The tides are turning for the once-bankrupt shipyard in Rizhao, Shandong Province, as a new chapter unfolds under the auspices of Shandong Port Group. Recent announcements reveal that Shandong Port’s subsidiary, Shandong Port Equipment Group Co., Ltd. (hereinafter referred to as "Shandong Port Equipment Group") is initiating the revitalization of the former Shandong Huahai Shipyard with a substantial investment and ambitious plans.
The new marine equipment manufacturing project, located on the original Huahai Shipyard site, encompasses a 402.9-acre area. With a planned construction period spanning 2025 to 2026, the project’s total investment is projected at approximately 989 million RMB (about $135 million USD). The site is now being repurposed as part of a broader initiative to develop the Shandong Port High-End Marine Equipment Industrial Park, which aims to transform the area into a hub of advanced shipbuilding and repair capabilities.
Established in 2007, Shandong Huahai Shipyard was once the largest shipyard in Rizhao, boasting a capacity of building ships up to 10,000 tons and annual shipbuilding potential of 500,000 tons. Despite initial success, the shipyard struggled to weather the downturn in the global shipbuilding market after 2009. By 2015, mounting debts of 3 billion RMB ($411 million USD) forced the shipyard into bankruptcy, and its assets were auctioned off.
Fast forward to November 2023, and the site has found new life under Shandong Marine Equipment Co., Ltd. The facility, now spanning over 1,000 acres, is designed to produce 10 ships of up to 50,000 tons annually, along with offshore engineering modules. The project is expected to generate an annual output of 3 billion RMB ($411 million USD).
Building a High-End Marine Equipment Industrial Park
The larger industrial park, with an investment of 5 billion RMB ($685 million USD) and a planned area of 4,000 acres, will include cutting-edge facilities like digital assembly centers, curved surface machining centers, and a 10-ton floating dock for ship repair. Once operational, it is expected to support annual shipbuilding and repair capacities of eight 50,000-ton ships and fifty 100,000-ton ships, respectively, generating an estimated annual output of 2.04 billion RMB ($280 million USD).
The project has already achieved key milestones, including securing orders for two palm oil carriers for Indonesia and four multipurpose vessels for Iran, with contracts worth $58 million USD. Local government leaders, including Rizhao’s mayor, have expressed strong support, encouraging the team to capitalize on the growing demand in the shipbuilding market to bring the project to full capacity as quickly as possible.
by Xinde Marine News Chen Yang
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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