Daqo New Energy Corp., a leading manufacturer of high-purity polysilicon for the global solar PV industry listed on the New York Stock Exchange, announced that its subsidiary Xinjiang Daqo had entered into a strategic cooperation framework agreement with Baotou city, in China's Inner Mongolia autonomous region, for its future projects related to polysilicon, silicon metal and silicone.
According to the strategic cooperation framework agreement between Xinjiang Daqo and Baotou city, Xinjiang Daqo plans to build polysilicon projects for the solar industry with a total annual production capacity of 200,000 Metric Tons, polysilicon projects for the semiconductor industry with a total annual capacity of 21,000 MT, silicon metal projects with a total annual capacity of 300,000 MT and silicone projects with a total annual capacity of 200,000 MT in Baotou city.
These projects will be conducted in two phases. The first phase will start construction in the first quarter of 2022 and is expected to be completed in the second quarter of 2023, and it consists of a 100,000 MT polysilicon project for the solar industry and a 1,000 MT polysilicon project for the semiconductor industry with an estimated total investment of RMB8.55 billion. The plan and time table for the second phase will be determined later according to market conditions. According to the agreement, Xinjiang Daqo will enjoy favorable electricity rate and other relevant preferential treatment. Moreover, Xinjiang Daqo will be granted the highest priority for the use of green energy within Baotou City, including the direct supply of green energy to the new projects.
In addition, at the executional level, Xinjiang Daqo has entered into a project investment agreement with the government of the Jiuyuan District of Baotou City in which the polysilicon projects will be located, and a letter of investment intent with the government of Guyang County of Baotou City in which the metal silicon and silicone projects will be located.