Image credit: Yangzijiang Shipbuilding.
China’s largest private shipbuilder, Yangzijiang, is enjoying a banner year. The company’s order backlog has surged to a record-breaking $16 billion, fueled by skyrocketing global demand for ships. To accommodate this massive workload, Yangzijiang has purchased an additional 200 acres of land, including nearly a mile of waterfront, adjacent to its shipyard.
With Korean and Japanese shipyards operating at full capacity, shipowners are increasingly turning to China for new vessels. Over 60% of all merchant ship orders placed this year have gone to Chinese shipyards, benefiting Yangzijiang significantly. The shipyard is also expanding its offerings beyond bulk carriers and tankers to include more complex vessels.
A prime example is the recent order from Japanese shipping company Nissen Kaiun for four very large ammonia carriers (VLACs). This marks a significant milestone as the first VLAC order for a private Chinese shipyard. Traditionally dominated by South Korea’s top shipbuilders, the VLAC market is becoming more competitive. Yangzijiang’s entry into this high-value segment follows its earlier successes with LNG and ethane carriers.
To support its growth, Yangzijiang is investing over $400 million in a new production facility, including a massive 300,000-tonne drydock. This expansion will increase annual capacity by 800,000 deadweight tons and challenge the dominance of Japan and South Korea in the high-value ship market, according to local officials. The shipyard plans to incorporate advanced technology and a 5G network into its new operations.
While Yangzijiang’s expansion is noteworthy, it’s part of a broader industry trend. Numerous Chinese shipyards are growing and modernizing their facilities. The overall shipbuilding market remains robust, with orderbooks filled through 2027 and beyond.