SHIHEZI, China, Oct. 15, 2018 /PRNewswire/ -- Daqo New Energy
Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a
leading manufacturer of high-purity polysilicon for the global
solar PV industry, today announced that it has completed the
construction and installation of its Phase 3B polysilicon production facility in Shihezi,
Xinjiang and has begun pilot production. The Company expects the
Phase 3B facility will ramp up to
full production capacity and expand its total production capacity
to 30,000 MT by the end of the first
quarter of 2019.
Once Phase 3B has reached full
production capacity, a power purchase agreement with the
local electric utility will reduce the Company's electricity rates
by approximately 18% from the current levels, further lowering the
Company's polysilicon production cost. With lower electricity
rates, higher manufacturing efficiency, greater economies of scale,
and enhanced equipment and process, the Company expects the overall
total cost of polysilicon production for its Xinjiang facilities to
decrease to approximately US$7.50 per
kilogram.
Separately, the Company has launched a debottlenecking project
to modernize some of its current Chemical Vapor Deposition (CVD)
furnaces and upgrade other production equipment which will allow it
to increase efficiency and production volume. The Company expects
to complete the debottlenecking project and increase its annual
capacity to 35,000 MT by the end of
June, 2019.
The Company's Phase 4A capacity expansion project is currently
under construction and is expected to begin pilot production in the
fourth quarter of 2019. The Company expects to ramp up Phase 4A to
full production in the first quarter of 2020 which will expand its
total production capacity to 70,000
MT. When production from Phase 4A is fully ramped up, the
Company's electricity rates will decrease further based on the
agreement with the local electric utility, and the overall total
cost of polysilicon production for its Xinjiang facilities is
expected to decrease to approximately US$6.80 per
kilogram.
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "I'd like
to thank the entire team in our Xinjiang polysilicon production
facilities for their hard work and dedication which enabled us to
successfully complete the construction and installation of Phase
3B on schedule. Phase 3B will not only increase our capacity and reduce
our costs, but also improve our product quality, allowing us to
achieve production capability of approximately 80% mono-crystalline
grade polysilicon, of which a half will be applicable for use in
N-type mono-crystalline solar cells. We believe this demonstrates
our long-term confidence in the solar PV industry, strong execution
capabilities, and commitment to our customers. We eagerly look
forward to the new era of grid parity in the global solar PV market
and believe it has the potential to significantly change the way
people produce and consume energy. We will continue to strengthen
our leading position in the industry by expanding capacities,
improving quality and reducing cost structure in order to meet the
growing demand for our ultra-high-quality polysilicon."
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the quotations from management in this announcement, as well as
Daqo's strategic and operational plans, contain forward-looking
statements. The Company may also make written or oral
forward-looking statements in its reports filed or furnished to the
U.S. Securities and Exchange Commission, in its annual reports to
shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Statements that are not historical facts, including
statements about the Company's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: the demand for photovoltaic products and the development
of photovoltaic technologies; global supply and demand for
polysilicon; alternative technologies in cell manufacturing; the
Company's ability to significantly expand its polysilicon
production capacity and output; the reduction in or elimination of
government subsidies and economic incentives for solar energy
applications; and the Company's ability to lower its production
costs. Further information regarding these and other risks is
included in the reports or documents that the Company has filed
with, or furnished to, the U.S. Securities and Exchange Commission.
All information provided in this press release is as of the date
hereof, and the Company undertakes no duty to update such
information or any forward-looking statement, except as required
under applicable law.
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.
Daqo's highly-efficient and technically advanced manufacturing
facility in Xinjiang, China
currently has a nameplate annual polysilicon production capacity of
30,000 metric tons, and the Company is undergoing a debottlenecking
project and a capacity expansion project and expects to increase
its annual polysilicon production capacity to 70,000 metric tons in
the first quarter of 2020.
For more information, please visit http://daqo.gotoip1.com/
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
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SOURCE Daqo New Energy Corp.