The buyer of the latest order for six 114,000 deadweight ton product tankers secured by Hengli Heavy Industry has been revealed.
According to TradeWinds, Dubai-based bulk carrier and tanker owner Emarat Maritime placed the order for these six LR2 product tankers at Hengli Heavy Industry as part of its fleet expansion and renewal plan. The company had previously sought quotes from South Korean shipyards but ultimately chose Hengli Heavy Industry due to its ability to offer more favorable ship prices and delivery times.
Based on an announcement issued by Hengli Heavy Industry’s parent company, Songfa Ceramics, on the evening of November 17th, these six 114,000 DWT product tankers were ordered by an “internationally renowned shipowner” and are scheduled for successive deliveries starting in 2027. The total contract value is approximately $4-600 million (approximately RMB 2.843-4.265 billion).
For reference, data from Clarksons shows that the current newbuilding price for a 113,000-115,000 DWT LR2 tanker is about $75 million (approximately RMB 533 million), slightly lower than the $78 million price during the same period last year.
The 114,000 DWT /product oil tankers contracted in this order are mainstream international medium-sized /product oil carrier types. They feature core characteristics such as high loading capacity, ample tank volume, and green energy efficiency. The design of this ship type balances route adaptability and cargo loading flexibility, allowing it to efficiently interface with loading and unloading equipment at most global crude oil and product oil ports. It can meet the demands of regional trunk line transportation, refinery raw material supply, and transoceanic medium-to-long-haul transportation. It is a high-quality ship type that aligns with the latest international tanker design concepts and meets the current shipping market’s demand for efficient and low-carbon transportation.
This order marks Emarat Maritime’s first tanker order in nearly 20 years. It is understood that Emarat Maritime’s last tanker order was in 2006, when it placed an order at South Korea’s Hanjin Heavy Industries (now HJ Shipbuilding) for four Aframax crude oil tankers and two LR2 product tankers. These six vessels are also the entirety of the tankers currently operating in the company’s fleet.
Emarat Maritime was established in 1990 and is the shipping business division of Dubai’s Sharaf Group. Data from its official website shows that the company’s fleet operates 6 tankers and 19 bulk carriers, including 3 Panamax, 7 Ultramax, and 3 Supramax bulk carriers.
Hengli Heavy Industry stated that the signing of this order is of extraordinary significance for the company. On one hand, it will further consolidate Hengli’s leading position in the high-end tanker construction market and enhance the brand’s recognition and influence in the international market. On the other hand, it will also bring considerable economic benefits to Hengli Heavy Industry, promoting the company’s sustained development and growth in the shipbuilding sector.
In the future, Hengli Heavy Industry will continuously improve its technical capabilities and construction standards to provide customers with more high-quality and efficient ships, striving forward towards the goal of becoming a global leader in the ship manufacturing industry.
It is understood that Hengli Heavy Industry’s predecessor, STX Dalian, was once China’s largest foreign-invested shipyard, possessing the largest single shipyard site in Northern China. In 2022, responding to national calls, the Hengli Group established Hengli Heavy Industry Group, investing 2.11 billion RMB to successfully auction 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, the “Ocean Factory,” achieved full operation in just 150 days. In January of this year, the second-phase project—the “Future Factory”—achieved operational status within 5 months. In September of this year, the Hengli Heavy Industry Cooperation Innovation and Offshore Engineering Technology Industrial Park commenced construction in Dalian Changxing Island.
To date, Hengli Heavy Industry has commenced construction on over 60 ships and holds an orderbook of approximately 170 vessels, with production scheduled until 2029. Once all Hengli Heavy Industry series projects reach full production capacity, the company will be capable of building over 150 ultra-large ships annually and producing 180 marine engines, including G95 main engines and models below that specification. It will also achieve full coverage of LNG, LPG, methanol, and ammonia dual-fuel capabilities. It is set to become the world’s largest single-site shipbuilding base with the most comprehensive supporting facilities.
