Recently, Shandong Port Group’s Shangang (Shandong) Offshore Equipment Co., Ltd. issued a tender notice to bid for the engineering design of the offshore equipment manufacturing base project.
The announcement shows that the project site is located in the former Shandong Huahai Shipbuilding Co. and the surrounding land. The construction site area of 402.9 mu, the construction period from 2025 to 2026 and the total investment of the project is planned to be about RMB 989 million.
Public information shows that Shandong Huahai Shipbuilding was established in 2007. It is a joint venture company invested and established on the original site of Rizhao Shipyard. It was once the largest shipyard in Rizhao City, Shandong Province. The shipyard covers an area of 436 mu, with a total investment of RMB 500 million. It has the capacity to repair and build various types of ships below 100,000 tons, and an annual shipbuilding capacity of 500,000 tons.
Huahai Shipbuilding started production in 2009, when the ship market had entered a downward spiral. Despite having built a number of 37,000 DWT bulk carriers, ASD Tugs, the continued recession in the industry has resulted in Huahai Shipbuilding being unable to maintain its operations. Since the second half of 2014, some of Huahai Shipbuilding’s assets, including ship steel, ship equipment and even ships under construction, had to be auctioned to repay debts.
In October 2015, the Rizhao Intermediate People’s Court ruled that Huahai Shipbuilding was bankrupt. According to the announcement at the time, Huahai Shipbuilding had RMB 300 million in assets and RMB 3 billion in liabilities after liquidation. In 2016, the land use rights, sea area use rights, above-ground buildings, equipment and stock of spare parts of Huahai Shipbuilding located at the east end of Shugang Road, Hushan Town, Lanshan District were auctioned.
In November 2023,Shangang (Shandong) Offshore Equipment was established relying on the former Huahai Shipbuilding site. With a registered capital of RMB 80 million and an area of more than 1,000 mu, it has the production capacity of building 10 ships of 50,000 tons per year, 6 ships of 80 meters and below and 3 segments of 3,000-ton offshore modules, with a planned annual output value of RMB 3 billion.
Shandong Port Group is building a “Shandong Port High-end Offshore Equipment Industrial Park Project” with a total planning area of 4,000 mu. According to local government information, the Shandong Port High-end Offshore Equipment Industrial Park project with a total investment of RMB 5 billion, mainly including the construction of a digital assembly center, a digital surface processing center, a block workshop and berthing supporting facilities.
The construction area is 79,000 square meters, the quay shoreline is 1,750 meters long, and there is one new 100,000-ton ship repair floating dock. After the completion of the project, it can form the production capacity of 8 times of 50,000-ton ships per year and 50 times of 100,000-ton ships per year, and is expected to realize the annual output value of RMB 2.04 billion.