(Yicai) May 24 -- Chinese power generation solutions provider PCG Power is teaming up with Saudi Arabian solar giant FAS Energy to develop the new energy sector in the Xi’an Economic and Technological Development Zone. It is the first time that a Saudi Arabian company has invested in the city of Xi’an.

PCG Power and FAS Energy intend to inject CNY1 billion (USD138 million) into the new energy sector in the Xi’an Economic and Technological Development Zone, half of which will be foreign direct investment at USD70 million, PCG Power said yesterday, citing the deal penned between the two parties. No further details about the tie-up were given.

FAS Energy, which is owned by holding company Fawaz Al Hokair Group, also plans to set up a wholly foreign-owned company in the zone that will serve as a platform for foreign investment in different construction and other projects in China, Shaanxi Daily reported yesterday.

The tie-up will spur the integration of industries and finance as well as boost the construction of new energy projects, PCG Power said. The Hefei-based firm also said it wants to help China’s new energies go global and to channel high-quality overseas resources through the JV.

PCG Power, which was set up in 2022, had raised CNY1.5 billion (USD207 million) in two fundraisers as of the end of last year. Backers include a number of photovoltaic giants including GoodWe Technologies and Yuneng Technology.

Editor: Kim Taylor