Following the successful commencement of operations at the Phase II “Future Factory” earlier this year, Hengli Heavy Industry has embarked on another major strategic move—the official groundbreaking of the Cooperation Innovation and Offshore Technology Industrial Park. This marks a new clarion call for the Hengli Group to accelerate the building of a world-class high-end shipbuilding and offshore equipment manufacturing base.
On September 14, the groundbreaking mobilization meeting for the Hengli Heavy Industry Cooperation Innovation and Offshore Technology Industrial Park was grandly held in Dalian Changxing Island, signifying new measures by the Hengli Group in supporting the national manufacturing powerhouse strategy and a further upgrade of the group’s modern industrial supporting system. Hao Peng, Secretary of the Liaoning Provincial Committee and Director of the Standing Committee of the Provincial People’s Congress, attended the meeting and announced the commencement of work.
Wang Xinwei, Deputy Secretary of the Liaoning Provincial Committee and Governor, delivered a speech; Xiong Maoping, Deputy Secretary of the Provincial Committee and Secretary of the Dalian Municipal Committee, gave an address. Provincial leaders including Wang Jian, Member of the Standing Committee of the Provincial Committee and Vice Governor; Jiang Youwei, Member of the Standing Committee of the Provincial Committee and Secretary-General; Yu Guo’an, Vice Director and Secretary-General of the Standing Committee of the Provincial People’s Congress; Wang Mingyu, Deputy Secretary of the Leading Party Group and Vice Chairman of the Provincial Committee of the Chinese People’s Political Consultative Conference (CPPCC); Gong Fuqing, Chairman of the Dalian Municipal Committee of the CPPCC; Feng Shouquan, Secretary-General of the Provincial Government; Zhao Ying, Deputy Secretary-General of the Provincial Committee; Qiu Baolin, Member of the Standing Committee of the Dalian Municipal Committee and Vice Mayor; and Zhao Dong, Vice Mayor, attended the meeting. Chen Shaowang, Deputy Secretary of the Dalian Municipal Committee and Mayor, presided over the meeting. Chen Jianhua, Chairman and President of Hengli Group, and Fan Hongwei, Vice Chairwoman, attended the meeting.
A project signing ceremony was held during the meeting. The Dalian Municipal Government, Dalian Changxing Island Economic & Technological Development Zone, and Hengli Group signed the “Cooperation Innovation Industrial Park Industrial Development Agreement” and the “Offshore Technology Industrial Park Industrial Development Agreement.” Building upon the Phase I and II projects, Hengli Heavy Industry commenced construction on the Cooperation Innovation and Offshore Technology Industrial Park. Upon full completion, the project is expected to achieve a cumulative annual output value of 150 billion yuan, establishing Dalian as the world’s largest single-site shipbuilding base with the most comprehensive supporting facilities.
The groundbreaking of the Hengli Heavy Industry Cooperation Innovation and Offshore Technology Industrial Park represents a strategic layout by Hengli Group, based in Liaoning, to expand into new sectors globally. It is both a milestone for Hengli Group’s advancement towards becoming a world-class shipbuilding enterprise and another significant achievement for Liaoning Province in scaling up and strengthening its shipbuilding and offshore equipment industry.
The Hengli Heavy Industry Cooperation Innovation and Offshore Technology Industrial Park is geographically adjacent to and industrially complementary with Hengli Heavy Industry’s Phase I “Ocean Factory” and Phase II “Future Factory,” providing both vertical extension and horizontal reinforcement. The industrial park covers an area of 12 square kilometers and will focus on international advanced levels, prioritizing the development of offshore engineering, shipbuilding, ship conversion, high-end offshore equipment and its supporting industries, marine materials, and marine component manufacturing and processing. Through the cultivation of new industrialization and advanced manufacturing clusters, it aims to build new strategic advantages for future development.
Specifically, the Hengli Heavy Industry Cooperation Innovation Industrial Park will focus on the R&D and manufacturing of marine composites, crankshafts, transmission devices, navigation systems, etc. The Offshore Technology Industrial Park will concentrate on new development tracks in offshore equipment, developing and producing high-end products such as offshore platforms, Floating Production Storage and Offloading (FPSO) vessels, and Floating Liquefied Natural Gas (FLNG) facilities. The industrial park will drive the development of supporting industries like precision casting, steel processing, and marine equipment. Currently, 14 supporting projects with a total investment of approximately 2 billion yuan have been settled, and an additional 10 supporting projects are expected to be settled by the end of the year, generating an output value of 4 billion yuan within the year.
In 2022, responding to the national call, Hengli Group established Hengli Heavy Industry Group, investing 2.11 billion yuan to acquire the assets of the former STX Dalian, which had been idle for ten years, with the goal of building a world-class high-end shipbuilding base. In January 2023, Hengli Heavy Industry’s Phase I “Ocean Factory” achieved full operation in just 150 days. The original dock was expanded into a super dock measuring 741 meters long, 135 meters wide, and 14.5 meters deep, capable of simultaneously building four 300,000 deadweight ton VLCCs, making it the largest of its kind globally.
In January of this year, Hengli Heavy Industry’s nearly 10-billion-yuan Phase II project—the “Future Factory”—achieved production within five months. The “Future Factory” boasts 17 ultra-large workshops with a total floor area of over 2 million square meters, focusing on high-value-added green ships and high-end offshore equipment manufacturing such as VLCCs, Very Large Gas Carriers (VLGCs), ultra-large container ships, FPSOs, offshore floating wind power units, and drilling platforms.
Wang Xiaohai, General Manager of Hengli Shipbuilding (Dalian) Co., Ltd., stated: “Since the beginning of this year, we (the Ocean Factory) have doubled the original STX production capacity and stabilized the processing volume at approximately 80,000 tons per month. The Phase II production capacity is rising rapidly and linearly each month and is expected to reach full capacity by the end of the year. The new Offshore Technology Industrial Park will have a highly synergistic and complementary effect with the Phase I and II shipbuilding assembly operations. Through the market expansion of high-end offshore projects, it will further enhance the overall core competitiveness of Hengli Heavy Industry in the market.”
Upon full production of all Hengli Heavy Industry series projects, the annual construction capacity will reach over 150 ultra-large ships and 180 marine engines, including G95 main engines and below, with full coverage of LNG, LPG, methanol, and ammonia dual-fuel options, making it the world’s largest single-site shipbuilding base with the most complete supporting facilities.
In the first half of this year, Hengli Heavy Industry became a wholly-owned subsidiary of the listed company Songfa Co., Ltd. Currently, Songfa Co., Ltd. is raising capital through the capital market to support Hengli Heavy Industry’s strategic development, planning to invest approximately 3.9 billion yuan in raised funds to build 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)”.
Among them, the total investment for the Hengli Shipbuilding (Dalian) Green High-End Equipment Manufacturing project is approximately 8 billion yuan, with plans to invest 3.5 billion yuan from raised funds. The total investment for the Hengli Heavy Industry International Ship R&D and Design Center (Phase I) project is about 740 million yuan, with plans to invest approximately 430 million yuan from raised funds.
To ensure the smooth implementation of the fundraising projects, Songfa Co., Ltd. used the raised funds to increase the capital of its wholly-owned subsidiary Hengli Heavy Industry by 3.9 billion yuan. Furthermore, through Hengli Heavy Industry, it used the raised funds to increase the capital of its wholly-owned subsidiary Hengli Shipbuilding (Dalian) by 3.5 billion yuan to implement the fundraising projects. The capital increase has been completed, with Hengli Heavy Industry’s registered capital changing from 3 billion yuan to 6.9 billion yuan, and Hengli Shipbuilding (Dalian)’s registered capital changing from 6.5 billion yuan to 10 billion yuan. Leveraging its capital operation advantages, Songfa Co., Ltd. is fully promoting Hengli Heavy Industry’s advancement towards becoming a globally top-tier intelligent green ship equipment manufacturer.
Over the past three years, from the early delivery of the first ship to the comprehensive development and high-quality delivery of various types of ships like container ships, bulk carriers, and tankers, and from the completion of the first engine to the full coverage of four types of dual-fuel engines and filling domestic gaps in engine models, the high-quality development achievements of Hengli Heavy Industry have been fully recognized by domestic and international shipowners and partners. To date, Hengli Heavy Industry has commenced construction on over 60 ships, with手持订单 (orders on hand) of approximately 170 ships, scheduled for production through 2029.
