(Yicai) Oct. 18 -- TCL Zhonghuan Renewable Energy Technology, the world's largest supplier of photovoltaic monocrystalline silicon wafers, has inked a deal with Saudi Arabia's Vision Industries to build a solar crystalline wafer factory in the Middle Eastern country.

The project's first phase will have a capacity of 20 gigawatts, the Tianjin-based firm announced late yesterday. Products made by the plant will be mainly sold in the Middle East and Africa, it added, without disclosing any financial details.

In May, TCL Zhonghuan and Vision Industries agreed to set up a joint venture in Saudi Arabia to build a PV crystalline wafer plant. The Chinese firm has completed the registration of its Singapore-based unit LumeTech through which it will invest in the JV.

TCL Zhonghuan had an annual output capacity of 165 GW of monocrystalline silicon wafers as of June 30, with that set to rise to 180 GW by the end of this year. Its operating income rose 10 percent to CNY34.9 billion (USD4.8 billion) in the first half from a year earlier, with net profit jumping 56 percent to CNY4.5 billion.

Riyadh-based Vision Industries was founded in 2021 by two large Saudi conglomerates, Abunayyan Holding and Al Muhaidib Group, to capitalize on the growth potential of the country’s renewables market, according to its website.

The Saudi energy ministry launched the National Renewable Energy Program in 2017, aiming to have 58.7 GW of installed new energy capacity by 2030, accounting for half of all power generated in the country. Saudi Arabia plans to invest SAR1 trillion (USD266.6 billion) to produce clean energy, its energy minister said on Jan. 30.

Shares of TCL Zhonghuan [SHE: 002129] dropped 3.7 percent to CNY20.50 (USD2.87) in Shenzhen today. To date, te stock is down 32 percent this year.

Editor: Martin Kadiev