Daqo New Energy announced its Phase 3A polysilicon manufacturing expansion project, aiming to increase polysilicon production capacity at the Company's Xinjiang manufacturing site from the current level of 12,150 metric tons (MT) to 18,000 MT. The expected capital expenditure for the expansion project is to be approximately RMB 620 million. The additional production capacity is expected to be fully achieved by the end of the second quarter of 2017.

Daqo New Energy has officially launched the Phase 3A expansion project after the board approval. Initial work related to the project has already begun, including applications for relevant permits and approvals. Construction and equipment installation is expected to be completed by the end of 2016. The company expects to commence initial production of the Phase 3A project in the first quarter of 2017 and achieve full production capacity by the end of the second quarter of 2017.

"The success of our Phase 2B project, which is expected to bring total production capacity to 12,150 MT at our Xinjiang site, gives us confidence that the company can continue to expand our production capacity and further enhance its advantage in cost structure in polysilicon production," commented Dr. Gongda Yao, Chief Executive Officer of Daqo New Energy. "With our new Hydrochlorination system now fully on-line and operating at better than anticipated levels in terms of production output, quality and efficiency, we believe we can further strengthen our industry-leading cost structure by reducing energy consumption and improving manufacturing efficiencies.”