Austal Australia will sell its 40 per cent shareholding in Aulong Shipbuilding, a joint venture that it formed with China's Jianglong Shipbuilding in June 2016.
In an Australian Securities Exchange regulatory filing dated April 28, Austal said a letter of intent has been executed by the parties targeting completion of the negotiations by October 31, 2021.
The transaction will leave Jianglong as the sole owner of Aulong, which was established primarily for the manufacture of commercial passenger vessels and non-military vessels for the Chinese market.
