Daqo New Energy to Expand Polysilicon Facilities in Xinjiang

Daqo New Energy

today announced that the Board has officially approved the Company's plan to expand its polysilicon capacity in Xinjiang to 12,000 metric ton (MT) per annum. In the 12th Five-Year Plan for Solar PV Industry, China will implement differentiated policies to optimize the geographic layout of polysilicon industry by best leveraging the energy advantages in the western regions like Xinjiang. In August, Chinese Vice President Mr. Li Yuanchao visited Daqo New Energy's Xinjiang polysilicon facilities, highly recognized our achievements and encouraged the Company to further strengthen its advantages in technology, cost and quality. Currently the annual capacity for our Xinjiang facilities is 5,000 MT, which will be raised to 6,150 MT by the end of 2013. The Company plans to further increase the capacity to 12,000 MT and expects to complete the construction and start trail run by the end of 2014. According to the amended investing agreement with the local government of Shihezi City, the Company will enjoy a 3% discount on electricity rate when we fully ramp up the capacity. "Based on the