Geneva, Switzerland – Mediterranean Shipping Company (MSC), the world’s largest container carrier, has entered into a strategic partnership with Hengli Heavy Industry Group, a rapidly expanding shipbuilding company based in Dalian, China. The agreement, signed last week in Geneva, outlines a framework for collaboration across several areas, including shipbuilding, engine manufacturing, ship repair, and vessel retrofitting.
The signing ceremony was attended by senior executives from both companies, including MSC’s founder and chairman, Gianluigi Aponte, and Hengli’s chairman and president, Chen Jianhua. While the agreement does not include binding contracts, it signals a significant step in MSC’s strategy to expand its fleet and enhance its operational capabilities.
This partnership aligns with Hengli’s recent announcement of a substantial investment in its industrial park on Changxing Island, Dalian. The company plans to invest RMB 9.2 billion (USD 1.27 billion) to increase its shipbuilding capacity by 1.8 million deadweight tons (dwt) per year, alongside boosting its steel processing capacity by an additional 1.8 million tonnes annually. Hengli aims to raise its total annual shipbuilding capacity to 7.1 million tons, focusing on the production of large containerships and other vessel types.
Hengli, which entered the shipbuilding industry in 2022 following its acquisition of STX (Dalian) from South Korea’s STX Group, is also reportedly exploring a potential initial public offering (IPO) for its shipbuilding unit in Hong Kong. The IPO could raise approximately USD 100 million, although these plans are still in the preliminary stages.
The MSC-Hengli partnership comes as MSC continues to expand its fleet aggressively. Recent reports suggest that MSC has invested over USD 7 billion in new vessels ranging from 11,000 to 21,000 twenty-foot equivalent units (TEU). Additionally, there are unconfirmed rumors that MSC may place an order for six more 19,000 TEU LNG dual-fuel vessels with Shanghai Waigaoqiao Shipbuilding. MSC’s current orderbook stands at 132 ships, totaling 1.82 million TEU, making it the largest in the industry and representing 30% of the company’s existing fleet.
