Northeastern port city targets massive industrial scale as industry undergoes transformation
Amid the strong growth in China's shipbuilding industry, Dalian is navigating a course to becoming a global leader in green ship and marine equipment construction, repairs and retrofitting work.
The northeastern port city in Liaoning province is aiming to surpass an industrial scale of 100 billion yuan ($13.83 billion) in 2027.
In the Dalian Changxing Island Economic and Technological Development Zone, shipbuilder Hengli Heavy Industries has already solidified its manufacturing credentials in a relatively short period of time.
At the beginning of the year, two 82,000-deadweight-ton bulk carriers were delivered, marking the first time the company completed the delivery of two ships in a single day since it began full operations in 2023.
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The new shipbuilder achieved other breakthroughs last year, including its first ship delivery, its first engine delivery, and the launch of its first 306,000-metric-ton very large crude carrier (VLCC).
"Currently, our shipbuilding orders are scheduled until 2028," said Chen Jianhua, chairman of Hengli Group. Hengli Heavy Industries is designing and constructing high-value green ships of the highest standards and the fastest speeds, Chen added.
"After achieving full production, it is expected we will process 2.3 million tons of steel plates annually, build 150 large ships, and produce 180 engines, becoming the world's largest single shipyard," he said.
Global transformation
The global maritime industry is undergoing an industrial transformation toward a green and low-carbon future, accelerated by digital and intelligent technology, said Li Yanqing, secretary-general of the Beijing-based China Association of the National Shipbuilding Industry.
Li made the remarks in Dalian last month at a conference on the development of the city's marine equipment industry for high-tech shipbuilding. Development of the industry to achieve new heights requires government support, industry insiders' efforts and good international cooperation, he added.
The conference — held to promote the high-end, intelligent, and green development of the city's shipbuilding and marine equipment sector — attracted representatives of around 200 domestic and international enterprises from countries including South Korea, Japan, Finland, the United Kingdom, Germany, and Norway.
In 2024, China's shipbuilding completion volume, new order volume, and order backlog volume accounted for 55.7 percent, 74.1 percent, and 63.1 percent of the global market share, respectively, according to data from the Ministry of Industry and Information Technology.
The data showed continuous growth, with both the new order volume and order backlog volume the highest in China's shipbuilding history.
Green, intelligent drive
With over 78.5 percent of global green product orders and full coverage of mainstream ship types, the achievements of China's shipbuilding industry in the move to green and low-carbon production were outstanding in 2024.
China's shipbuilding industry is advancing toward mid- and high-end manufacturing through accelerated technological innovation, with new quality productive forces the engine driving the upgrade, said Professor Zhang Hongpeng from the Dalian Maritime University.
"China's shipbuilding industry is focusing on major areas of green and intelligent development, clearing a series of key bottlenecks, and promoting the leapfrog development of design and manufacturing capabilities for green and intelligent ship and marine equipment," he said.
In December 2023, the Ministry of Industry and Information Technology and several other departments issued an action plan for green development of the shipbuilding industry (2024-2030).The plan proposed establishing a basic system for green development in the shipbuilding industry by 2030.
In December 2024, a State-level opinion on accelerating the construction of a unified and open transportation market was issued. It proposed promoting the application of new energy and clean energy in ships and other transportation, and the continued implementation of intelligent shipping and other related pilot applications in the transportation field.
Zhang said more designs and equipment are now being independently developed. "Products are gradually covering all ship types in the market, and the research and development design, processing technology, and management levels are continuously improving," he said.
Think big
Dalian can lay claim to the world's largest floating production and storage offloading vessel, which can hold 2 million barrels of crude oil and serves as a multifunctional offshore oil and gas factory.
There are only two such vessels in the world. The first one was delivered two years ago and the second, currently under construction in Dalian, is set to be delivered in June.
As a subcontractor for the vessel, Dalian Shipbuilding Industry Co (DSIC), a subsidiary of China State Shipbuilding Corporation, is responsible for the design and construction of the hull. With more than 200 designers involved in the project, the design and construction period was shortened from over 30 months to 20 months.
"For the first vessel, we used integral construction, which takes a long time (working) from the stern to the bow using a segmented layered construction method, like building blocks," said Guo Hongsheng, chief designer of the project.
"For the second one, we used two large sections — the bow section and the stern section,"
These two large sections were also built using a segmented building block method in order to save construction time.
"This way, it will greatly save the construction period and reduce labor costs. At the same time, a large number of components, including pipelines, cables, etc, have been pre-installed during the segmented stage," Guo explained.
The vessel's pipelines number 36,000, with a total weight exceeding 4,000 tons. The painted area of the vessel covers nearly 900,000 square meters, and the construction volume is more than three times that of a large oil tanker.
Han Dongwang, general manager of DSIC, said the green and intelligent development of the industry will jointly drive its transformation, adding the prospects for the shipbuilding market and demand for supporting equipment are strong.
DSIC will dive into the high-end shipbuilding field, establish long-term cooperative relationships with suppliers, reduce costs, and enhance service quality, he said.
China's shipbuilders need to unite the world's best suppliers and service providers to jointly build a global ecosystem for the sustainable development of the shipbuilding industry, said Li Yanqing, in an interview with China Ship News in early February.
In addition to predicting market changes and promoting technological innovation, shipbuilders need to effectively control costs, ensure production safety, and deliver high-quality products, he said.
China's shipbuilding industry has been developing for more than 40 years in the international market, and its products have gained the trust of shipowners worldwide, he added.
Thirty-four shipbuilding and marine engineering projects were signed at the Dalian conference, covering areas such as green and intelligent upgrades, raw materials, ship and marine engineering equipment, marine intelligent manufacturing, and construction of industrial parks.
One representative of a foreign company that signed a contract expressed amazement at the efficiency and quality of cooperation with Chinese companies.
He said his company decided to invest in a factory in Dalian after visiting the site, and also after being inspired by the vitality of the shipbuilding industry in the city.
Thriving by the sea
Liaoning province has historically been an important base for China's shipbuilding industry. The country's first 10,000-ton ship, first drilling platform, and first aircraft carrier were all produced in Dalian.
After more than a century of development, the shipbuilding and marine equipment industry in Dalian has become a national leader in terms of industrial strength, research and development and industrial cooperation capabilities.
Major shipyards in Dalian are already operating at full capacity after a strong start to the year.
DSIC recently announced the signing of a contract with NBP, a wholly-owned subsidiary of Japan's NYK Line, for the construction of up to four 33,000-deadweight-ton deck transport vessels.
The vessels, slated for delivery in 2027, will be designed for transporting oversized modular equipment, and have a wide deck and high-load capacity to efficiently serve offshore wind, petrochemical modules, and other mega-cargo logistics, according to Xinde Marine News.
"This order underscores international trust in China's shipbuilding prowess and opens new avenues for DSIC in Japan's premium vessel market. We're committed to delivering excellence with precision," He Xu, DSIC deputy general manager, said at the signing ceremony, Xinde reported.
Toshiro Hasegawa, NBP's module transport division general manager, said: "DSIC's engineering strength, proven track record, and dedication made them the ideal partner. These vessels will elevate our competitiveness and advance sustainable global logistics."
Modernization drive
In recent years, Dalian has promoted the modernization of the city's growth through coordinated development of shipbuilding and marine equipment.
In 2024, the value of ship exports from Dalian Port reached 18.79 billion yuan, an increase of 28.3 percent year-on-year, Dalian Customs data shows.
"Dalian was born by the sea and thrives because of the sea. The shipbuilding and marine equipment industry has grown together with the city," said Xiong Maoping, Party chief of Dalian.
The city has formed a complete industrial system integrating shipbuilding with repairs, support, technical research and testing, he said.
Construction of a world-class high-tech shipbuilding and high-end marine equipment manufacturing base can also be leveraged to promote the transformation and upgrading of traditional industries and to cultivate and development of strategic emerging industries, Xiong said.
Dalian will actively adapt to the trend of green development in the shipbuilding industry, layout large-scale ocean ships and deep-sea equipment industrial chains according to local conditions, and enhance the design and construction capabilities of high-value-added ship types and equipment, he said.
In 2024, Dalian's shipbuilding and marine equipment industry achieved an annual output value exceeding 60 billion yuan for the first time, said Qiu Baolin, deputy mayor of the city.
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Breakthroughs were made in the research and development of new ships such as new high-speed passenger and roll-on-roll-off ships, he added.
A number of firsts, both domestically and internationally, were achieved. The world's first LNG dual-fuel ultra-large crude oil ship and methanol dual-fuel low-speed diesel engine were both successfully delivered.
At the beginning of this year, the city's three-year action plan for the shipbuilding and marine industry was formulated. A total of 18 policies were proposed, with four regions to promote specific support measures to boost the industry's development.
The Supporting Policies for the High-Quality Development of Dalian's Shipbuilding and Marine Equipment Industry was released at the February conference.
"In 2025, Dalian is expected to deliver 84 ships, with shipbuilding completions reaching 8.8 million deadweight tons, and the output value is expected to grow by over 20 percent," said Qiu.
"By 2030, we aim to build Dalian into an international first-class shipbuilding and marine equipment industry base," he said.
