CHONGQING, China, May 24, 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 that it has received government approval
of its Phase 4 capacity expansion plan in its entirety and signed
an investment agreement with the local government.
The Phase 4 expansion plan will expand the Company's
manufacturing capacity in Shihezi,
Xinjiang Uygur Autonomous Region, by a total of
70,000 MT in two Phases, Phase 4A and
4B, which will each consist of
35,000 MT expanded manufacturing
capacity. We began the design, construction and installation of the
new facilities for Phase 4A in early May
2018, with pilot production expected to commence in the
fourth quarter of 2019 before ramping up to full 35,000 MT annual production capacity in the first
quarter of 2020. 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 the first quarter of 2019.
Mr. Longgen Zhang, Chief Executive Officer of Daqo New Energy,
commented, "Government approval of Phase 4 in its entirety is
another milestone in our long-term expansion plan and demonstrates
our commitment to meeting the surging demand for ultra-high purity
polysilicon from our customers. As part of our investment agreement
with the local government, our electricity rate will decrease to
RMB0.20/kwh (VAT included) when we
fully ramp up our Phase 4A project in Q1 2020. Our current
electricity rate is RMB0.29/kwh (VAT
included), which is expected to decrease to RMB0.24/kwh (VAT included) when we fully ramp up
our Phase 3B project in Q1 2019. The
reduced electricity rates and the additional capacity will improve
our manufacturing efficiency and strengthen our leadership position
in terms of cost structure. With grid parity rapidly approaching, I
am confident that demand for our ultra-high purity
mono-crystalline-grade polysilicon will remain strong going
forward. We will continue to strategically plan for our future as
we further improve our cost structure and polysilicon purity, and
expand our capacity to strengthen our leadership position 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/
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SOURCE Daqo New Energy Corp.