Jun. 26, 2009 (China Knowledge) - Saudi Arabia's Ahmed Salem Bugshan Group (ASB) have signed an agreement with Wenzhou Dazhan International Trading Company to jointly invest a total of RMB 530 million to build a photovoltaic (PV) industrial base in Wenzhou City, Zhejiang Province.
The PV industrial base will be used to produce solar energy cells and solar LED automatic lighting systems, and will be completed within three years. It is estimated that the PV projects will generate an annual production value of more than RMB 1 billion.
The two sides will invest RMB 100 million in the project and will set up a joint venture (JV), Dazhan Photovoltaic Co, the report said. Wenzhou Dazhan will hold a 70% in the JV and will provide technology support. ASB will invest cash and will hold a 30% stake in the JV.
ASB said its motive is to explore China's potential PV market and that it trusts Wenzhou Dazhan because the two companies have already been in cooperation for many years.
Last year Wenzhou Dazhan's chairman bought into a local firm in Anhui Province that is mainly engaged in manufacturing fuel-sensitized solar cells and solar LED automatic lighting systems.