(Yicai International) December 7 — Daqo New Power has begun increasing its manufacturing facility in northern China after successful a number of long-term provide contracts for a core photo voltaic panel materials.
The cell materials provider will spend CNY9.2 billion (USD1.3 billion) to finish the second section of its plant in Baotou by 2023, with an extra annual capability of 100,000 tons of polycrystalline silicon, the Shihezi-based agency mentioned. in an announcement yesterday.
The rise is important as a result of Daqo has secured 9 long-term polycrystalline silicon contracts with a complete worth of about CNY377.4 billion (USD54.1 billion) since mid-October.
Daqo broke floor on its new Baotou manufacturing base in December 2021. The primary section of the plant is scheduled to be absolutely operational within the second quarter of 2023, however the firm is unsure concerning the timetable for the second section at the moment.
After the growth is accomplished, the capability of the manufacturing facility in Interior Mongolia will improve to 200,000 tons per 12 months in order that the whole firm will attain 305,000 tons, greater than 3 times the quantity recorded when the Baotou plant began to construct.
Daqo benefited from the worldwide renewables rally as the corporate’s internet revenue greater than tripled to about CNY15.1 billion (USD2.2 billion) within the first three quarters of this 12 months from a 12 months earlier, firstly as a result of improve within the worth of polysilicon.
However after years of quick provide, China’s polysilicon market is altering. The nation’s annual manufacturing capability ought to double this 12 months from 2021 to 1.2 million tons and double once more to 2.4 million tons in 2023, based on the silicon department of the China Nonferrous Metals Trade Affiliation. Silicon output ought to attain 820,000 tons this 12 months, a two-and-a-half-fold soar from final 12 months.
Daqo’s inventory worth [SHA: 688303] rose 0.5 p.c to shut at CNY54.59 (USD7.80).
Editor: Emmi Laine, Xiao Yi
