Australian company Austal has announced plans to sell its stake in its Chinese shipbuilding joint venture (JV). The move comes against a background of deteriorating Australian-Chinese relations and reflects the company's aims to build defence sales in the United States and Asia. Austal said in a notice to shareholders in late April that it has started talks with Chinese firm Guangdong Jianglong Shipbuilding to sell Austal's 40% shareholding in Aulong Shipbuilding: a JV set up between the two companies in Guangdong, China, in June 2016. Jianglong Shipbuilding holds the remaining 60% stake in Aulong Shipbuilding. Austal said that a letter of intent has been executed by the parties targeting completion of the negotiations by late October. Aulong Shipbuilding, which comprises two shipyards and employs about 1,000 people, was set up by Austal and Jianglong Shipbuilding to build commercial passenger vessels. An Austal spokesperson told Janes on 3 May, "Austal is negotiating to sell its shareholding in Aulong because the domestic ferry business hasn't grown like the company had envisaged five years ago when we established the JV."
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