China Nuclear Engineering Group Corp signed an agreement with Saudi Arabia on Tuesday to develop its homegrown fourth-generation nuclear technology in the oil-rich Middle East country.

Gu Jun, president and general manager of CNEC, said the agreement was a major step toward the export of high-temperature gas-cooled reactors, an indigenous nuclear technology jointly developed by CNEC and Tsinghua University.

He made the remarks during a ceremony in Beijing held by the Fuzhou New Economic Area, in which the Chinese company plans to invest nearly 16.3 billion yuan ($2.48 billion) to build a nuclear manufacturing equipment industrial cluster and a production base for nuclear graphite, a key material used in high-temperature gas-cooled reactors.