CHONGQING, China, Aug. 4, 2015 /PRNewswire/ -- Daqo New Energy
Corp. (NYSE: DQ) ("Daqo New Energy" or the "Company"), a leading
manufacturer of high-purity polysilicon for the solar PV industry,
today announced that the Company's board of directors has approved
its Phase 3A expansion project, which is expected to increase the
polysilicon production capacity at the Company's Xinjiang
manufacturing site from the current level of 12,150 metric tons
(MT) to 18,000 MT. The Company currently expects capital
expenditures for the expansion project to be approximately
RMB620 million, having benefitted
from the Company's ability to reutilize all possible idle
polysilicon manufacturing equipment and related assets in
Chongqing, as well as the existing
shared facilities in Xinjiang.
The Company has officially launched the Phase 3A expansion
project after the board approval. Initial work related to the
project has already begun, including applications for relevant
permits and approvals. Construction and equipment installation is
expected to be completed by the end of 2016. The Company expects to
commence initial production of the Phase 3A project in the first
quarter of 2017 and achieve full production capacity by the end of
the second quarter of 2017.
"The success of our Phase 2B project, which is expected to bring
total production capacity to 12,150 MT at our Xinjiang site, gives
us confidence that the company can continue to expand our
production capacity and further enhance its advantage in cost
structure in polysilicon production," commented Dr. Gongda Yao,
Chief Executive Officer of Daqo New Energy. "With our new
Hydrochlorination system now fully on-line and operating at better
than anticipated levels in terms of production output, quality and
efficiency, we believe we can further strengthen our
industry-leading cost structure by reducing energy consumption and
improving manufacturing efficiencies. By reutilizing our idle
production equipment in Chongqing
and taking advantage of the exiting shared facilities in Xinjiang,
we believe that we will be able to achieve substantial savings in
capital expenditures, and reduce it to very competitive levels on a
per unit basis, resulting in enhanced return on investment.
Moreover, our recently announced loan agreements with domestic
Chinese banks afford us the flexibility to fund our expansion plan.
Our Phase 3A expansion project is a very important step towards our
goal of becoming one of the world's top producers of high-purity
polysilicon in terms of cost competitiveness, and will allow us to
better serve the demand of the global solar PV industry."
About Daqo New Energy Corp.
Daqo New Energy Corp. (NYSE: DQ) is a leading polysilicon
manufacturer based in China. Daqo
primarily manufactures and sells high-purity polysilicon to solar
photovoltaic (PV) product manufacturers. It also manufactures and
sells high-quality solar wafers. For more information about Daqo,
please visit www.dqsolar.com.
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 New Energy's strategic and operational plans, contain
forward-looking statements. The Company may also make written or
oral forward-looking statements in its reports filed with 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 the Company has filed
with, or furnished to, the Securities and Exchange Commission. Daqo
New Energy does not undertake any obligation to update any
forward-looking statement, except as required under applicable law.
All information provided in this press release is as of the date of
this press release, and Daqo New Energy undertakes no duty to
update such information, except as required under applicable
law.
For further information, please contact:
Daqo New Energy Corp.
Kevin He, Investor Relations
Phone: +86-187-1658-5553
Email: Kevin.he@daqo.com
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SOURCE Daqo New Energy Corp.