(Yicai) July 17 -- Shares of Jinko Solar rose after the Chinese solar modules giant said it will establish a photovoltaic joint venture with a total investment of SAR3.7 billion (USD990 million) with two local partners in Saudi Arabia.

Jinko [SHA: 688223] jumped 3.4 percent to CNY7.61 (USD1.05) a share as of 11.10 a.m. in Shanghai today, after earlier surging by as much as 6.7 percent.

Jinko unit will set up the solar venture with Renewable Energy Localization, a subsidiary of the Public Investment Fund of Saudi Arabia, and Vision Industries, the Shanghai-based firm announced yesterday. The two units will each own 40 percent of the JV, with VI holding the rest, it added.

The project will likely have an annual capacity of 10 gigawatts of photovoltaic cells and solar modules each after it becomes fully operational, becoming the largest overseas manufacturing base for China's related industry, an executive from Jinko told Yicai, adding that it is also the company's largest investment project abroad.

The corresponding shareholding agreement will help Jinko thoroughly implement its global development strategy, accelerate the layout and positioning of its overseas production capacity, expand its market share abroad, and enhance its core competitiveness and profitability, according to the company.

The funds for the project's construction are mainly self-owned or self-raised by the JV, which will not adversely impact Jinko's financial and operating status, the firm noted.

According to Saudi Arabia's 'Vision 2030,' the Middle Eastern country will have a renewable energy output of 58.7 GW by 2030, with 40 GW generated by solar power.

During the SNEC 2024 International PV Power Generation and Smart Energy Conference & Exhibition held in Shanghai from June 13 to 15, Jinko announced it inked a deal with Saudi's ACWA Power to enhance the synergy of businesses in renewable energy construction and other fields. The pair had already allied on PV module projects with a cumulative capacity of over 10 GW.

Jinko's market share in Saudi Arabia exceeded 70 percent last year, according to the executive.

Jinko has a market share of 45 percent in the Middle East, almost covering the majority of nations in the region, Chairman Li Xiande pointed out recently. In May, the company said its market share in the area exceeded 40 percent while it has also secured many long-term orders.

Editor: Martin Kadiev