Daqo becomes big polysilicon player with capacity of 70,000 tons

Daqo New Energy’s polysilicon plant in Shihezi, Xinjiang
Daqo will double the production capacity of its polysilicon plant in Shihezi, Xinjiang to 70,000 metric tons – Image: Daqo New Energy

Daqo New Energy, the third-largest polysilicon manufacturer in China, has announced it will increase the production capacity of its plant in Shihezi, Xinjiang by a further 35,000 metric tons (MT). The company will thus reach a total capacity of at least 70,000 MT in early 2020.

The new expansion project, dubbed Phase 4A, is slated to come on stream in the fourth quarter of 2019 and to ramp up to full capacity in the first quarter of 2020. Daqo expects a capital expenditure of RMB3.2 billion, which translates into an extremely low specific capex of $14.37/kg.

The company is currently expanding its capacity by 12,000 MT (Phase 3B). Originally scheduled for completion by the end of 2019, the project has now been accelerated to be executed by the end of 2018.

Daqo’s current nameplate capacity is 18,000 MT, but effective capacity has already reached 23,000 MT. Phase 4B, which has not been scheduled yet, will comprise another 35,000 MT and lift the company’s capacity beyond 100,000 MT.

With the massive expansion, Daqo responds to the strong demand for polysilicon that can be used for monocrystalline wafers. The company is one of very few Chinese manufacturers that are able to provide the required high purity.

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