China Merchants has expanded its shipbuilding portfolio by acquiring Qingdao Yangfan Shipbuilding, enhancing its capability in building large bulk carriers and containerships. This acquisition marks a significant strategic move for the company, increasing its number of shipyards to seven.
Months of negotiations with local authorities concluded with a co-operation agreement being signed in February 2025. The official announcement of the acquisition is anticipated in May. The former name on the gantry cranes at the shipyard has already been replaced with "CMI Qingdao Shipyard," signaling the completion of the deal.
Zhang Yao, a manager at C&D Shipbuilding, described the acquisition as a "natural match" to strengthen China Merchants Industry Holdings's (CMI) capabilities in container ships and large bulk carriers. The integration with Qingdao Yangfan is expected to benefit from CMI's fully integrated supply chain.
The Qingdao yard, part of the Nudao shipbuilding base, spans 790,000 square meters and is equipped with two dry docks. It is expected to reach a production capacity of 200,000 tonnes of steel annually and build up to 1.5 million deadweight tons (dwt) in vessels. The yard's current order book includes eight 210,000-dwt bulk carriers and nineteen 82,000-dwt bulk carriers.
Notably, this acquisition occurs amidst rising US-China trade tensions, with potential US-imposed port fees on China-built ships posing a threat to global shipbuilding dynamics. China Merchants remains focused on solidifying its market positioning despite such challenges.