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 .

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