Japan’s Tsuneishi Holdings is pressing ahead with plans for a new shipyard in Indonesia.

The Hiroshima-based company is said to be teaming up with local business group Kalla on the project on the island of Sulawesi, situated between Borneo and the Maluku Islands. A partnership contract between the two parties will be signed soon, according to Asian Nikkei review.

The yard will be located in Pinrang, one of the 21 regions in southern Sulawasi.