Daqo pushes mono-grade polysilicon to 80% of production capacity

Facebook
Twitter
LinkedIn
Reddit
Email
Daqo expects full-year polysilicon production to be in the range of approximately 37,000 to 40,000MT, including annual facility maintenance later in the year. Image: Daqo

China-based polysilicon producer Daqo New Energy is upgrading CVD chambers and debottlenecking to enable mono-grade polysilicon production to account for approximately 80% of capacity, due to strong demand and higher ASPs, compared multi-grade polysilicon.

The upgrading and debottlenecking will curtail polysilicon production in the second quarter of 2019, coinciding with an expected fall in downstream installations in China from the weak 5.2GW of new PV installations during the first quarter of 2019.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

However, Daqo expects full-year polysilicon production to be in the range of approximately 37,000 to 40,000MT, including annual facility maintenance later in the year. The company reiterated it was still on track with capacity expansions with its Phase 4A project that should complete construction by the end of 2019 and ramp up to full capacity of 70,000 MT by the end of the first quarter of 2020.

Longgen Zhang, CEO of Daqo New Energy said, “We are currently undertaking a capacity debottlenecking project to gradually upgrade several older CVD furnaces with improved technology, allowing us to increase production capacity by additional 5,000MT. This project is progressing well and we expect to complete the project ahead of schedule in early June 2019. The ramp-up process of this debottlenecking project will temporarily impact production volumes and cost.”  
 
Daqo reported first quarter 2019 revenue US$81.2 million, compared to US$75.6 million in the fourth quarter of 2018 and US$95.6 million in the first quarter of 2018. The sequential increase in revenues was primarily due to higher polysilicon sales volumes partially offset by lower ASPs, according to the company.

Revenue continues to be impacted by lower polysilicon ASPs.

Gross profit was US$18.3million in the reporting quarter, compared to US$16.9 million in the fourth quarter of 2018 and US$43.1 million in the first quarter of 2018. 

Gross profit was US$18.3million in the reporting quarter, compared to US$16.9 million in the fourth quarter of 2018 and US$43.1 million in the first quarter of 2018.

Gross margin was 22.6%, compared to 22.4% in the fourth quarter of 2018 and 45.0% in the first quarter of 2018. The company said that the sequential increase was primarily due to lower average polysilicon production cost, partially offset by lower ASPs. 

Daqo reported polysilicon production volume of 8,764MT in the reporting quarter, compared to 7,301MT in the previous quarter as the company ramped production and maintained full capacity, which also included reducing total production costs to US$7.42/kg, a new record low. 

Polysilicon production continues to set new company record.

Daqo reported external polysilicon sales volume of 8,450 MT in Q1 2019, compared to 7,030 MT in the previous quarter, another new record for the company.

Daqo reported external polysilicon sales volume of 8,450 MT in Q1 2019, compared to 7,030 MT in the previous quarter, another new record for the company.

Guidance

Daqo said that due to the upgrades and debottlenecking it expected to produce approximately 7,200 to 7,400MT of polysilicon in the second quarter of 2019. This would lead to slightly higher total production costs of US$8.0/kg to US$8.5/kg. 

Polysilicon sales would be approximately 7,100MT to 7,300MT, during the second quarter of 2019. 

The Company expects the total production cost to fall back to around US$7.5/kg in the third quarter of 2019.

Read Next

September 4, 2025
US polysilicon company Highland Materials has aimed to begin construction at its polysilicon plant in the second half of 2026.
Premium
September 4, 2025
PV Talk: Highland Materials' CEO Richard Rast explains how the company aims to compete in the polysilicon landscape through US innovation.
Premium
August 27, 2025
American Clean Power Association’s MJ Shiao assesses the state of US PV manufacturing in the wake of recent policy developments.
August 26, 2025
Daqo New Energy has posted gross losses of US$81.4 million in Q2 2025, up from losses of US$81.5 million in Q1.
August 12, 2025
US polysilicon company Highland Materials has signed a long-term lease for the site of a planned “next-generation” polysilicon production facility in Tennessee.
August 5, 2025
China’s leading polysilicon firms are reportedly considering shutting down one third of the country’s polysilicon capacity and restructuring the sector, following years of overcapacity and tumbling prices.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines