China’s government is taking action to weed out weaker players in the nation’s polysilicon production sector to address oversupply and quality issues.
According to an article on BusinessSpectator, three quarters of China’s solar-grade polysilicon producers face closure.
In an odd turn of events, of the 69,000 metric tonnes of solar-grade polysilicon consumed in the period January-June in China, 41,000 metric tonnes were imported – produced by companies including REC.
The reason for the high level of imports comes down to cost and quality – Chinese companies have generally failed to meet market demands in both areas with local product.
However, there are some polysilicon manufacturers in the nation that are competitive on both fronts. Among those expected to be left standing after the cull is Daqo New Energy Corp. With total elimination of the weaker companies likely instead of acquisition; Daqo’s future is looking even brighter.
Daqo appears to be a golden child in Chinese polysilicon. In January, we mentioned China’s government is smiling upon a chosen few; with Daqo one of only a dozen companies that would receive priority funding support from China Development Bank Corp.
Daqo’s ultra-pure 9N polysilicon is used in many solar brands other than Daqo solar panels; but its own modules are also beginning to make their mark – including in Australia.
Daqo Group was founded 40 years ago and last year had revenue of over USD $1.8 billion; but prior to 2012, the brand was pretty much unknown locally.
Recognising the potential of Daqo modules, national solar solutions provider Energy Matters introduced the panels to the Australian residential market in 2012. The company has installed thousands of the panels since; without a single warranty claim, workmanship or performance issue reported.
Daqo panels’ attractiveness lies in a high degree of quality control and solid performance at a price below other leading brands. The modules also recently passed IEC61730-2 fire safety testing and demonstrated low performance losses in multiple gruelling PID tests.