:http://www.prnewswire.com/news-releases/daqo-new-energy-announces-expansion-plan-to-increase-production-capacity-to-65-000-mt-by-2020--300644389.html
SOURCE Daqo New Energy Corp.