Seoul  - South Korea's STX Group, the world's seventh largest shipbuilder, announced on Friday it had agreed to build a 430 million dollar shipyard in Azerbaijan with local partners.

STX said in a statement that the group would hold a 25 per cent stake in the shipyard and Azeri state oil company (SOCAR) would own 65 per cent, with the remainder to be held by the Azerbaijan Investment Co (AIC).

STX said it would be wholly responsible for the operation of the shipyard to be built by 2011.

Looking to expand internationally, STX has bought a 39 per cent stake in Aker Yards ASS, Europe's biggest shipbuilder, and plans to invest 150 million US dollars in Vietnam. The group also has a shipyard in China. (dpa)