Daqo New Energy Corp. (NYSE: DQ) has entered into a three-year agreement with Wuxi Shangji Automation. In 2019, Shangji has commenced its mono-wafer production business and has rapidly gained recognition as the prominent provider of mono-wafer. As per the deal between the firms, DQ has the responsibility to offer Shangji high-purity mono-grade polysilicon.
Daqo will provide a total of 52,700 MT polysilicon between July 2021 and June 2024 to Shangji as per the deal. After considering the market terms, both the firms will decide the actual prices. Under the terms of the deal, Wuxi Shangji is bound to make the initial payment to Daqo Energy.
CEO of Daqo Energy stated that the firm has signed a contract with Wuxi, which is the prominent client of DQ, and it has a strong vision. Wuxi has also a long successful history of the completion of the contract of mono-wafer. CEO further added that Daqo will continue to work collaborate with Shangji by offering top-class polysilicon products and help them to improve complete their potential growth schemes.
Furthermore, the Chairman of Wuxi Shangji Automation has shown excitement for the collaboration of the firm with Daqo Energy as Shangji is committed to collaborating. This is the second agreement for polysilicon between the two firms and this second agreement will further strengthen the relationship of both the firms.