Australian shipbuilder Austal is exiting the Chinese shipbuilding sector, selling its 40% stake in Aulong Shipbuilding to joint venture partner Jianglong Shipbuilding.

Jianglong, which currently owns a 60% stake, will become the sole owner of Aulong once the deal has been concluded.

“A letter of intent has been executed by the parties targeting completion of the negotiations by 31 October 2021,” Austal said in a statement to the Australian exchange.