According to Daqo New Energy, three leading Chinese wafer manufacturers have signed polysilicon supply contracts with its Xinjiang Daqo New Energy division.
The contracts are not traditional long-term arrangements but will run from September 2013 to December 2014, rather than the historic ten-year contracts.
The company said that Xinjiang would provide over 70% of its output to the three customers. Daqo is planning to expand capacity to around 12,000MT per annum, according to management comments during its second quarter 2013 conference call.
Gongda Yao, chief executive of Daqo New Energy, said: “As the solar PV industry starts to recover, we believe this … will not only deliver great value to our customers but also pave solid ground for further growth of our polysilicon facilities in Xinjiang.”
The company had been impacted by the dramatic fall in polysilicon prices over the last two-years and has been forced to restructure its production facilities and undertake upgrades to reduce costs inline with spot market pricing.
The deal comes quickly after the Chinese government imposed hefty anti-dumping duties on imported polysilicon from the likes of US and Korea.