Yangzijiang Shipyard Soars Amid Shipbuilding Boom
Yangzijiang Shipbuilding, China’s largest private-sector shipbuilder, is experiencing an unprecedented surge in demand, propelling the company to new heights. With a record order backlog exceeding $16 billion, Yangzijiang is capitalizing on the global appetite for new tonnage. To accommodate this burgeoning demand, the shipbuilder has acquired over 200 acres of additional land adjacent to its current facilities, expanding its waterfront by nearly a mile.
The spike in orders can be attributed to the global shipping industry’s shift towards Chinese shipyards, as Korean and Japanese yards reach capacity. Currently, more than 60 percent of all merchant vessel orders this year have been placed with Chinese yards. Yangzijiang has not only increased its volume but also diversified its portfolio by securing contracts for more sophisticated vessels.
In a significant development, Japanese shipowner Nissen Kaiun has contracted Yangzijiang’s Yangzi Mitsui joint venture division to construct four very large ammonia carriers (VLACs). This marks the first such order at any private yard in China. The VLACs, which will be dual-fuel powered with LPG, are scheduled for delivery by 2029. Historically, the niche market for VLACs has been dominated by South Korea’s leading shipyards. This contract signifies Yangzijiang’s entry into a high-value-added segment, complementing its recent ventures into LNG and very large ethane carrier (VLEC) markets.
Yangzijiang Shipbuilding
Record Order Backlog and Strategic Expansion Drive Growth
To support its expanding order book, Yangzijiang is making significant investments in infrastructure. The company is channeling over $400 million into a new expansion plan, which includes acquiring adjacent land and constructing a 300,000-tonne drydock. This expansion is expected to increase the yard’s annual capacity by 800,000 deadweight tonnes (dwt). Local party secretary Zhang Changping highlighted the strategic importance of this move, stating that it aims to “break the monopoly of Japan and South Korea in the field of high-value-added ships, and achieve industrial self-reliance.”
The new facility will feature advanced, digitalized production capabilities, underpinned by a 5G industrial data network, showcasing Yangzijiang’s commitment to integrating cutting-edge technology into its operations. This expansion is not an isolated case; several Chinese shipyards are ramping up their capacities. New Times Shipbuilding is adding a new graving dock, and previously shuttered yards like Hengli Heavy Industries, Weihai Samjin, and SPS Shipyard have retooled and reopened to meet the rising demand.
According to shipbroker BRS, Chinese shipyards’ order books are largely full through 2027, with some extending into 2029. This robust pipeline underscores the sustained demand for new ships and the strategic positioning of Chinese yards to capture a significant share of the market.
Yangzijiang’s remarkable growth trajectory is emblematic of broader trends in the global shipbuilding industry. As the company continues to innovate and expand, it is well-positioned to maintain its leadership role and drive the evolution of shipbuilding technology and capacity in China.
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