(Bloomberg) -- Turkish engineering company Kontrolmatik Enerji ve Muhendislik AS signed a deal with China’s Harbin Electric Co. Ltd. to build a 1 gigawatt-hour energy storage facility in western Turkey, according to an exchange filing. Kontrolmatik surged in Istanbul trading after the statement. 

Kontrolmatik unit Progresiva Enerji Yatirimlari Ticaret AS inked an engineering, procurement and construction agreement with Harbin’s international unit in Ankara as the investor for the facility in Turkey’s Tekirdag province, according to a separate statement. No financial information on project size was provided. A $300 million loan for the project will be provided from China through Harbin International.

A wind power plant with 250 megawatt capacity will be built as part of the project, at about 40% capacity factor, Kontrolmatik said. Pomega, another Kontrolmatik unit, will provide the plant with storage systems, it said.

The project will allow Turkey to reach carbon emission reduction targets faster, Kontrolmatik Chairman Sami Aslanhan said at the signing ceremony, which was also attended by Turkey’s Vice President Cevdet Yilmaz. The Istanbul-based company will provide electricity and construction services to the project as part of the deal. The storage facility will be completed in 2025 and preliminary commissioning of the entire project is scheduled for 2027.

Harbin, among the top electric engineering companies and a major wind turbine maker in China, has undertaken several projects in Turkey, the latest one being a 650 million euro ($703 million) cardboard factory being built for Modern Karton of Turkey, a corrugated cardboard manufacturer.

Kontrolmatik rose as much as 8% to 286.5 liras in Istanbul trading, the highest level since Nov. 13. The shares gained 27% this year. Harbin shares were up as much as 3.1% in Hong Kong.

--With assistance from Kathy Chen.

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