China Ocean Shipbuilding has entered into a RMB508m (USD 82.5 million) joint venture agreement with two investment companies in Zhoushan to invest in shipbuilding and related ocean engineering business in the city, the company said in a release.

The joint venture, Zhoushan China Ocean Investment Fund, will provide equity investment services, asset management services in shipbuilding and related sectors, and consultancy services.

China Ocean Shipbuilding will assign RMB400m to get 78.7% equity of the joint venture. The other two investors Zhoushan Zhouyi Investment Management Partnership Enterprise and Zhoushan Marine Comprehensive Development and Investment will allocate RMB8m, RMB100m each.

“The joint venture can make use of the experience, expertise and connections of the aforesaid parties to make appropriate investment and establish a platform in Zhoushan for engaging in the shipbuilding and the ocean engineering industry,” the company’s announcement read.

The term of the operation of the JV is set to 8 years from the date of issue of the business license. Subject to the approval of all the parties, the term of operation may be extended for a further period of 2 years.