(Yicai Global) Oct. 19 -- Chinese optical cable maker Jiangsu Zhongli Group is teaming up with state power development giant China Huadian Corporation to build two-gigawatts of photovoltaic power stations in the deserts of northwest China's Ningxia Hui Autonomous Region.

There will be a 1GW central solar power plant and distributed sub-stations across Ningxia, Zhongli said yesterday. Most of the investment will come from Huadian and Changshu, southeastern Jiangsu province-based Zhongli will serve as the general contractor. The pair intend to build more projects in the region in future.

Beijing-based Huadian will also acquire 400 megawatts of PV power plants that Zhongli has already built in Ningxia, Zhongli said. Although Zhongli’s main business involves wires and cables, its unit Talesun Solar specializes in PV products. Talesun has already built 11GWs of solar power stations at home and abroad and can produce 15GW a year of solar panels.

This is the second partnership between Zhongli and Huadian. In July they agreed on 2.5GW of photovoltaic projects in northern Hebei province.

Zhongli’s share price [SHE:002309] gained over 4 percent in early trading today before ending the day up 0.51 percent at CNY5.88 (USD0.90).

Editor: Kim Taylor