STX to sell its Chinese shipyard

South Korea's STX Offshore & Shipbuilding Co Ltd is planning to sell its shipyards in China as it tries to cut its mounting debts.

STX Offshore's Chinese arm STX Dalian Shipbuilding Co is seeking a capital boost through sales of 40 percent of its shares, according to the company.

"With the help of Dalian Municipal government, Chairman Kang Duk-soo is in talks with some Chinese companies about the share sales," the company told Chinese domestic media.

The group set up its Dalian arm in 2007 with an investment totaling $1.5 billion. Pressed by mounting debts, the group said it is also considering selling shipyards in France and Finland.