China-based Daqo New Energy Corp. plans to expand its polysilicon capacity in Xinjiang to 12,000 metric tons per year.
Daqo reports the current annual capacity of its Xinjiang facilities will reach 6,150 metric tons by the end of this year. The company expects to hit its 12,000 metric ton goal on a trial basis by the end of 2014. According to an agreement with the government of Shihezi City, Daqo will receive a 3% discount on its electricity rate when it fully ramps up its capacity.
The company says China's 12th five-year plan shifts government policies for the PV industry to favor polysilicon production to western regions such as Xinjiang, where energy rates are more favorable.
‘Based on the excellent performance of our current Xinjiang facilities and the firm belief in the promising opportunities in solar PV industry, the board has approved to accelerate the progress of our long -erm growth plans,’ says Gongda Yao, Daqo New Energy CEO.