Chinese equipment provider for manufacturing industries and mono-wafer manufacturer Wuxi Shangji Automation has placed an order for 52,700 MT polysilicon with fellow Chinese silicon producer Daqo New Energy.
As per the supply agreement signed, Daqo will supply Wuxi Shangji with 52,700 MT high purity mono-grade polysilicon between July 2021 and June 2024. While Shangji will make an advance payment to Daqo, actual prices will be negotiated between them on monthly basis.
In an official announcement, Daqo did not disclose the annual supply amount.
This happens to be the 2nd long term polysilicon supply agreement between the 2 companies as previously Wuxi Shangji contracted Daqo to supply it 21,600 MT to 32,000 MT till 2022 (see Daqo Secures Polysilicon Contract With Wuxi Shangji).
The 2nd deal with Daqo New Energy follows a recent announcement from Wuxi Shangji to launch a joint venture with GCL-Poly for production of 300,000 MT granular silicon in Inner Mongolia, China. Under phase I, 60,000 MT is planned to come online (see GCL-Poly & Wuxi Shangji Announce Joint Venture).
"We are very pleased to further strengthen our strategic partnership with Daqo New Energy through this second long-term polysilicon contract between us," said Wuxi Shangji Automation's Chairman Jianliang Yang. "We will continue to expand our mono-wafer capacity with advanced technology to better serve the fast-growing solar PV market."
This is yet another long term polysilicon deal for Daqo in recent times. A week back, it entered a 3-year supply agreement with solar wafer manufacturer Zhonghuan Semiconductor (TZS) for 41,000 MT (see Daqo New Energy Gets 41,000 MT Polysilicon Supply Order).
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