Daqo New Energy Increases Polysilicon Capacity

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Chongqing,   China

Chinese polysilicon manufacturer, Daqo New Energy is planning to adopt the hydrochlorination technology for the conversion of silicon tetrachloride (STC) into trichlorosilane (TCS) at its Wanzhou polysilicon manufacturing facility.

The adoption of the hydrochlorination technology is expected to increase the annual TCS production capability in the Company’s Wanzhou facility to 220,000 MT (metric ton).

In the meantime, the Company will retrofit its current hydrogenation furnaces into TCS deposition furnaces. The Company will commence this technology improvement project in October 2011, with targeted mechanical completion in the third quarter of 2012.

When this project is completed, the Company is expected to expand its Wanzhou annual polysilicon manufacturing capacity from the current 4,300 MT to 9,000 MT.

The total capital expenditure for the project is expected to be approximately $135 million.

"We have been closely working with key partners on hydrochlorination technology for a while and have concluded that this is the right time to adopt this technology”, commented Dr. Gongda Yao, Chief Executive Officer of Daqo New Energy. "We are excited about the opportunity to use this technology, not only to improve our manufacturing cost structure by increasing energy consumption efficiency, but also enable us to more than double our polysilicon manufacturing capacity in Wanzhou with low capital expenditure. With the increased polysilicon capacity, we can better serve our current and future customers with our quality polysilicon.”