Recently, Hengli Heavy Industry signed construction contracts for Very Large Crude Carriers (VLCCs) with several international shipping giants, securing orders for 12 ships within two weeks, with the total order value exceeding ten billion yuan.
On October 10, Guangdong Songfa Ceramics Co., Ltd. announced that the construction contracts for six 306,000 dwt VLCCs by its subsidiary, Hengli Shipbuilding (Dalian) Co., Ltd., were recently signed and became effective. The counterparties to these contracts are two well-known European shipowners, with a total contract value of approximately $6-9 billion USD (approximately RMB 4.269-6.403 billion). The new vessels will be delivered successively from the second half of 2026 to the first half of 2027.
For reference, data from Clarksons shows that the current newbuilding price for a 315,000-320,000 dwt VLCC is about $126 million USD, slightly lower than the $129 million USD from the same period last year.
Although Songfa did not disclose the specific information of the shipowners, according to foreign media reports, four of the new vessels were ordered by Dynacom Tankers, owned by Greek shipping magnate George Procopiou; the other two were ordered by Greek shipowner Laskaridis Maritime.
Both companies are “old customers” of Hengli Heavy Industry. Dynacom acquired two VLCC resale vessels from Hengli Heavy Industry in early last year, with the first ship, the “ALIAKMON I,” delivered just in June this year, which was also the first VLCC built by Hengli Heavy Industry. Furthermore, Sea Traders, George Procopiou’s bulk carrier company, placed an order for ten 82,000 dwt bulk carriers at Hengli Heavy Industry in July 2023, setting a record at the time for the largest single shipbuilding order signed by Hengli Heavy Industry. Last year, Sea Traders placed an additional order for four ships of the same type.
Laskaridis Maritime was one of the first overseas shipowners for Hengli Heavy Industry. In May 2023, Laskaridis Maritime signed a contract with Hengli Heavy Industry for the construction of four 82,000 dwt Kamsarmax bulk carriers, which was the first overseas order received by Hengli Heavy Industry since its commencement of operations. At the end of the same year, the company placed an additional order for six ships of the same type at Hengli Heavy Industry. Three of the total ten ships have been delivered, and the remaining seven will be delivered this year and next.
In addition to the aforementioned six VLCC orders, Hengli Heavy Industry also secured an order for six 306,000 dwt VLCCs in September from Frontline, a subsidiary of Norwegian shipping magnate John Fredriksen. The cost per ship is approximately $118 million USD, with the total price for six ships being about $708 million USD (approximately RMB 5.037 billion). These new vessels will be delivered successively from the second half of 2026 to the first half of 2027.
According to reports, this series of 306,000 dwt VLCCs by Hengli Heavy Industry is independently developed by the company. They are mainstream international large crude oil carriers, featuring large loading capacity, strong endurance, and high operational efficiency. The design of this ship type balances route adaptability and loading flexibility, allowing it to efficiently match the loading and unloading equipment of major global crude oil ports. It can meet the demands of transoceanic long-distance crude oil trunk line transportation and large-scale transportation from major oil fields to refineries. It is a crude oil carrier that aligns with the latest international tanker design concepts and meets the current international shipping market’s demand for large-scale, low-carbon transportation, fully demonstrating Hengli Heavy Industry’s independent innovation capability and technical strength in the field of high-end ship design.
According to reports, these 12 new orders are actually resale vessels from Hengli Heavy Industry. These VLCCs were originally ordered by Hengli Group, the parent company of Hengli Heavy Industry. According to Clarksons data, since the first order in 2023, Hengli Group has successively ordered 15 VLCCs from Hengli Heavy Industry. The first two were resold to Dynacom in early 2024, and four more were resold to an anonymous shipowner at the end of September. The remaining nine vessels currently still have Hengli Group listed as the owner.
Hengli Heavy Industry pointed out that this cooperation with several major shipping companies such as Norway’s Frontline, Greece’s Dynacom, and Laskaridis further enhances Hengli Heavy Industry’s position in the international shipbuilding market and will provide these shipping companies with high-quality, high-performance vessels to meet their business needs in the global shipping market.
As a private shipbuilding giant, Hengli Heavy Industry continues to make breakthroughs in the field of high-end shipbuilding. Relying on its advanced technological innovation and extensive shipbuilding experience, it has won the trust of many internationally renowned shipping companies. The signing of these projects not only demonstrates Hengli Heavy Industry’s strong capabilities in the shipbuilding field but also marks the further enhancement of its influence in the international shipping market.
The signing of these consecutive large orders not only helps promote the sustainable development of the shipping industry but also injects new vitality into the global shipping market. As the orders are delivered successively, Hengli Heavy Industry is expected to occupy a more important position in the global shipping market. In the future, Hengli Heavy Industry will continue to deepen cooperation with international shipping giants, persistently innovate and achieve breakthroughs in the field of high-end shipbuilding, further enhance the competitiveness of China’s shipbuilding industry in the global market, and contribute to the transformation of China from a major shipbuilding country to a strong shipbuilding nation.
It is understood that the predecessor of Hengli Heavy Industry, STX Dalian, was once the largest foreign-funded shipyard in China, possessing the largest single shipyard in Northern China. In 2022, responding to the national call, Hengli Group established Hengli Heavy Industry Group, spending RMB 2.11 billion to successfully bid for and acquire the long-idle former STX Dalian assets, which had been dormant for ten years, aiming to build a world-class high-end shipbuilding base. In January 2023, the first phase of Hengli Heavy Industry’s “Ocean Factory” became fully operational in just 150 days. In January of this year, the second-phase project—”Future Factory”—achieved operational status within 5 months. Meanwhile, the Hengli Heavy Industry Cooperation Innovation and Offshore Engineering Technology Industrial Park commenced construction on September 14 in Changxing Island, Dalian.
As of now, Hengli Heavy Industry has commenced construction on over 60 vessels and holds orders for approximately 170 ships, with its production schedule filled until 2029. Once all projects of Hengli Heavy Industry reach full production capacity, it will be capable of building over 150 very large ships annually, producing 180 marine engines (including G95 main engines and models below), and achieving full coverage of four dual-fuel types: LNG, LPG, methanol, and ammonia. It will become the world’s largest single-site shipbuilding base with the most complete supporting facilities.
