(Yicai Global) Feb. 1 -- China's Norinco International Cooperation Ltd. will work with its wholly-owned subsidiary to set up a new energy development company in Iran. The company's move aims to develop new energy projects in the Middle Eastern country.

Norinco will pair with its wholly-owned subsidiary China North Vehicle Corporation Ltd. to set up the new company in Iran's capital Tehran. Under the plan, Norinco International will invest USD990,000, holding 99 percent of shares, while the subsidiary will invest USD10,000, holding 1 percent.

The new joint venture company will mainly track, invest in, develop, construct and operate clean energy projects in Iran, said the firm in a statement yesterday. Norinco is a general contractor and construction engineering company known for its international projects.

Norinco has rich experience in implementing contract projects and enjoys sound cooperation relations with the government of Iran on many levels, the statement said, adding that the Iranian government supports the company to develop new energy projects in the energy-rich country. Norinco will actively communicate with the government on investment and development of new energy projects to reduce possible risks concerning project development, it said.