Italian yard giant Fincantieri is planning to create a shipbuilding hub in Sicily.
The ANSA news agency said it has signed a memorandum of understanding with Western Sicilian Port Authority (AdSP) to establish facilities in Palermo.
The agreement entails completion of a dry dock with a gross capacity of 150,000 tonnes and the construction of a 300-metre quay in the northern area of the port.
"Our goal is to back Palermo in achieving a leading role in the world shipbuilding market, creating a hub capable of generating employment and giving the young people of Sicily a perspective for the future," the president of the port authority, Pasqualino Monti, said.
