Hengli Heavy Industry investing $1.27 billion in shipyard expansion

The Group is planning to invest RMB9.2 billion ($1.27 billion) in Hengli Heavy Industry’s industrial park at Changxing island, Dalian. The expansion will bring the annual shipbuilding capacity of the yard to 7.1 million tons with enlarged production scale of VLCCs, VLGCs, large-size containerships, FPSOs, and high value-added offshore engineering equipment. 

Hengli Heavy Industry officially launched commercial operation last year after the restructuring from STX Dalian yard, which has already delivered two vessels ahead of schedule. 

The shipyard currently has over 30 newbuilding orders on hand.

Chinese shipbuilders continue to enjoy a buoyant market and according to the China Association of the National Shipbuilding Industry (CANSI) received 24.14 dwt million in newbuilding orders in Q1 2024 up 59% year-on-year.

This year has seen a rebound in tanker orders including VLCCs while container ships have continued to be ordered despite expectations of a fall off in orders.