Paraíba Governor João Azevêdo has said an unidentified Chinese group of companies intends to build a 3 billion real (about US$791.7 million) shipyard in his northern Brazilian state, TV Master reports.

The online television channel quotes Mr Azevêdo as saying the environmental regulator in Paraíba has given permission for the project.

Mr Azevêdo said he expected the state government to award the Chinese group next month a contract to run the shipyard for 10 years.

He hopes building work will begin next year and that the shipyard will open for business in two years.

Mr Azevêdo has been in touch with the British, Chinese, German, Japanese, Portuguese and Spanish ambassadors in Brasilia in an effort to lure investors to Paraíba, TV Master says.