Daqo New Energy to further boosts Xinjiang polysilicon capacity
Chinese firm Daqo New Energy Corp (NYSE:DQ) said Tuesday it will increase the polysilicon capacity at its factory in Xinjiang Uygur autonomous region to 18,000 tonnes by mid-2017.
At present, the production capacity of the plant stands at 12,150 tonnes, after the company officially commenced pilot operation of its 6,000-tonne Phase 2B project in end-June.
The Phase 3A expansion scheme, which has received the green light from Daqo New Energy’s board of directors, is estimated to require an investment of roughly CNY 620 million (USD 99.8m/EUR 91.9m). Daqo New Energy has already secured a CNY-825-million loan from Chongqing Rural Commercial Bank in mid-July for the project.
“By reutilizing our idle production equipment in Chongqing and taking advantage of the existing 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,” CEO Gongda Yao noted.
Initial works related to the new polysilicon capacity have already begun with the filing of the applications for the relevant permits and approvals, according to the press release. Construction and equipment installation of the new systems is expected to be wrapped up by the end of 2016. The manufacturer expects to kick off initial production in the first quarter of 2017, followed by full production by the end of that year's second quarter.