Australia’s largest defence exporter, Austal, has begun talks to sell its 40 per cent stake in a Chinese shipbuilding joint venture set up five years ago amid deteriorating relations between the two countries.In 2016, the West Australia-based shipbuilder established Aulong Shipbuilding, a joint venture with Jianglong Shipbuilding, to build commercial passenger and non-military vessels for the Chinese market. Austal provided the designs for the ships.
Aulong Shipbuilding, Austal’s only China-linked business, produced 12 commercial and passenger ferries over its lifetime. It is understood the venture was well below 1 per cent of Austal’s revenue, which totalled $2.1 billion in the year ended last June 30.
“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,” an Austal spokesperson said....MORE
