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Dalian to Focus on High-End Vessels

Dalian
File photo: Dalian Shipbuilding

Published Jan 17, 2017 12:18 PM by The Maritime Executive

Dalian Shipbuilding Industry, one of China’s largest shipyards, is expanding its focus on high-end vessels such as very large crude and bulk carriers as a way of dealing with the global shipbuilding slump.

The news comes after Hong Kong-based China VLCC is said to have approached Dalian and another Chinese yard this month about the construction of four VLCCs. 

Dalian delivered a VLCC to COSCO Shipping Energy Transportation in November, and has a number of other tankers under construction including six VLCCs for China Merchant Energy Shipping.

Dalian’s services include research and development, construction, repair and scraping, and it has experience in the commercial, naval and offshore sectors. China Daily reports the yard has built over 800 naval ships. The company also has an orderbook of nine jack-up rigs and is involved in the design of drill ships and offshore equipment development.  

China recently unveiled its latest Five-Year Plan from 2016 to 2020 citing areas of improvement needed in shipbuilding. These include raising its technological edge, streamlining capacity, incorporating intelligent manufacturing, improving overall quality and branding, promoting military-commercial shipbuilding collaboration and extending its global reach through investments and partnerships.

In November, China set new requirements for its "White List" of shipyards that are likely to reduce the number of the state-approved yards to 59, down from 71 – a continuation of the trend towards consolidation in the sector.

Since then, seven Chinese shipyards have formed an alliance to share rig building resources. The China Offshore (Deepsea) Industry Alliance, was established on December 28, 2016, and includes Dalian Shipbuilding Industry Offshore, Yantai CIMC Raffles, Shanghai Zhenhua Heavy Industries Company (ZPMC), Cosco (Qidong) Shipyard, Shanghai Waigaoqiao Shipbuilding (SWS), China Merchants Heavy Industry (Shenzhen) and Cosco Shipyard.

The yards are all on the Chinese government’s November 2015 White List.