- Chinese yards are expanding capacity aggressively, adding 300,000-DWT class docks and smart shipyards
- China’s global ship order share rose to 69.8% last year, while Korea operates just 12 shipyards
- Industry warns that oversupply risks could emerge after 2028 if expansion continues.
Chinese shipbuilders are rapidly expanding production facilities as the global shipbuilding market enters a boom phase. Zhejiang Xinxinzhou Shipbuilding has started construction of a 1 billion yuan smart shipyard, scheduled for completion by June 2027, which will add 300,000 DWT of capacity. Several other Chinese yards have also launched or approved new large dry docks over the past year.
Smart Shipyards Drive Scale Advantage
Most new Chinese shipyards are being developed as smart factories, using 5G, IoT, robotic welding, and big data systems. One recently completed project involved an investment of 18 billion yuan, highlighting the scale at which Chinese builders are modernising operations to improve efficiency and output.
China Widens Gap with Korea
According to industry data, the number of shipyards in China increased from 206 in 2023 to 217 recently, compared with 12 shipyards in South Korea. China’s share of global ship orders has climbed steadily, rising from 55.9% in 2022 to 63.8% in 2023 and reaching 69.8% the following year, further widening the gap between the two countries.
Oversupply Concerns Beyond 2027
While demand and supply are expected to remain balanced until 2027, analysts warn that continued large-scale expansion could trigger oversupply after 2028. In contrast, Korean shipbuilders are avoiding aggressive capacity growth, instead spreading risk through joint ventures and overseas outsourcing, a strategy aimed at limiting exposure if the market turns.
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Source – Chosun Biz
