Daqo Group to Invest $820 Million in Largest Poly-Silicon Industrial Base in Xinjiang

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Researched by Industrial Info Resources China (Beijing, China)--Daqo Group (Yangzhong, Jiangsu), the parent company of Daqo New Energy Company Limited (NYSE:DQ), signed a cooperation agreement with the government of Shihezi City for the development of the largest poly-silicon industrial base in Xinjiang on November 13, 2013, according to an announcement from Daqo Group on November 14.

According to the agreement, Daqo Group will invest $820 million to build the Daqo Photovoltaic Industry Park in two stages in the Economic and Technology Development Zone of Shihezi City. In the initial stage, Daqo Group will invest $164 million to expand its poly-silicon production scale in Shihezi factory from 6,200 to 12,000 metric tons per year through technical renovation. In the second stage, Daqo Group will invest $656 million to build an additional 13,000-ton-per-year poly-silicon production line with an associated wafer project.

As reported, the current production capacity in Daqo Group's Xinjiang poly-silicon base is 5,000 tons per year. It's expected that its capacity will be expanded to 6,150 tons per year at the end of 2013. The 12,000-ton-per-year expansion project is expected to be completed at the end of 2014. Upon the full completion of the project in 2015, Daqo Group's poli-silicon production capacity in Shihezi will reach 205,000 metric tons and its wafer production capacity will reach 250 megawatts (MW). Daqo Photovoltaic Industry Park will be the largest poly-silicon production base in Xinjiang.

Daqo Group, established in 1965, is a large-scale enterprise group with a leading role in sectors such as high-low-voltage electrical system, components, environmental protection, high-speed railway equipment, and new energy (polysilicon and solar cells). Daqo Group currently has four major industrial bases in Yangzhong (Jiangsu), Nanjing Jiangning Development Zone, Chongqing Wanzhou District and Shihezi (Xinjiang).

Xu Xiang, the president of Daqo Group, and Sheng Yanjiang, the mayor of Shihezi City, signed the agreement on behalf of both parties.

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