Shipbroker Simpson Spence Young (SSY) has released a new report indicating that Hengli Heavy Industries, a rising star in China’s shipbuilding industry, is expected to deliver at least 160 new vessels by 2028. This privately owned Chinese shipbuilder has risen rapidly in just four years since its establishment, becoming one of the most remarkable success stories in the history of global shipbuilding.
In July 2022, Hengli Heavy Industries acquired the assets of STX Dalian Shipbuilding for 2.11 billion yuan. By June 2026, the shipbuilder had accumulated at least 395 confirmed orders—equivalent to 12.2 million compensated gross tonnage(CGT)—within just four years, successfully ranking among the world’s largest private shipbuilders. According to Hengli Heavy Industries’ publicly released site map, vast arrays of giant gantry cranes are in continuous operation, representing a scale of production capacity rarely seen anywhere in the world.
In 2024, Hengli Heavy Industries began delivering its first commercial vessel orders, with the lead vessel—a 61,000 DWT bulk carrier—delivered more than 40 days ahead of the original schedule. Hengli Heavy Industries’ true capacity expansion will begin in the second half of 2026, with expected deliveries surging from 17 vessels in 2025 to approximately 80 in 2026 (with about 20 already delivered this year), approximately 120 in 2027, and at least 160 in 2028.
Beyond the rapidly growing order backlog, what is even more surprising is the level of acceptance this up-and-coming shipyard has received from global shipowners. Currently, Hengli Heavy Industries’ client base includes Greek shipowners, publicly listed shipping companies, major liner operators, and Chinese state-owned shipping groups.
SSY believes that global shipowners’ willingness to choose Hengli Heavy Industries for shipbuilding stems from the company’s robust industrial backing. Hengli Heavy Industries is part of the Hengli Group, China’s third-largest private industrial conglomerate, which reportedly accounts for approximately one-third of Dalian’s GDP and enjoys strong local resources and government support. From 2025 to 2026, Hengli Heavy Industry is expected to receive at least 1 billion yuan in government subsidies.
Furthermore, Hengli Heavy Industries’ rapid rise reflects the current shortage of capacity in the global new shipbuilding market. As delivery schedules at major shipyards in China, South Korea, and Japan are already booked at least three to four years in advance, Hengli Heavy Industries has won favor with shipowners and successfully secured orders by offering shorter delivery times.
Shipbroker Hartland Shipping notes that the boom in China’s shipbuilding capacity expansion shows no signs of slowing down: “Almost every week, a Chinese shipyard opens or restarts idle capacity. The new capacity is not only being used to build small coastal vessels but is also directly entering the market for major vessel types such as Very Large Crude Carriers (VLCCs), large bulk carriers, and feeder container ships.”
For Hengli Heavy Industries, the shipbuilder’s three major shipyard capacity expansion projects, totaling approximately 13.5 billion yuan, have made substantial progress: The China Securities Regulatory Commission (CSRC) has approved the registration application submitted by Songfa Co., Ltd. (the listed entity of Hengli Heavy Industries) for a private placement of shares. Songfa Co., Ltd. plans to issue A-shares to no more than 35 specific investors, raising a total of no more than 7 billion yuan to fund the Integrated Green and Intelligent High-End Shipbuilding Project, the Hengli Shipbuilding Green Shipbuilding Curve Group Supporting Upgrade Project, and the Supporting Project for Berths 3–6 of the Green High-End Shipbuilding Project.
Once the three major fundraising projects are successfully implemented, Hengli Heavy Industries will have the capacity to simultaneously build 10 vessels under 200,000 deadweight tons and 12 vessels over 200,000 deadweight tons, for a total of 22 berths. At that point, it will become the world’s largest shipbuilding base.
According to data from the ship valuation agency VesselsValue, Hengli Heavy Industries currently holds the largest order book among Chinese shipbuilders. The company secured orders for 115 new vessels in 2025, and this momentum has carried over into 2026. As of early June, Hengli Heavy Industries had secured orders for over 150 new vessels this year, far exceeding its total order volume for the entire year of 2025.
Hengli Heavy Industries’ current order book is dominated by oil tankers, which account for approximately 50% of the total, while the company is actively pursuing diversification in vessel types. In its early years, Hengli Heavy Industries primarily built Kamsarmax bulk carriers, but has since expanded its capabilities to include Capesize bulk carriers, VLCCs, Suezmax oil tankers, LR2-class oil tankers, and ultra-large container ships with a capacity exceeding 20,000 TEU.