(Yicai Global) Feb. 17 -- Chinese electrical equipment manufacturer TBEA and car parts manufacturer Huaxiang intend to invest CNY4.3 billion (USD680 million) to build a big solar power plant in northern China.

TBEA’s subsidiary TBEA Xinjiang New Energy and Huaxiang will form a joint venture to construct a photovoltaic project with a capacity of 1 gigawatt in Shanxi province, the Changji-based transformer manufacturer said in a statement yesterday. Each of the two will have 50 percent of the JV's equity.

TBEA has been promoting the construction of wind power and solar energy plants in recent years. The total installed capacity of photovoltaic engineering, procurement, and construction projects invested and built by TBEA and its units approaches 18 GW, according to the firm's website.

Some CNY4 billion of the above-mentioned funds will go into building the solar power plant, and CNY300 million (USD47.3 million) into producing solar mounting products. The undertaking requires government approval.

The project will help TBEA obtain more photovoltaic power generation resources and ensure the long-term development of its new energy business, according to its statement.

Huaxiang said in a separate statement that it is looking to achieve new business growth and development opportunities in the solar power equipment sector via the project. Moreover, it should be able to reduce its electricity costs.

TBEA's stock price [SHA: 600089] closed up 2.8 percent at CNY19.8 (USD3.10).

Huaxiang [SHA: 603112] slid 2.2 percent to CNY14.98.

Editor: Emmi Laine, Xiao Yi