Hudong-Zhonghua Shipbuilding (Group) Co Ltd and China Shipbuilding Trading Co Ltd have signed a major contract with Greek company Dynacom for 12 very large crude carriers, or VLCC.

The deal, signed on June 1 during Posidonia 2026 in Greece, one of the world's leading international maritime exhibitions, is valued at nearly 10 billion yuan ($1.47 billion), with part of the payment to be settled in renminbi.

Construction of the series is scheduled to begin in October 2027.

The 12 VLCCs will adopt a new-generation 307,000-deadweight-ton design developed by the Marine Design and Research Institute of China, part of China State Shipbuilding Corporation.

The vessels will use standard principal dimensions for VLCCs while integrating advanced technologies and design specifications to enhance fuel efficiency, construction efficiency, and environmental performance.

The order highlights China's competitiveness and industry-chain strength in the global energy shipping equipment sector.

Hudong-Zhonghua also negotiated with shipowners to use dual-currency settlement in renminbi and US dollar as part of efforts to manage exchange rate risks and improve project returns.

The contract also reflects Shanghai's strength in high-end shipbuilding. Based in Shanghai, Hudong-Zhonghua has built strong capabilities in large LNG carriers, ultra-large container ships, and other high-value vessel types. Supported by its intelligent factory, the company has developed a competitive edge in the parallel construction and batch delivery of high-end vessels.

Source: Shanghai Observer