A leading European environmental service provider will build a ship demolition facility in south China's Guangdong Province, a local publicity official said Friday.

Veolia Environment's south China plant will be its first modern ship demolition research and development center, as well as an advanced ship demolition plant that can demolish freighters with a light displacement of up to 800,000 tonnes, said Lin Yingqing, deputy director of the publicity department of the Xinhui District of the city of Jiangmen, where the plant will be located.

Veolia will spend about 1 billion yuan (161 million US dollars) to complete the plant's construction within three years.

Major products, including renewable materials, recycling equipment and solid waste, will be purchased or dealt with by relevant organizations.

Xinhui has been a primary center for ship demolition over the last three decades and the new plant is hoped to solve related environmental issues, increase efficiency and reduce potential safety hazards, Lin said.