Wuxi Shangji contributes to polysilicon supply with 52,700 MT Daqo deal

Mar 5, 2021 05:35 PM ET
  • Daqo New Energy has actually authorized one more high-purity polysilicon supply offer, this time broadening on its partnership with tools and also mono wafer provider Wuxi Shangji Automation (Shangji).
Wuxi Shangji contributes to polysilicon supply with 52,700 MT Daqo deal
Image: Daqo New Energy

The bargain will certainly see Daqo supply Shangji with 52,700 MT of high-purity mono-grade polysilicon over a three-year term, beginning this July.

As is customary with deals of this kind, actual rate will certainly be bargained on a month-to-month basis by both parties considering market conditions at the time, with Shangji making an advance settlement to Daqo.

The offer is to secure Shangji's instant access to high-purity polysilicon and comes less than a week after the wafer supplier penciled a major collaboration agreement with GCL-Poly to establish a 300,000 MT polysilicon factory in Inner Mongolia.

That project, which will need a total financial investment of US$ 2.78 billion, with Shangji tackling a 35% risk, would become the globe's largest on completion yet is to be developed in phases, the very first of which will have a capacity of 60,000 MT.

"We are really pleased to more reinforce our tactical collaboration with Daqo New Energy via this 2nd long-term polysilicon agreement between us. We will remain to expand our mono-wafer ability with advanced innovation to much better offer the fast-growing solar PV market," Jianliang Yang, chairman at Wuxi Shangji Automation, claimed.

The deal likewise comes amidst a boating of activity in polysilicon supply, with carriers revealing a multitude of supply contracts and also expansion plans as demand for the product from upstream solar players remains to rise.

Previously today Daqo introduced it had signed a similarly-termed take care of wafer manufacturer Zhonghuan Semiconductor for 41,000 MT.