China's Hengli Shipbuilding bags third government subsidy in two months, totalling US$100M

Guangdong Songfa Ceramics Co, the parent company of Hengli Shipbuilding, disclosed via the Shanghai Stock Exchange on 12 August that its subsidiary had received government asset-related subsidies totalling RMB330M (approximately US$46M). The company stated the subsidy is classified as a government grant related to assets and will be recognised as deferred income.

This follows an earlier announcement on 19 July that Hengli Shipbuilding had received government infrastructure cost-sharing funds totalling RMB260M (US$36M). On 18 June, in a similar disclosure, the yard confirmed receipt of RMB120M (US$17M) in asset-related subsidies.

Large-scale growth

Hengli Shipbuilding has posted exceptional growth over the past two years. Established by Hengli Group following its acquisition of the former STX Dalian facility, the private yard had amassed an orderbook of 19.9M dwt by the end of 2024, ranking it as the world’s sixth-largest shipbuilding group, according to BRS Shipbrokers.

Earlier this year, Hengli launched its Factory of the Future initiative, focusing on high-value-added vessel types such as VLCCs, VLGCs and ultra-large container ships, among others. Chinese media have reported the large-scale adoption of advanced technologies, including automated welding robots and dynamic automated steel plate printing.

In recent months, the shipbuilder has secured a series of high-profile contracts with major global shipping companies across the bulk carrier tanker, and container vessel markets. Clients include Mediterranean Shipping Co, Eastern Pacific Shipping and Shandong Ocean Shipping, all of which have placed significant orders with Hengli.