CSSC Group to add 2.4M dwt in capacity with US$700M in investments

Portfolio diversification

According to shipbuilding sources, the CSSC Group is also set to enhance its diversification strategy by pursuing higher-value tonnage, such as LNG and LPG carriers, and offshore units. Additionally, the group aims to secure more orders for dual-fuel engines in response to the growing momentum for decarbonisation.

This year’s major newbuilding deals demonstrate the group is already progressing along this path. Last April, QatarEnergy signed a contract with CSSC’s Hudong to construct 18 LNG carriers, each with a capacity of 270,000 m³.

More recently, Adnoc Logistics & Services, through its joint venture with Wanhua Chemical Group, AW Shipping, signed a substantial newbuilding deal with CSSC’s Jiangnan Shipyard. The agreement includes nine very large ethane carriers with a capacity of 99,000 m³ each, and two 93,000-m³ very large ammonia carriers. The total value of the contract is estimated at US$1.9Bn.

Huge expansion investments in China

The CSSC Group’s expansion strategy aligns with the new era of growth in the Chinese shipbuilding industry, following the recent boom in newbuildings. Several large shipyards have recently announced significant investment programmes to increase construction and repair capacity. Meanwhile, shipyards that had been dormant during the previous ‘bad’ years for the market are being revived.

The privately owned Yangzijiang Shipbuilding Group recently revealed a multi-million dollar project for a new shipbuilding base in Jingjiang. The Yangzi Hongyuan Green High-tech Clean Energy Shipbuilding Base Project will utilise approximately 1,320 m of the Yangtze River coastline and cover an area of around 1,300 acres. Secretary of the Group, Zhang Changping, noted the project aims to produce high-tech and high-value-added vessels, thereby "breaking the monopoly of Japan and South Korea in that field." Yangzijiang’s primary focus will be on entering the large-scale LNG carrier ship construction market. Chinese media disclosed that the base is expected to become fully operational by the end of 2026.

Another private shipyard, Hengli Heavy Industry, which restarted operations in the past two years, is planning investments of US$1.3Bn to develop an additional capacity of 1.8M dwt annually. The group will now target large tankers, LPG carriers, container ships, FPSOs and drilling platforms.

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