Daqo New Energy has provided a RMB10 billion (US$1.6 billion) capital injection to a subsidiary which is to advance on future polysilicon production projects in Inner Mongolia.
The polysilicon producer confirmed the capital increase in a statement issued to the Shanghai Stock Exchange yesterday (3 January 2022), confirming that its Inner Mongolia-based subsidiary would receive the capital injection to advance construction on the first phase of a 100,000MT high-purity polysilicon project which will also produce 1,000 tons of semiconductor-grade polysilicon.
The capital is to originate from Daqo’s existing funds and lines of financing.
The capital increase follows a proposed strategic agreement with local authorities in Baotou, announced towards the end of last year, which will see Daqo invest in and develop polysilicon and silicon metal production facilities in Baotou, with construction set to start later this quarter.
In total, Daqo has earmarked projects totalling 200,000MT of solar-grade polysilicon, 21,000MT of semiconductor-grade polysilicon, 300,000MT of silicon metal and 200,000MT of silicone output for Baotou.
The strategic framework agreement signed between Daqo and Baotou city was ratified by Daqo’s board on 31 December 2021, allowing the company to proceed with construction of its first phase, which is set to conclude in Q2 2023.