Blog Exposure – Daqo New Energy Announces Phase-4A Expansion Plan to Increase Polysilicon Production Capacity to 65,000 MT by 2020

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LONDON, UK / ACCESSWIRE / May 10, 2018 / If you want access to our free research report on Daqo New Energy Corp. (NYSE: DQ) (“Daqo”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DQ as the Company’s latest news hit the wire. On May 08, 2018, the Company announced that its Phase-4A expansion plan, which includes increasing its annual polysilicon production capacity by 35,000 MT to a total of 65,000 MT by Q1 2020. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Details of Phase-4A Expansion Plan

The expansion plan calls for the construction of a new manufacturing facility adjacent to Daqo’s existing facilities in Shihezi, Xinjiang Uygur Autonomous Region in China. The design, construction, and installation of the new facility is scheduled to commence in May 2018, with pilot production expected to begin in Q4 2019 before ramping up to full 35,000 MT annual production capacity in Q1 2020.
The capital expenditure for the expansion project is estimated to be approximately RMB3.2 billion, which will be financed by the Company’s cash, cash flow from operations, bank loans, bonds, prepayments, and other sources.
The Phase-4A compliments the 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 2019. The pace of construction of Phase-3B was accelerated during Q1 2018, and is now expected to be completed and begin pilot production by the end of 2018 before ramping up to full production capacity during Q1 2019.

Phase-4A Expansion Plan will Meet Customer’s Surging Demand and Urgent Needs for Ultra-High Purity Polysilicon

Longgen Zhang, Chief Executive Officer (CEO) of Daqo, stated that the entirety of the Phase-4 expansion plan will expand its manufacturing capacity by a total of 70,000 MT over two phases, Phase-4A and Phase-4B, which each will consist of 35,000 MT of expanded manufacturing capacity. The Phase-4A is an important milestone in the Company’s long-term expansion plan to meet customer’s surging demand and urgent needs for ultra-high purity polysilicon.

Zhang added that as the Phase-3B of Daqo’s expansion plan enters the final stages, the Company has strategically planned to add an additional 35,000 MT of annual manufacturing capacity by 2020, which will increase its total production capacity to 65,000 MT. This new facility will feature state-of-the-art equipment and technology, and will produce ultra-high purity mono-crystalline-grade polysilicon. Furthermore, this additional capacity will improve manufacturing efficiency and is expected to further reduce costs by approximately US$1.70 per kilogram from current levels. With capital expenditure for this facility expected to be at around US$14.0-15.0 per kilogram, the Company believes that this investment will yield long-term sustainable results for Daqo’s shareholders.

Daqo’s Phase-3B Expansion Plan for Its Polysilicon Facilities in Xinjiang

In October 2017, the Company’s Board of Directors officially approved the Phase-3B expansion plan for its polysilicon facilities in Xinjiang. The Phase-3B project was expected to increase the Company’s polysilicon annual nameplate capacity from the current 18,000 MT to 25,000 MT. By adopting additional technology improvement and debottlenecking projects, the Company might be able to further increase its capacity to 30,000 MT per annum by the end of 2019. Daqo expected to complete the project design and initial preparation works for the Phase-3B by the end of 2017; complete constructions and installations by the end of 2018; start pilot production in the first half of 2019; and reach full capacity by the end of Q2 2019.

About Daqo New Energy Corp.

Founded in 2008 and headquartered in Chongqing, China, Daqo is a leading manufacturer of high-purity polysilicon for the global solar PV industry. As one of the world’s lowest cost producers of high-purity polysilicon and solar wafers, the Company primarily sells its products to solar cell and solar module manufacturers.

Stock Performance Snapshot

May 09, 2018 – At Wednesday’s closing bell, Daqo New Energy’s stock advanced 1.09%, ending the trading session at $54.91.

Volume traded for the day: 383.75 thousand shares.

Stock performance in the last three-month – up 9.54%; previous six-month period – up 37.93%; and past twelve-month period – up 147.57%

After yesterday’s close, Daqo New Energy’s market cap was at $600.17 million.

Price to Earnings (P/E) ratio was at 6.48.

The stock is part of the Technology sector, categorized under the Semiconductor Equipment & Materials industry. This sector was up 1.2% at the end of the session.

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