Daqo New Energy starts pilot production at new polysilicon plant

Chinese polysilicon maker Daqo New Energy Corp (NYSE:DQ) said today it has launched pilot production at its Phase 4A polysilicon production facility in Shihezi, Xinjiang.

The manufacturing facility is expected to ramp up to full production capacity gradually, lifting the company’s total production capacity to 70,000 tonnes by end-2019. Its start-up, plus economies of scale and the increased production efficiency, will help Daqo New Energy lower the total cost of polysilicon production at its Xinjiang facilities to around USD 6.80 (EUR 6.15) per kg in the first quarter of next year, CEO Longgen Zhang noted.

Once the Phase 4A ramps up to full production, the Chinese firm anticipates to start selling about 90% of its products to mono customers, as compared to 85% now. It explained it is collaborating with some key customers to test its products for potential N-type mono wafer applications, aiming to become market-ready to supply about 40% of its total polysilicon products for potential N-type applications in 2020.

"With the solar industry rapidly approaching grid parity, the successful completion of Phase 4A facility will provide us with added high-quality polysilicon capacity which will allow us to benefit from the sustainable growth of the global solar PV market," the CEO added.

(USD 1.0 = EUR 0.905)

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