Daqo New Energy has plans to double polysilicon production at its plant in Xinjiang, China to 12,000MT per annum by the end of 2014.
The company had said in September, 2013 that production at the plant would be increased from 5,000MT to 6,150 MT by the end of 2013. The company was targeting production costs of US$14/kg after making major technology upgrades to the plant in an effort to sell polysilicon at a profit after ASPs fell below production costs in 2012.
Polysilicon ASPs have stabilised in 2013 at around US$17/kg.
"Based on the excellent performance of our current Xinjiang facilities and the firm belief in the promising opportunities in the solar PV industry, the Board has approved to accelerate the progress of our long term growth plans," commented Dr. Gongda Yao, CEO of Daqo New Energy. "We have demonstrated our capability by achieving one of the lowest cost structures and the first class quality for polysilicon manufacturing. We believe with the completion of our expansion plan, we will play a more important role to support the industry by providing low cost and high quality polysilicon products, so as to make solar PV more accessible and affordable in the future."
Daqo noted that it expected to complete the construction and start trial production runs by the end of 2014.
The company did not provide details on the capital expenditure required for the expansion or how the company expected to fund it. Daqo did highlight that an amended investment agreement with Shihezi City government authorities would enable the company to obtain a 3% discount on the plant's electricity rate once it was fully ramped.