South Korea's Samsung Heavy Industries said it has agreed with Malaysia Marine and Heavy Engineering Sdn Bhd to form a joint venture specializing in repairing LNG carriers.

The new business entity to be in Malaysia will have initial capital of one million dollars with Samsung Heavy holding a 30 percent stake and its Malaysian partner the remainder, the South Korean shipbuilder said.

The venture will use the Malaysian firm's existing dockyard site and facilities to repair the liquefied natural gas carriers, it said.

Samsung Heavy will offer technology while its Malaysian partner human resources for the joint venture under the agreement, it said.