Hudong-Zhonghua Launches Smart Shipyard to Boost LNG Carrier Output

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  • Hudong-Zhonghua’s new 431.8-hectare Changxing Island yard, backed by an RMB 18 billion investment, will lift annual LNG carrier output from six to over ten vessels.
  • The 214.6-hectare Phase One (RMB 8 billion) features hull assembly, curved-segment welding, coating centers, indoor/outdoor docks, an R&D hub, outfitting wharfs, and module yards.
  • Equipped with 5G, IoT, robotic welding, big-data analytics, and palletized management, the shipyard ranks among the world’s most advanced digital facilities.

On Changxing Island in Shanghai, Hudong-Zhonghua Shipbuilding—part of China State Shipbuilding Corporation—has officially inaugurated its new 431.8-hectare shipyard following an RMB 18 billion (US$2.5 billion) investment. Once fully operational, this facility will increase the company’s LNG carrier production capacity from six to over ten vessels annually, reinforcing its leading role in the global maritime sector, according to Marine Insight.

Phase One Infrastructure and Capabilities

The first phase, covering 214.6 hectares with an RMB 8 billion outlay, boasts critical infrastructure: a hull joint workshop, curved-section assembly and welding halls, coating centers, both indoor and open-air docks, along with outfitting wharfs and module yards. A new R&D and design building is also in place, providing centralized research, design, and project coordination capabilities.

Digital and Intelligent Production Systems

Leveraging advanced manufacturing techniques—such as rationalized ship-section division, palletized materials management, and integrated outfitting/coating processes—the yard’s intelligent workshop employs 5G connectivity, IoT sensors, robotic welding, and big-data platforms. These technologies position it among the world’s most digitally sophisticated shipyards.

Project Development Timeline

Phase Two commenced in January 2021. Between September 2021 and October 2023, the No. 2 Dockyard was completed, with large-hull equipment installed by late 2022. The curved-section welding facility opened in February 2023 and was expanded by December 2024. By early 2025, the first LNG carrier was laid down, coinciding with the relocation of Hudong-Zhonghua’s technology center to the new R&D complex.

Strategic Order Backlog and Market Standing

Industry data indicate the yard holds orders totaling nearly 11 million deadweight tons, ranking it second globally in compensated gross tonnage. Its backlog includes around 60 LNG carriers—over 20% of worldwide orders—slated for delivery into the post-2030 period. According to S&P Global, although only 7% of the current LNG fleet was built in China, Chinese shipyards now secure 28% of new LNG carrier contracts.

Geopolitical and Regulatory Headwinds

The shipyard’s expansion unfolds amid renewed U.S. scrutiny of Chinese-built vessels. Legislation such as the SHIPS Act, reintroduced by U.S. lawmakers, would mandate a growing share of U.S. energy exports to sail on American-built and -operated ships (starting at 1% in 2028). Analysts warn such measures—and potential new port fees or restrictions—could complicate China’s shipbuilding exports, particularly in the LNG segment.