Daqo pushes $1.6 billion capital injection to accelerate polysilicon project in Inner Mongolia
Daqo New Energy has provided a capital injection of RMB 10 billion ($1.6 billion) to a subsidiary that is to advance on future polysilicon production projects in Inner Mongolia.
The polysilicon producer confirmed the capital increase in a statement posted to the Shanghai Stock Exchange yesterday (January 3, 2022), confirming that its Inner Mongolia-based subsidiary will receive the capital injection to advance the construction of the first phase. of a 100,000 MT high-purity reactor. polysilicon project which will also produce 1,000 tons of semiconductor-grade polysilicon.
The capital must come from Daqo’s existing funds and lines of financing.
The capital increase follows a proposed strategic agreement with the local authorities of Baotou, announced towards the end of last year, which will see Daqo invest and develop production facilities for polysilicon and silicon metal in Baotou, construction to begin later this quarter.
In total, Daqo has reserved projects totaling 200,000 MT of solar-grade polysilicon, 21,000 MT of semiconductor-grade polysilicon, 300,000 MT of silicon metal and 200,000 MT of silicone production for Baotou.
The Strategic Framework Agreement signed between Daqo and Baotou City was ratified by Daqo’s Board of Directors on December 31, 2021, allowing the company to proceed with the construction of its first phase, which is expected to be completed. in the second quarter of 2023.