On September 4, Hengli Heavy Industry announced that it had received an order for 2+2 Very Large Crude Carriers (VLCCs) from a European shipowner, presenting a practical gift for the September 3rd celebration and contributing to the new development of China’s maritime industry.
According to an announcement released by Guangdong Songfa Ceramics Co., Ltd., the counterparty to this contract is a well-known European shipowner. The contract involves two 306,000 DWT VLCCs, with a total contract value of approximately $200-300 million (about RMB 1.428-2.143 billion), payable in US dollars. The vessels are scheduled for delivery successively in the second half of 2026.
For reference, data from Clarksons shows that the current newbuilding price for a 315,000-320,000 DWT VLCC is about $126 million, slightly lower than the $129 million from the same period last year.
The announcement indicates that the 306,000 DWT VLCCs contracted by Hengli Heavy Industry are internationally mainstream large crude oil carriers, characterized by large capacity, long range, and high operational efficiency. This ship type is designed to balance route adaptability and loading flexibility, can efficiently match the loading and unloading equipment of major global crude oil ports, and meets the needs of long-distance transoceanic crude oil trunk line transportation and large-scale transport from oil fields to refineries. It is a crude oil carrier that conforms to the latest international tanker design concepts and meets the current international shipping market’s demand for large-scale, low-carbon transportation, fully demonstrating the company’s independent innovation capability and technical strength in the field of high-end ship design.
This is the first order directly signed by Hengli Heavy Industry with a European shipowner since its entry into the VLCC construction sector in 2023. It is understood that in September 2023, Hengli Heavy Industry received its first order for two VLCCs from its parent company, Hengli Group. That order marked Hengli Heavy Industry’s initial foray into the tanker market.
Starting with that first order in 2023, according to Clarksons data, all 15 VLCC orders received by Hengli Heavy Industry to date have been placed by Hengli Group. In early 2024, Hengli Group resold the first two VLCCs ordered in September 2023 to Dynacom, a subsidiary of Greek shipping magnate George Procopiou, for a price as high as $122 million per vessel. In comparison, the price of VLCCs ordered by Dynacom at New Times Shipbuilding and Dalian Shipbuilding in 2023 was around $115 million.
Hengli Heavy Industry stated that VLCCs, as the “juggernauts” of maritime transport, feature large deadweight tonnage and high transport efficiency, making them crucial tools for global crude oil transportation. Their construction requires high technical standards and complex processes, and has always been an important indicator of a shipyard’s comprehensive strength. The ability to cooperate with a renowned European shipowner and sign a VLCC construction contract fully demonstrates Hengli Heavy Industry’s exceptional capabilities in the field of shipbuilding.
In June of this year, the first 306,000 DWT VLCC built by Hengli Heavy Industry, the “ALIAKMON I”, was officially named and delivered to Dynacom, marking a breakthrough from “0” to “1” for Hengli Heavy Industry in the field of very large vessel construction. The vessel was independently developed and designed by Hengli Heavy Industry. It has an overall length of 332.8 meters, a molded breadth of 60 meters, a molded depth of 30 meters, and a speed of 14.5 knots. Classed by Lloyd’s Register, it has significant features such as fast speed, light lightship weight, and low energy consumption, with all performance and environmental indicators reaching industry-leading levels.
The successful construction of the first VLCC not only provided Hengli Heavy Industry with valuable experience but also earned it a good reputation in the international ship market, laying a solid foundation for this cooperation with the European shipowner.
It is understood that the predecessor of Hengli Heavy Industry, STX Dalian, was once China’s largest foreign-invested shipyard, possessing the largest single shipyard in northern China. In July 2022, to implement the State Council’s decisions on revitalizing存量资产 (existing assets) and expanding effective investment, Hengli Group specifically established Hengli Heavy Industry Group, cross-industry entering the shipbuilding manufacturing sector. It spent RMB 2.11 billion to acquire the long-idle former STX Dalian assets through auction, aiming to fully build a world-class high-end shipbuilding base, focusing on developing shipbuilding, offshore engineering, engines, precision casting, and other sectors.
In January 2023, the first phase of Hengli Heavy Industry’s project, the “Ocean Factory”, officially commenced production. In January of this year, the second-phase project—the “Future Factory”, built with an investment of nearly RMB 10 billion, began operations. The “Future Factory” focuses on high-value-added green ships and high-end offshore equipment manufacturing such as VLCCs, Very Large Gas Carriers (VLGCs), ultra-large container ships, Floating Production Storage and Offloading (FPSO) vessels, offshore floating wind power, and drilling platforms. Upon full production, Hengli Heavy Industry will be able to process 2.3 million tons of steel annually, produce 180 marine engines per year, and achieve an annual output value exceeding RMB 70 billion, becoming the world’s largest single-site shipbuilding base with the most complete supporting facilities, and achieving full coverage of LNG, LPG, methanol, and ammonia dual-fuel engines.
Meanwhile, Hengli Heavy Industry became a wholly-owned subsidiary of the listed company Songfa Shares in the first half of this year. Currently, Songfa Shares is raising nearly RMB 4 billion in supporting funds through the capital market to support Hengli Heavy Industry’s strategic development, investing in the construction of two major projects: “Hengli Shipbuilding (Dalian) Co., Ltd. Green High-end Equipment Manufacturing” and “Hengli Heavy Industry Group Co., Ltd. International Ship R&D and Design Center (Phase I)”.
In the first half of 2025, Hengli Heavy Industry actually achieved a net profit of approximately RMB 722 million and a non-GAAP net profit of about RMB 659 million. Currently, both the order backlog and the number of new orders at Hengli Heavy Industry rank among the top global large ocean-going ship manufacturers, with production scheduled until 2029. According to Clarksons data, as of the end of July this year, Hengli Heavy Industry ranked 8th among global single shipyards with an order backlog of 114 vessels, approximately 4.6 million CGT.
In the future, Hengli Heavy Industry will continue to adhere to an innovation-driven development strategy, constantly enhance its own strength, create more high-quality ships with more advanced technology and superior products, forge ahead on the path of building a strong maritime nation, and contribute more Hengli wisdom and Hengli strength to China’s transition from a major shipbuilding country to a shipbuilding power and to the grand goal of achieving a strong maritime nation.
