Increase to 12 ships! Hengli Heavy Industries regains orders for bulk carriers from German shipowners

German shipowner Reederi H Vogemann has returned to Hengli Heavy Industry to order four 180000 deadweight ton Cape of Good Hope bulk carriers, increasing its order quantity at Hengli Heavy Industry to 12.

According to Trade Wind, the latest four ships will use traditional fuel and be equipped with scrubbers, and are scheduled to be delivered in 2026 and 2027. The estimated price of each new ship is approximately $70 million, and the total value of the four new ships is approximately $280 million (approximately RMB 2.034 billion). In contrast, the first four 180000 deadweight ton bulk carriers ordered by Vogemann last year cost approximately $63.5 million, with a 10% increase in ship prices over the past year.

As a reference, Clarkson's data shows that the current shipbuilding price for a 176000-180000 deadweight ton bulk carrier is $76.5 million, an increase of 20% compared to the same period last year's $63.5 million. Global inflation, rising labor costs, and strong demand for new shipbuilding are considered the reasons for the price increase.

Vogemann first placed an order with Hengli Heavy Industries in June last year, ordering four 82000 deadweight ton bulk carriers and four 180000 deadweight ton bulk carriers. The new ships are scheduled to be delivered in 2026.

Hengli Heavy Industry's first order also marks Vogemann's re-entry into the Cape of Good Hope ship market. It is understood that the company withdrew from the field of large bulk carriers in 2018 and sold its last 176800 deadweight ton Cape of Good Hope vessel, SM Vision, built in 2008, to South Korea Shipping for approximately $24.3 million.

According to Clarkson's data, Vogemann's fleet currently has 17 bulk carriers, with the exception of 4 Kamsarmax and 1 Ultramax, all of which are flexible vessels of 40000 deadweight tons or less. In addition to orders from Hengli Heavy Industry, Vogemann currently only has four 40000 deadweight ton bulk carriers under construction from Jiangsu Dajin Heavy Industry, two 40000 deadweight ton open hatch vessels from New Yangtze Shipbuilding, and three 40000 deadweight ton open hatch vessels from Zhejiang Yangfan.

In addition, with Vogemann's orders, Hengli Heavy Industry successfully entered the large bulk carrier construction market last year within just six months of production.

It is understood that the predecessor of Hengli Heavy Industry, STX Dalian, was once the largest foreign-funded shipyard in China, with the largest single hull shipyard in northern China. In July 2022, private petrochemical giant Hengli Group entered the high-end coastal equipment manufacturing industry and established Hengli Heavy Industry Group. It successfully acquired STX Dalian assets at a cost of 2.11 billion yuan and established Hengli Shipbuilding (Dalian) Co., Ltd. In January last year, Hengli Heavy Industry Park officially started operation, with an annual steel processing capacity of 1 million tons, a shipbuilding capacity of 6.3 million deadweight tons, and an annual delivery capacity of 40 ships.

In April this year, Hengli Heavy Industry officially named and delivered its first ship, the 61000 deadweight ton bulk carrier "Hengli 33 (HN2033)", marking that Hengli Heavy Industry has fully developed modern shipbuilding capabilities. According to Clarkson's data, as of now, Hengli Heavy Industries has a total of 59 orders of 6.257 million deadweight tons, including 4 VLCCs and 55 bulk carriers, with delivery arrangements continuing until 2027.