Dalian to become global leader in green ship building

Dalian to become global leader in green ship building

Amid the strong growth in China’s shipbuilding industry, Dalian is navigating a course to becoming a global leader in green ship and marine equipment construction, repairs and retrofitting work. The port city in Liaoning province is aiming to surpass an industrial scale of CNY100 billion in 2027. In the Dalian Changxing Island Economic and Technological Development Zone, shipbuilder Hengli Heavy Industries (HHI) has already solidified its manufacturing credentials in a relatively short period of time. At the beginning of the year, two 82,000-deadweight-ton bulk carriers were delivered, marking the first time the company completed the delivery of two ships in a single day since it began full operations in 2023.

The new shipbuilder achieved other breakthroughs last year, including its first ship delivery, its first engine delivery, and the launch of its first 306,000-metric-ton very large crude carrier (VLCC). “Currently, our shipbuilding orders are scheduled until 2028,” said Chen Jianhua, Chairman of Hengli Group. Hengli Heavy Industries is designing and constructing high-value green ships of the highest standards and the fastest speeds, Chen added. “After achieving full production, it is expected we will process 2.3 million tons of steel plates annually, build 150 large ships, and produce 180 engines, becoming the world’s largest single shipyard,” he said.

The global maritime industry is undergoing an industrial transformation toward a green and low-carbon future, accelerated by digital and intelligent technology, said Li Yanqing, Secretary General of the Beijing-based China Association of the National Shipbuilding Industry. Li made the remarks in Dalian last month at a conference on the development of the city’s marine equipment industry for high-tech shipbuilding. The conference attracted representatives of around 200 domestic and international enterprises from countries including South Korea, Japan, Finland, the United Kingdom, Germany, and Norway. In 2024, China’s shipbuilding completion, new order, and order backlog volumes accounted for 55.7%, 74.1%, and 63.1% of the global market share, respectively, according to the Ministry of Industry and Information Technology (MIIT). The data showed continuous growth, with both the new order and order backlog volumes the highest in China’s shipbuilding history.

With over 78.5% of global green product orders and full coverage of mainstream ship types, the achievements of China’s shipbuilding industry in the move to green and low-carbon production were outstanding in 2024. China’s shipbuilding industry is advancing toward mid- and high-end manufacturing through accelerated technological innovation, said Professor Zhang Hongpeng from the Dalian Maritime University. In December 2023, the Ministry of Industry and Information Technology (MIIT) and several other departments issued an action plan for the green development of the shipbuilding industry (2024-2030). Zhang said more designs and equipment are now being independently developed. “All ship types in the market are gradually covered, and the design, processing technology, and management levels are continuously improving,” he said.

China’s shipbuilders need to unite the world’s best suppliers and service providers to jointly build a global ecosystem for the sustainable development of the industry, said Li Yanqing in an interview with China Ship News in early February. In addition to predicting market changes and promoting technological innovation, shipbuilders need to effectively control costs, ensure production safety, and deliver high-quality products, he said.

China’s shipbuilding industry has been developing for more than 40 years in the international market, and its products have gained the trust of shipowners worldwide, he added. Thirty-four shipbuilding and marine engineering projects were signed at the Dalian conference, covering areas such as green and intelligent upgrades, raw materials, ship and marine engineering equipment, marine intelligent manufacturing, and construction of industrial parks. Liaoning province has historically been an important base for China’s shipbuilding industry. The country’s first 10,000-ton ship, first drilling platform, and first aircraft carrier were all produced in Dalian, the China Daily reports.

The South China Morning Post adds that Chinese shipyards are building large new car transport vessels at an unprecedented pace as China looks to gain greater control over global shipping and help electric vehicle makers such as BYD drive forward their overseas expansion. The latest hulking ship – capable of carrying 8,600 cars – was assembled and delivered in just 200 days by Shanghai Waigaoqiao Shipbuilding Co. The nearly 200-meter-long roll on/roll off (ro-ro) vessel will be operated by a subsidiary of the state-owned conglomerate COSCO. The ship’s maiden voyage will see it carry more than 5,700 vehicles – both cars and construction vehicles – from Shanghai to major European ports including Bristol in the United Kingdom, Zeebrugge in Belgium and Bremerhaven in Germany. It is part of a broader Chinese strategy to create its own shipping fleet to transport cars around the world, ensuring that China’s carmakers have stable access to transport capacity as they seek to ramp up their exports. The new vessel is “the largest ship operated by a Chinese shipowner, marking a key step in the strategy of ‘national vehicles and national transport’”, said Li Gang, Communist Party Secretary of the ship’s owner, China Citic Financial Leasing. China’s status as the world’s dominant shipbuilder has become a growing source of concern for the United States, which recently proposed draconian penalties for ports that host Chinese-built vessels.