China has added a new state-owned entrant to its shipbuilding industry with the launch of Guangzhou Marine Equipment Group Co., Ltd., a company with RMB2 billion in registered capital that will participate in the development of new shipbuilding bases in southern China.

Formally unveiled on 19 October 2026, the group is wholly owned by Guangzhou Industrial Investment Holdings Group (GIIHG) and ultimately controlled by the Guangzhou municipal government. It was incorporated on 24 July and is based in Nansha district. Li Weibiao serves as chairman and general manager, while also holding both positions at Guangzhou Diesel Engine Factory.

A new municipal player in an established shipbuilding centre

The establishment gives Guangzhou a new municipal vehicle for developing its own shipbuilding and marine equipment businesses. In an interview with Guangzhou Daily, Li explained that the city’s shipbuilding industry had largely been driven by centrally owned enterprises. Guangzhou now wants to develop locally owned shipbuilding businesses through cooperation with those established operators. The new group is intended to connect industrial investment, project development and manufacturing resources, with access to land, industrial parks and funding to help attract equipment suppliers and other businesses.

Its initial partnerships reflect that approach. At the unveiling ceremony, the group signed strategic cooperation agreements with Guangzhou Shipyard International (GSI), Huangpu Wenchong, COSCO SHIPPING Specialized Carriers, SEAHI Robotics, the Guangzhou branch of China Classification Society and other organisations. The cooperation covers marine equipment research and manufacturing, technological innovation and the commercialisation of research. The group also plans to work with established shipbuilders on the Longxue North and Xiaohu Island shipbuilding bases.

New capacity planned for 2029

A major project associated with the expansion is the Longxue North marine equipment manufacturing and support base in Nansha, where construction began on 21 September. The project carries an investment of approximately RMB7.25 billion, rising to more than RMB10 billion when associated roads, embankments and other supporting works are included. Full operation is scheduled for June 2029, with planned annual shipbuilding capacity of 18 vessels, equivalent to about 800,000 dwt. Initial products are expected to include medium and large containerships, LR2 tankers and Panamax bulk carriers.

The investment and operating arrangements bring together four local state-owned groups and an experienced shipbuilder. Nansha Transportation Investment Group, GIIHG, Guangzhou Port Group and Guangzhou Construction Group jointly established the project company to develop and deliver the facilities. GSI will operate the completed base, bringing in orders, technical systems, supply-chain resources and production teams, while taking responsibility for vessel quality, delivery schedules and after-sales service.

This structure gives the expansion an established route to market: local state-owned investors provide the facilities, while a shipbuilder with existing customers and production experience manages vessel construction. The capacity increase is therefore tied to a specific project and operating arrangement, with production due to begin later this decade.

Building the supply chain around the shipyard

Guangzhou Marine Equipment Group’s remit extends across propulsion equipment, offshore engineering equipment and offshore renewable-energy equipment. Its planned services include green propulsion maintenance and retrofits, industrial park development and operation, financial leasing, and inspection, testing and certification. The municipal government also envisages industrial funds, technology platforms and industry alliances to support the business. These activities give the group a role throughout the development and operating life of marine equipment, connecting newbuilding investment with equipment supply and subsequent vessel upgrades.

The parent group provides an existing industrial base for that strategy. GIIHG’s businesses span manufacturing, industrial finance and industrial services, including marine equipment. Guangzhou’s official announcement identifies established capabilities in marine engines, offshore equipment and offshore wind-power transmission components as foundations for the new group. Li’s concurrent leadership of Guangzhou Diesel Engine Factory also connects the new enterprise with the city’s existing marine propulsion industry.

An ambition reaching into larger and more specialised ships

Li has outlined longer-term ambitions encompassing LNG carriers, containerships of more than 10,000 teu, VLCCs, large car carriers and cruise ships. The group also intends to work with universities, research institutes and specialist businesses on deep-sea exploration equipment, subsea resource development and unmanned systems, extending its investment focus into emerging offshore technologies.

The plans sit within Guangzhou’s wider ambition to expand its maritime industrial base. According to the development blueprint described by Li, the city is targeting a shipbuilding-related industry worth RMB200 billion by 2035, comprising RMB100 billion in ship construction, RMB50 billion in supporting equipment and RMB50 billion in services.

For international shipowners and equipment suppliers, the formation of the group points to a further source of investment in Chinese shipbuilding capacity and its supporting industries. Guangzhou is combining municipal capital, established shipyard operations and marine equipment businesses in a coordinated expansion. The next tangible steps will be the completion of the new facilities, the deployment of production teams and the orders allocated to the additional capacity.