CHONGQING, China, Sept. 7, 2018 /PRNewswire/ -- Daqo New Energy
Corp. (NYSE: DQ) ("Daqo New Energy", the "Company" or "we"), a
leading manufacturer of high-purity polysilicon for the global
solar PV industry, today announced that it plans to discontinue its
solar wafer manufacturing operations in September 2018 so that the Company can focus on
its core polysilicon manufacturing business.
The Company expects to incur approximately US$21.6 million in fixed-asset impairment and
restructuring charges during the third quarter of 2018, including
approximately US$1.6 million in
employee severance payments and approximately US$20.0 million in impairment of long-lived
assets.
Mr. Longgen Zhang, CEO of Daqo New Energy, commented, "We made a
strategic decision to discontinue our solar wafer manufacturing
operations to accommodate the increasingly challenging market
conditions for multi-crystalline wafers. We expect to complete the
shutdown of the solar wafer business in the third quarter of 2018.
This move will allow us to focus all of our resources and expertise
on our core polysilicon manufacturing business and Phase
3B expansion project which will begin
pilot production in the fourth quarter of
2018."
Safe Harbor Statement
This announcement contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the quotations from management in this announcement, as well as
Daqo New Energy's strategic and operational plans, contain
forward-looking statements. The Company may also make written or
oral forward-looking statements in its reports filed or furnished
to the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
factors could cause actual results to differ materially from those
contained in any forward-looking statement, including but not
limited to the following: the demand for photovoltaic products and
the development of photovoltaic technologies; global supply and
demand for polysilicon; alternative technologies in cell
manufacturing; our ability to significantly expand our polysilicon
production capacity and output; the reduction in or elimination of
government subsidies and economic incentives for solar energy
applications; and our ability to lower our production costs.
Further information regarding these and other risks is included in
the reports or documents we have filed with, or furnished to, the
Securities and Exchange Commission. Daqo New Energy does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law. All information provided
in this press release and in the attachments is as of the date of
this press release, and Daqo New Energy undertakes no duty to
update such information, except as required under applicable
law.
ABOUT DAQO NEW ENERGY
CORP.
Daqo New Energy Corp. (NYSE: DQ)
("Daqo" or the "Company) is a leading manufacturer of high-purity
polysilicon for the global solar PV industry. Founded in 2008, the
Company is one of the world's lowest cost producers of high-purity
polysilicon. Daqo's highly-efficient and technically advanced
manufacturing facility in Xinjiang China currently has annual
polysilicon production capacity of 18,000 metric tons, and the
Company is undergoing capacity expansion to reach annual
polysilicon production capacity of 30,000 metric tons by the end of
2018.
For more information, please visit http://daqo.gotoip1.com/
For further information, please contact:
Daqo New Energy Corp.
Investor Relations Department
Phone: +86-187-1658-5553
Email: dqir@daqo.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10- 5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
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SOURCE Daqo New Energy Corp.