Hengli Heavy Industry
Hengli Heavy Industry,ย from Dalian,ย is the new Shipbuilding Industry Giant. Delivered its first 306,000 deadweight tonnage (DWT) very large crude carrier (VLCC) this year, designed and built entirely in-house [1]. The Chinese shipyard achieved this milestone just three years after its founding in 2022, positioning itself to become the world’s largest single shipbuilding base [1].
The shipyard set another industry record by launching the world’s largest vessel constructible from a slipway โ a 181,000 DWT bulk carrier [1]. These developments signal Hengli’s rapid establishment among global shipbuilding leaders through advanced production capabilities and technical expertise.
Hengli currently maintains more than 70 vessels under construction, with confirmed orders extending to 2029 [1]. The company plans to invest 13.5 billion yuan ($1.9 billion) in expansion projects designed to increase manufacturing capacity [3]. This expansion includes a green, smart vessel plant and specialised workshops for advanced production requirements.
The shipyard holdsย 176 vessel orders totalling 28 million DWT โ ranked first globally โ and targets an annual capacity of 20 million DWT [3]. Hengli became the first shipbuilder worldwide to simultaneously launch four 306,000 DWT VLCCs [3], establishing new benchmarks for production efficiency in maritime manufacturing.
This rapid growth positions China’s newest major shipyard as a significant factor in global maritime construction trends and competitive dynamics.
Hengli’s Rise: From Newcomer to Global Leader
Hengli Heavy Industry’s emergence represents a significant shift in global maritime manufacturing dynamics. The Chinese enterprise has established itself as a formidable competitor within three years of operation, challenging established shipbuilders through strategic acquisitions and rapid capacity expansion.
Founded in 2022: A brief history
Hengli Heavy Industry was established in April 2022 as a subsidiary of Hengli Group, a major Chinese conglomerate active in petrochemicals, textiles, and real estate. Entrepreneur Chen Jianhua led the parent company’s strategic diversification into shipbuilding amid growing maritime vessel demand.
The company began operations with a focus on obtaining necessary certifications and assembling experienced shipbuilding teams. Unlike traditional shipyards that evolved gradually over decades, Hengli was designed from inception as a technologically advanced operation incorporating modern vessel design and construction processes.
Acquisition of STX Dalian shipyard
Hengli’s development accelerated in late 2022 when the company acquired the former STX Dalian shipyard in northeastern China. The facility, once among Asia’s largest shipbuilding complexes, had entered bankruptcy following the global shipping industry downturn.
The acquisition provided Hengli with substantial existing infrastructure, including massive drydocks capable of constructing very large crude carriers (VLCCs). The shipyard’s location offered deep-water access and proximity to steel manufacturers. Most significantly, the site included valuable shipbuilding licenses and permits that would have required years to obtain independently.
Hengli immediately initiated a modernization program following the acquisition. The company upgraded facilities, implemented automation systems, and recruited skilled workers from the broader China shipbuilding industry corporation network.
Key milestones in the first three years
Within six months of operations, Hengli secured its first international order for bulk carriers. By mid-2023, the company had commenced construction on its first VLCC, demonstrating technical capability for such a young enterprise.
The shipyard reached a production milestone in 2024 when it delivered its first completed vessels to international clients. Quality and timely delivery established Hengli’s reputation for reliability. The company subsequently signed contracts with major shipping companies, including Mediterranean Shipping Company (MSC) and Capital Maritime.
The company’s order book expanded from initial projects to over 200 vessels, valued at approximately $18 billion. The portfolio includes crude carriers, specialized chemical tankers, and bulk carriers, demonstrating production diversity.
Hengli maintained strategic focus on dual-fuel and green vessel technology throughout this growth phase. This approach has attracted environmentally conscious clients and positioned the company as an innovator in sustainable shipbuilding practices.
Production Technology and Manufacturing Capabilities
Image Source: Fabricating & Metalworking
Hengli’s manufacturing complex entered full operation in early 2025 [1], featuring advanced automation systems across its production facilities. The shipyard operates 17 super-large workshops capable of large-scale vessel construction [3].
Automated manufacturing systems
The facility deploys automated welding robots that maintain precision across complex vessel joints, improving structural integrity while reducing construction time [2]. Hengli’s dynamic steel plate printing technology [1] provides precise marking and layout directly onto steel components, eliminating manual layout errors and reducing material waste.
Advanced cutting systems handle steel components of varying thickness and complexity. Smart production lines perform automated cutting, welding, grinding, sorting, and warehousing operations [1].
Large-scale construction methods
Hengli employs large-block and grand-block assembly techniques [1], constructing massive pre-assembled sections before final joining. This approach enables construction of larger vessels including VLCCs and mega-containerships [3].
The facility includes two docks measuring 860 meters in length [1], providing space for simultaneous construction projects. This infrastructure enabled Hengli to complete its second-phase expansion at Changxing Island in 153 days [3].
Vessel specialization
Production focuses on high-value vessel types, including VLCCs, VLGCs, mega-containerships, FPSOs, floating wind power equipment, and drilling platforms [3]. The facility’s capabilities position Hengli among established shipbuilding industry leaders while setting new production efficiency standards in maritime manufacturing.
Production Powerhouse: Capacity and Order Book
Image Source: Splash247
The shipyard secured approximately 115 vessel orders in 2025 alone, valued at more than $14 billion [7]. Once completed, the Dalian base expects to achieve an annual output of 150 billion yuan, creating the world’s largest shipbuilding complex at a single site [8].
Major vessel types
The shipyard has diversified its portfolio to include VLCCs, VLGCs, large containerships, FPSOs, and offshore engineering equipment [4]. Hengli’s 176 vessels totaling 28 million DWT rank first globally among shipbuilders [6]. The company’s production capabilities span from the record-setting 181,000 DWT bulk carrier to its flagship 306,000 deadweight tonnage VLCCs [1] [1].
International client base
Capital Maritime & Trading maintains an active relationship with Hengli, ordering two capesize bulk carriers for late 2026 delivery [9]. The Greek shipping company previously contracted four capesize bulk carriers and two 306,000 DWT VLCCs scheduled between 2027 and 2028, with VLCC deliveries in the second half of 2028 [10] [10].
Mediterranean Shipping Company (MSC) has placed significant orders alongside other leading Greek shipowners including John Fredriksen and George Procopiou [9] [11]. Eastern Pacific Shipping contracted twelve newbuildings: six VLCCs, two LNG dual-fuel Suezmax tankers, and four 6,000 TEU container ships [12].
Market positioning
Hengli’s expansion supports China’s dominance in global shipbuilding orders. The country captured 54% of global orders in Q1 2025, rising to 67% in Q2 before maintaining 65% in Q3 [5] [7]. The yard’s confirmed deliveries through 2029 demonstrate market confidence in its production capabilities and position among established shipbuilding leaders [8] [12].
Strategic Expansion and Green Innovation
Dalian facility expansion
The shipbuilding company allocated approximately 10 billion yuan of its expansion budget specifically for a green and smart high-end vessel manufacturing plant, with remaining capital directed toward land-based production facilities [6]. This development will establish Hengli’s Dalian complex as potentially the world’s largest single shipyard site [11].
Advanced production capabilities
The Phase II expansion at Changxing Island industrial park broke ground in August 2024 [14]. This facility focuses on high-value-added vessels and maritime equipment, including VLCCs, liquefied gas carriers, ultra-large container ships, and offshore platforms [14]. The facility will process 2.3 million tons of steel annually at full operational status [1].
Hengli’s expansion includes specialized curved hull block and pre-outfitting workshops [6]. The shipyard plans to commence construction on over 30 vessels this year while processing nearly 500,000 tons of steel plates [15]. Maximum capacity projects approximately 60 vessel deliveries annually [15].
Engine production and alternative fuels
Hengli delivered its first domestically produced marine engine in September 2024 [1], addressing supply chain constraints in the sector. The second phase of the engine production facility began operating with China’s first domestically produced LPG dual-fuel 6G60 engine [1].
The company projects annual production of 180 engines at full capacity [14] [1], with capabilities spanning four low-carbon and zero-carbon fuel types: LNG, LPG, methanol, and ammonia [1] [16]. This development addresses industry requirements for alternative propulsion systems as maritime regulations continue to evolve.
Global Maritime Manufacturing Shifts
China retained its position as the world’s leading shipbuilder in 2025, capturing 63% of the global market despite its first five-year decline in market share [17]. Chinese shipyards secured 35.4 million compensated gross tonnage (CGT) of new vessel orders last year [17].
The dominance extends across vessel categories. China continues to lead bulk carrier and container ship orders despite recent challenges from US trade tensions [17]. China, South Korea and Japan collectively account for 96% of global shipbuilding by gross tonnage, with China alone responsible for 53% [18].
Hengli’s rapid ascent
Hengli Heavy Industry has climbed to sixth place among Chinese shipbuilders within just three years of establishment [19]. The company received substantial government backing, collecting nearly $46 million in government grants in 2025 alone [20].
The shipyard’s international appeal has attracted orders from prestigious Greek and Norwegian shipowners [20]. Foreign companies account for 75% of Hengli’s orders [21], demonstrating the yard’s global competitiveness.
Environmental technology leadership
Hengli produces China’s first domestically manufactured LPG dual-fuel engines and methane dual-fuel 8G95 engines [1]. This focus on low-carbon technologies aligns with global maritime decarbonization requirements.
The company’s massive production capacity affects global vessel pricing and competitive dynamics [20]. The global logistics community will face a significant influx of new bulk and product tonnages in the second half of the decade [20].
These developments signal a fundamental restructuring of maritime manufacturing, with implications extending beyond China’s borders to shipping companies and cargo owners worldwide.
China’s Shipbuilding Shift
Hengli Heavy Industry’s rapid establishment reflects broader changes in global maritime manufacturing dynamics. The company’s three-year ascent from startup to major shipbuilder illustrates how strategic investment and advanced production capabilities can reshape industry hierarchies.
Hengli Heavy Industry’s rapid rise highlights broader shifts in global maritime manufacturing. The company’s three-year journey from start-up to major shipbuilder shows how strategic investments and state-of-the-art production can reshape industry rankings. Hengli’s “Future Factory” automation systems exemplify modern trends towards digitalised manufacturing in the maritime sector. The facility’s robotic welding, steel plate printing, and intelligent production lines set new operational standards that other shipyards may need to follow to stay competitive.
The firm’s 13.5 billion yuan investment in Dalian focuses on green shipbuilding technologies and dual-fuel propulsion systems. This focus on LNG, LPG, methanol, and ammonia-capable engines positions Hengli to meet changing environmental regulations worldwide. The yard’s production capacity and technological approach are likely to influence vessel availability and prices in the latter half of the decade. Shipping lines, cargo owners, and logistics providers will need to factor in this increased capacity when planning fleet requirements and cargo strategies.
Key Takeaways
Hengli Heavy Industry’s meteoric rise from startup to global shipbuilding leader demonstrates how strategic investment and advanced technology can rapidly transform an entire industry.
โข Hengli achieved unprecedented growth, becoming the 6th largest Chinese shipbuilder within just 3 years since founding in 2022 โข The company’s “Future Factory” uses cutting-edge automation including robotic welding, dynamic steel printing, and smart production lines โข With 200+ vessels in backlog through 2029 and $18 billion in orders, Hengli ranks first globally by total vessel orders โข Strategic 13.5 billion yuan investment focuses on green shipbuilding and dual-fuel engines for LNG, LPG, methanol, and ammonia โข Hengli’s rapid expansion strengthens China’s dominance, now controlling 53% of global shipbuilding market share
This transformation showcases how technological innovation and massive capital investment can disrupt traditional industries, setting new standards for production efficiency and environmental sustainability in maritime manufacturing.
References
[1] – https://dredgewire.com/hengli-heavy-industries-set-to-become-worlds-largest-single-shipbuilding-base/
[2] – https://www.caixinglobal.com/2026-01-16/chinese-shipbuilder-hengli-to-invest-19-billion-to-beef-up-capacity-102404361.html
[3] – https://splash247.com/hengli-heavy-plans-1-94bn-capacity-expansion/
[4] – https://www.seatrade-maritime.com/shipyards/hengli-heavy-industry-launches-shipyard-expansion
[5] – https://www.rivieramm.com/news-content-hub/news-content-hub/chinas-hengli-shipbuilding-bags-third-government-subsidy-in-two-months-worth-us100m-85770
[6] – https://maritime-executive.com/article/china-s-hengli-claims-industry-first-floating-four-vlccs-simultaneously
[7] – https://www.rivieramm.com/news-content-hub/news-content-hub/these-shipyards-drive-chinas-dominance-in-the-global-shipbuilding-industry-84324
[8] – https://www.marineinsight.com/shipping-news/chinas-hengli-heavy-industry-claims-global-first-with-simultaneous-float-out-of-4-vlccs/
[9] – https://www.lloydslist.com/LL1155170/Hengli-Heavy-secures-five-bulker-orders-expands-investment-in-Dalian
[10] – https://www.seatrade-maritime.com/shipyards/hengli-heavy-industry-investing-1-27-billion-in-shipyard-expansion
[11] – https://splash247.com/capital-maritime-adds-capesize-brace-to-expanding-chinese-orderbook/
[12] – https://shippingtelegraph.com/shipyard-news/hengli-secures-orders-for-vlccs-and-capesizes-from-two-major-shipowners/
[13] – https://www.seatrade-maritime.com/tankers/eastern-pacific-shipping-orders-12-newbuilds-at-hengli
[14] – https://investinchina.chinadaily.com.cn/s/202408/20/WS66ea7736498ed2d7b7eb9ba8/dalians-changxing-island-launches-significant-shipbuilding-and-maritime-equipment-project.html
[15] – https://www.prnewswire.com/news-releases/over-30-vessels-to-be-constructed-by-hengli-this-year-302194555.html
[16] – https://mykn.kuehne-nagel.com/news/article/msc-returns-to-hengli-heavy-for-10-more-lng-d-19-Dec-2024
[17] – https://dredgewire.com/chinas-shipyards-still-lead-the-world-but-us-threats-took-a-toll-in-2025/
[18] – https://www.ijsrtjournal.com/article/Full+Steam+Ahead+Chinas+Rise+in+the+Global+Shipbuilding+Industry
[19] – https://asia.nikkei.com/business/transportation/chinese-chemical-group-hengli-grows-quickly-into-major-shipbuilder
[20] – https://ean-network.com/hengli-heavy-industry-eight-new-ships-and-an-order-book-full-until-2029/
[21] – https://www.csis.org/analysis/china-dominates-shipbuilding-industry
