Hengli Heavy Industry, a rapidly expanding Chinese shipbuilder, has announced plans to hire 30,000 workers to support the launch of its newly constructed shipyard in Dalian.
The facility, known as the “Future Factory,” was completed on Changxing Island in an impressive 153 days and spans over 2 million square meters. It consists of 17 large workshops equipped with advanced manufacturing technology to enable high-efficiency production. When fully operational, the shipyard will employ approximately 50,000 people and will focus on producing high-value-added maritime products such as ultra-large crude oil tankers, ultra-large container ships, ultra-large gas carriers, offshore drilling rigs, and engines compatible with alternative fuels, aligning with global trends toward decarbonization in shipping.
Hengli’s rapid expansion can be traced back to its acquisition of STX (Dalian)’s dormant assets in July 2022 for RMB 2.1 billion ($288 million).
The strategic move allowed the company to take over facilities once built by South Korea’s STX Group, which was previously the fourth-largest shipbuilder globally. STX invested $3 billion to establish the Dalian shipyard in 2006, but the facility remained unused for nearly a decade following financial difficulties and restructuring.
Hengli has revitalized and renamed the shipyard, officially reopening it in January 2023, marking a new chapter for the site.
The company has achieved notable success in a short time. October 2024, Hengli had secured 140 newbuild orders worth approximately $10.8 billion, covering bulk carriers, very large crude carriers (VLCCs), ultra-large ore carriers, and container ships, with scheduled deliveries extending through 2028.
The orders highlight Hengli’s growing reputation in the global shipbuilding market, particularly in constructing large-scale and technologically advanced vessels.
However, the company’s aggressive expansion has not been without challenges. Recently, Hengli dismissed deputy general manager Zhang Tao, who was responsible for ship sales and marketing. Hengli founder Chen Jianhua stepped in to manage Zhang’s responsibilities temporarily to ensure continuity during a critical phase of expansion. Industry speculation suggests Zhang’s dismissal might be linked to pricing issues, particularly low rates for container ship orders placed by Mediterranean Shipping Company (MSC). The pricing strategies, while securing large contracts, may have raised concerns internally regarding profitability.
Despite these internal disruptions, Hengli continues to position itself as a formidable player in the global shipbuilding industry. The company’s focus on innovation and high-value manufacturing, coupled with its ability to rapidly execute large-scale projects, signals its ambition to compete with leading global shipbuilders such as Hyundai Heavy Industries, Samsung Heavy Industries, and China State Shipbuilding Corporation. Hengli’s emphasis on alternative fuel technologies also aligns with global maritime regulations and growing demand for greener shipping solutions, potentially giving the company an edge in the increasingly competitive shipbuilding market.
