During tumultuous times for the polysilicon industry, Chinese manufacturer Daqo New Energy Corp. has stayed sturdy and resolute, and is now looking to increase its manufacturing capacity. The company has recently seen its product sell for record low prices, but has managed to stay profitable by reducing its production costs alongside the market.
As its business remains one of the most stable in the polysilicon industry, Daqo announced the approval of a RMB500 million (USD76 million) credit line from Chongqing Rural Commercial Bank of a seven-year finance loan. The company has requested the financing to increase its already sizeable manufacturing capacity from 12,150 MT annually to 18,000 MT annually, which it aims to have achieved by Q2 of 2017.
As a tier-one Chinese polysilicon manufacturer, our globally leading cost structure and promising profitability has served as the corner stone for our continued cooperation with Chongqing Rural Commercial Bank, said Daqo CEO Dr. Gongda Yao. The loan will provide strong capital support for our Phase 3A expansion project and afford us more flexibility in pursuing our future growth.
The move comes during a year that Daqo saw its polysilicon sell for record low prices of $13.72 per kilogram. However, the company counteracted these market trends by dropping its production costs to record low levels of less than $10 per kilogram.
The company is showing that it has the capability to continue to grow and to adapt to the market, which is holding it in good stead as the demand for polysilicon grows, amid a boom in cell and module manufacturing in China.