Polysilicon Project Kick off

A polysilicon production base project of Zhenjiang Daqo Group
started construction on September 26th, 2006. The project uses
advanced technologies in the world and has a total investment
of US$500 million. It will be executed in two phases. After
completion of the project, the output will reach 6 000 tons a
year. The first phase has an investment of US$250 million and
will be completed and put on stream in June 2008. Daqo Group has
already conducted technical cooperation with Polysilicon
Engineering Co., Ltd. of Europe, CDI of the United States and
Degussa of Germany.
   Polysilicon is a cornerstone for the information sector and
the solar energy photovoltaic sector. The serious supply deficit
of polysilicon raw material has become a bottleneck to the
development of the solar energy photovoltaic sector. The output
of polysilicon in China was 80 tons in 2005, the actual market
demand was 3 000 tons and 95% of the domestic demand had to be
satisfied by imports. According to experts' projection, the
demand for polysilicon in China will reach 20 000 tons in 2010
with continuing supply deficit in the polysilicon market in
future.