Daqo pushes US$ 1.6 bn capital injection to increase Inner Mongolia polysilicon project

• Daqo New Energy has actually supplied a RMB10 billion (US$ 1.6 billion) capital injection to a subsidiary which is to bear down future polysilicon production projects in Inner Mongolia.

The polysilicon manufacturer confirmed the capital increase in a statement released to the Shanghai Stock Exchange yesterday (3 January 2022), verifying that its Inner Mongolia-based subsidiary would get the capital injection to breakthrough building and construction on the initial phase of a 100,000 MT high-purity polysilicon project which will certainly also generate 1,000 tons of semiconductor-grade polysilicon.

The capital is to originate from Daqo's existing funds and also lines of funding.

The capital rise follows a recommended critical contract with regional authorities in Baotou, announced towards the end of last year, which will certainly see Daqo purchase and also create polysilicon and silicon metal manufacturing centers in Baotou, with building readied to begin later on this quarter.

In overall, Daqo has actually set aside projects amounting to 200,000 MT of solar-grade polysilicon, 21,000 MT of semiconductor-grade polysilicon, 300,000 MT of silicon metal as well as 200,000 MT of silicone output for Baotou.

The tactical structure agreement signed in between Daqo as well as Baotou city was validated by Daqo's board on 31 December 2021, allowing the business to proceed with construction of its very first phase, which is set to wrap up in Q2 2023.