Daqo Starts Pilot Production at Shihezi Facility, Stock Rises 6%
Daqo New Energy Corp. (NYSE: DQ), which makes polysilicon products, saw its stock propel nearly 6 percent on Monday, to $51.01 per American depositary share, after it announced it has begun pilot production at its new polysilicon facility in Shihezi.
Daqo said in a statement today that it has completed the construction and installments of Phase 4A facility and anticipated to ramp up its annual production capacity to 70,000 MT by the end of 2019.
"We have seen that mono-crystalline solar technology is rapidly expanding market share and accounting for an increasingly significant portion of capacity expansion projects of our solar wafer customers," Longgen Zhang, the chief executive officer of Daqo, said in a statement today. "We believe that mono technology will account for over 80% of the global PV market by the end of 2020."
Daqo also said in its statement that it sells approximately 85 percent to mono customers and expects to increase that to 90 percent.
"With the solar industry rapidly approaching grid parity, the successful completion of Phase 4A facility will provide us with added high-quality polysilicon capacity which will allow us to benefit from the sustainable growth of the global solar PV market," Zhang said.
Recently, Daqo announced a two-year agreement to supply polysilicon to JinkoSolar, a solar panel maker in Shanghai.
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