China Merchants has finalized the acquisition of Qingdao Yangfan Shipbuilding. This acquisition expands China Merchants’ shipyard portfolio to a total of seven facilities and significantly enhances its capacity, reports Llyod’s List.
Acquisition Finalized
China Merchants Industry Holdings (CMI), a significant entity in the shipbuilding industry under the state-owned China Merchants Group (CMG), has finalized its acquisition of Qingdao Yangfan Shipbuilding Co., Ltd. This acquisition represents a substantial move in CMI’s strategic expansion efforts.
The acquisition process followed several months of negotiations with the local government, which commenced in late 2024. A cooperation agreement was signed in February 2025 during a conference in Shandong attended by CMG chairman Miao Jianmin. An official announcement regarding the completion of the deal is anticipated in May.
Visual evidence from the Qingdao Yangfan shipyard site indicates that the name on the gantry cranes has already been changed from “Qingdao Shipbuilding” to “CMI Qingdao Shipyard,” corroborating market speculation about the acquisition. A source with close ties to Qingdao Yangfan confirmed to Lloyd’s List that the takeover has been completed.
This acquisition is viewed as a strategic maneuver by CMI to broaden its shipbuilding capabilities. Zhang Yao, a manager at C&D Shipbuilding, a Chinese ship financial leasing firm, characterized the deal as a “natural match,” enabling CMI to handle orders for container ships and large bulk carriers, which were previously outside its primary scope.
With the integration of Qingdao Yangfan, CMI now has control over seven shipyards. The other six specialize in the construction of vehicle carriers, ro-ro ships, chemical tankers, and midsize bulk carriers. The Qingdao yard is expected to benefit significantly from CMI’s fully integrated supply chain.
Reshaping Global Shipbuilding
According to company data, Qingdao Yangfan’s order book includes eight 210,000 dwt bulk carriers and nineteen 82,000 dwt bulk carriers.
Two of the larger vessels were ordered by China Merchants Energy Shipping in June 2024 for Yuan 1.1 billion ($144 million), with delivery scheduled for the second half of 2027.
Founded in 1949, Qingdao Yangfan faced financial difficulties and filed for bankruptcy in 2016. A court-led restructuring in 2018 resulted in the transfer of ownership to Qingdao Huatong. Remarkably, by the end of 2019, the yard completed its restructuring with 100% repayment to all creditors — a unique achievement in China’s shipbuilding sector.
This acquisition occurs against a backdrop of escalating trade tensions between the US and China. The US proposal to impose port fees on Chinese-built ships has the potential to reshape global shipbuilding dynamics and poses a threat to shipyards in China, including the newly acquired CMI Qingdao Shipyard.
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Source: Lloyd’s List
