Hudong-Zhonghua Unveils Massive Smart Shipyard To Boost LNG Carrier Production

Shanghai-based Hudong-Zhonghua Shipbuilding, a key player in China’s maritime sector, has officially launched its new state-of-the-art shipyard on Changxing Island.

Spanning 431.8 hectares with a total investment of RMB 18 billion (around US$2.5 billion), the facility is designed to significantly increase production capacity. Once fully operational, it is expected to raise the company’s LNG carrier output from six to over ten vessels per year.

The first phase of the yard, covering 214.6 hectares and funded by an RMB 8 billion (US$1.11 billion) investment, includes essential infrastructure such as a hull joint workshop, curved segment assembly and welding facilities, coating centers, and both indoor and open-air docks. It also hosts a new R&D and design building, along with outfitting wharfs and module centers.

The plant incorporates advanced production methods like rationalised ship section division, palletized management, and integrated outfitting and coating. It also features a cutting-edge intelligent workshop powered by 5G, IoT, robot welding, and big data systems, positioning it among the world’s most advanced digital shipyards.

The project started its second phase in January 2021, finishing the No. 2 Dockyard between September 2021 and October 2023, and installing large hull equipment in late 2022.

The curved section welding workshop began in February 2023, with its extension finalised in December 2024. By early 2025, the first LNG carrier was laid down at the site, and the company’s technology center had moved into the new R&D building.

Hudong-Zhonghua, a subsidiary of China State Shipbuilding Corporation (CSSC), is already known for delivering China’s first LNG carrier 17 years ago.

Industry reports suggest the shipyard holds an order backlog of nearly 11 million deadweight tons, ranking it second globally in terms of compensated gross tonnage (cgt). This includes about 60 LNG carriers, accounting for over 20% of global orders, with deliveries scheduled into the post-2030 period.

According to S&P Global, while only 7% of the global LNG fleet was originally built in China, Chinese yards now command 28% of all new LNG carrier orders.

However, this expansion comes amid growing international scrutiny. U.S. lawmakers have reintroduced the SHIPS Act, which proposes mandatory use of U.S.-built and U.S.-operated vessels for certain energy exports, starting with a 1% quota in 2028 and expanding in 2029.

Analysts from Chengtong Securities, including Fan Yunhao, stated that if the legislation is enforced, it could pressure global shipowners and affect contracts with Chinese shipbuilders. He said that new port fees and restrictions could complicate China’s shipbuilding export, especially in the LNG segment.