CSSC Tianjin Adds Two Drydocks With Purchase of Neighboring Yard

CSSC Tianjin, the Bohai Bay division of world-leading shipbuilder CSSC, is making significant strides with the acquisition of a neighboring yard that went bankrupt in 2021. The acquisition involves parts of Tianjin Xingang Shipbuilding Heavy Industry’s yard in the Tianjin Lingang free zone. Since Tianjin Xingang’s bankruptcy, CSSC Tianjin has been leasing parts of its space, including six plots of land and 22 buildings. With the lease set to expire in December, CSSC Tianjin, which has a full order book and a pressing need for additional space, decided to purchase the yard outright from its owner, Hong Kong Shipbuilding Industry Corporation.

The newly acquired assets include a 500,000-ton drydock, a 300,000-ton drydock, two gantry cranes, a module plant, a paint plant, and over a mile of additional wharfage for outfitting and cargo handling. These assets are expected to boost CSSC Tianjin’s annual shipbuilding capacity by another 2.4 million deadweight tonnes, contributing about five percent to China’s leading total output. The purchase price for this expansion is reported to be approximately $550 million.

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In addition to the Tianjin expansion, CSSC is also enhancing its capabilities in another province. Wuchang Shipbuilding Heavy Industry in Wuhan, another division of CSSC, is acquiring Wuhan Wuchuan Hangrong Heavy Industry Equipment for $134 million. These related-party transactions aim to optimize and adjust the capacity layout and increase production. Amidst a surge in ordering activity, Chinese shipbuilders like CSSC are rushing to expand their capacity, with many booked out through 2028.