The Leizhou peninsula loop highway will be getting a makeover thanks to a RMB 150 million (US $24.4 million) agreement between Electricity Facilities Guangri Company (subsidiary of Guangzhou Iron and Steel Co.) and Nanhai Zhong Dong Group. 

The two companies signed an agreement for construction on the Najian and Datang segment of the Leizhou highway. The construction project includes installation of streetlights around the peninsula (including subsidiary for LED streetlights), supporting measures for the project (electrical wires and cables, smart city control systems, etc.), and construction engineering. Electricity Facilities will fund the initial investment. Zhong Dong Group will then pay construction fees, profits, and funding costs upon completion. 

Electricity Facilities anticipates the construction project to drive up product sales for their LED streetlights and electrical wires, as well as smart city controls. The company also has the chance to acquire return on investment (ROI). 

Guangzhou Iron and Steel Co.’s LED and cable business  has entered the “harvest season” after many years of developing technology, manufacturing, and marketing. The company anticipates LED product orders to gradually surge in 2014, which will contribute to the company’ overall profits. The Leizhou highway construction project by the company’s subsidiary is a step forward towards their diversification strategy.