With Phase 3B currently running at full production capacity, a power purchase agreement with the local electric utility will reduce the Company's electricity rates by approximately 18% from previous levels.
Daqo New Energy Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a leading manufacturer of high-purity polysilicon for the global solar PV industry, today announced that its new Phase 3B polysilicon production facility had reached full production capacity ahead of schedule. With the addition of Phase 3B, the Company's total production capacity has expanded to 30,000 MT.
With Phase 3B currently running at full production capacity, a power purchase agreement with the local electric utility will reduce the Company's electricity rates by approximately 18% from previous levels. With lower electricity rates, higher manufacturing efficiency, greater economies of scale, and enhanced equipment and process, the Company expects the overall total cost of polysilicon production for its Xinjiang facilities to decrease to approximately US$7.50 per kilogram in the first quarter of 2019.
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "I'm proud to see our new Phase 3B production facility reach full production capacity ahead of schedule, which demonstrates our strong executional capabilities. Our teams will continue to optimize Phase 3B's operational efficiency, which will enhance our competitive advantage in cost structure and quality. At the same time, we are continuing to make progress in our Phase 3B's debottlenecking project, which will increase our annual capacity to 35,000 MT by the end of June, 2019. Our Phase 4A capacity expansion project, which will increase our capacity to 70,000 MT, is progressing smoothly and will lower our costs even further once fully ramped up by the end of the first quarter of 2020. We remain confident in our strategy and believe our leadership position in the polysilicon industry will further strengthen as the market recovers."
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. Daqo's highly-efficient and technically advanced manufacturing facility in Xinjiang, China currently has an annual polysilicon production capacity of 30,000 metric tons, and the Company is undergoing a debottlenecking project and a capacity expansion project and expects to increase its annual polysilicon production capacity to 70,000 metric tons in the first quarter of 2020.
For more information, please visit http://daqo.gotoip1.com/