Hengli Shipbuilding (Dalian) Co., Ltd., a subsidiary of Guangdong Songfa Ceramics Co., Ltd., has finalized contracts to construct four very large crude carriers (VLCCs). The deal, valued between USD 400 million and USD 600 million, marks a significant expansion for the shipbuilder and demonstrates the company’s growing role in the global energy transport sector.
Details of the VLCC Deal
Each VLCC will have a carrying capacity of 306,000 deadweight tons, highlighting the scale and ambition of the agreement. While the buyer has not been publicly identified, the company described the counterparty as a “well-known European shipowner.” Delivery of the vessels is scheduled between the second half of 2026 and the first half of 2027, with disputes to be resolved under London Maritime Arbitrators Association rules.
The company clarified that the contracts are routine operational agreements, not requiring shareholder or board approval under Shanghai Stock Exchange rules. Payments will be settled in U.S. dollars, but potential challenges remain, including market volatility, raw material prices, and currency fluctuations.
Strategic Shifts and Industry Impact
This contract follows earlier industry reports suggesting Hengli Heavy Industry had secured a “2 firm + 2 optional” VLCC arrangement with a European client. The development reflects Hengli’s strengthened position in the global shipbuilding industry following its 2025 restructuring.
Guangdong Songfa Ceramics, originally engaged in the ceramics sector, completed an asset restructuring in 2025 to acquire Hengli Heavy Industry Group, marking a strategic shift toward shipbuilding and high-end equipment manufacturing. By leveraging Hengli Shipbuilding’s capacity and expertise, the company is now poised to become a more competitive player in the maritime industry.
The four-vessel VLCC contract represents a milestone for Hengli Shipbuilding, signaling its entry into large-scale international shipbuilding agreements. While execution risks exist due to external market conditions, the deal underscores Hengli’s transformation into a high-end industrial manufacturer and highlights China’s expanding influence in the global shipping and energy sectors.
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Source: PORT NEWS
