Shanghai's Changxing Island leads China's shipbuilding innovation

Changxing Island, located near Shanghai, stands as a beacon of China's shipbuilding prowess, housing the nation’s largest and most advanced shipyards.

China has dominated the global shipbuilding market for 14 consecutive years. It has three major shipbuilders: Jiangnan Shipyard, Hudong-Zhonghua Shipbuilding, and Shanghai Waigaoqiao Shipbuilding. All of them rank among the world's top ten in terms of order volume.

Situated 40 kilometers from downtown Shanghai, Changxing Island boasts a sprawling 14-square-kilometer factory space along a 16-kilometer-long deep-water shoreline. Over 70,000 people are work in the docks and on the piers, with the number of ships under construction once surpassing a record high of 60.

On Changxing Island, the most cutting-edge vessels at Jiangnan Shipyard include dual-fuel container ships, which can reduce greenhouse gas emissions by 28 percent per voyage; China's fifth-generation LNG carriers, with a 174,000 cubic meter capacity to supply gas for a month to 3 million households; and the world's largest new-generation ultra-large container ship, capable of carrying 24,000 containers.

"The current task involves cutting the plates for the middle section of the ship’s deck. With our machinery, we can process about 15 full plates in an 8-hour shift," said Li Jiajia, an engineer from Jiangnan Shipyard's manufacturing department.

The shipyard’s plasma cutting machines enable automatic cutting with exceptional precision and high speed, capable of slicing through 50-millimeter-thick steel plates in seconds. However, shaping these thick plates into curved forms remains a challenge.

In the cold press workshop, a domestically developed three-dimensional computer numerical control (CNC) bending machine with over 100 independent press heads has dramatically boosted efficiency through hydraulic and servo motor control.

"We can increase efficiency by five to ten times. Now our operators work in computer rooms, with improved working environment and incomes," said Wu Yizhong, an operator at Jiangnan Shipyard.

During the shipbuilding process, sections of steel plates are welded into segmented components of the ship's hull, then transported to the dock for final assembly, facilitated by comprehensive digitalization of shipbuilding.

In the virtual reality (VR) interactive training room, equipped with four walls of screens, engineers use a digital platform and headsets to simulate and improve the ship's internal structure, reducing errors.

"On the model, we can pinpoint issues reported from the site, allowing for more precise coordination. This showcases the transformative impact of digitalization," said Wang Jie, a digital design supervisor at Jiangnan Shipyard.

Moored at the pier is a liquefied natural gas (LNG) carrier, renowned globally for its advanced technology, high added value, and reliability. Hudong-Zhonghua Shipbuilding now holds orders for over 50 carriers scheduled for production until 2031.

Building an LNG ship involves the installation of invar steel, which is used to insulate liquefied natural gas. Despite being as thin as two layers of eggshell, invar steel can maintain its shape from 20 degrees Celsius down to minus 163 degrees Celsius.

This advanced steel, developed through collaboration between Hudong-Zhonghua and upstream enterprises, effectively replaces imported materials.

"The performance metrics of our vessels are already leading globally. The future prospects for shipbuilding are very promising, and I am confident," said Huang Huabing, deputy chief engineer of LNG at Hudong-Zhonghua.

Shanghai's Changxing Island leads China's shipbuilding innovation

A 25 percent import tariff on all foreign-built vehicles entering the United States has raised serious concerns for manufacturers in South Africa.

Automotive giants like Mercedes and BMW have long used South Africa as a base for global exports -- but those plans may be shifting into reverse gear after the U.S. announced the punitive measures.

"If you take, for example, BMW, 97 percent of the X3 that we are producing in Rosslyn is exported out of the country. We only sell 3 percent in South Africa, and there's a huge number of those vehicles that also go into the U.S. So there are companies in South Africa that are purely here not because they are selling vehicles in South Africa; they are here to produce vehicles for the global market, and it's important for them to remain globally competitive," said Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa.

U.S. automaker Ford, which has deep roots in South Africa, is also in the crosshairs.

The company recently invested over 300 million U.S. dollars to upgrade its Silverton plant in Pretoria, South Africa, for the production of the world's only plug-in hybrid Ranger, which has just entered production but could face delays or restrictions.

"If an American citizen wants to buy specifically a Ford Ranger that is a plug-in hybrid, they can only place an order in South Africa, nowhere else in the world. So, that means, obviously, the capacity of Ford to be able to produce those vehicles in big volumes is going to be constrained, because Americans are going be looking at another Ford that is produced in another country, or even in the United States," said Mabasa.

South Africa has long enjoyed duty-free automotive exports to the U.S. under the African Growth and Opportunity Act, but that relationship now hangs in the balance.

A sharp shift in U.S. foreign policy threatens to derail an industry that employs thousands and contributes around 5 percent to the country's economy.

"We produce less than 1 percent of global automotive vehicles, so to say. So, in reality, the impact on us is likely to be more disproportionate than those of our peers that produce at the same level. And the risk is actually created -- a concentration risk -- in countries that have greater capacity and are building more; in those countries will be able to absorb some of this," said Parks Tau, South Africa's minister of trade and industry.

Amid growing concerns about overreliance on the U.S. market, Amith Singh, national manager for manufacturing at Nedbank Commercial Bank, emphasized the importance of tapping into regional trade opportunities.

"I think we need to make better use of some of our local agreements, our African continental agreements. How do we leverage that? How do we partner with the government and private sector to start benefiting the countries and the economies aside from the United States? So, those could be the catalyst to drive our localization projects; it could be what we need to drive the African economy as opposed to being completely reliant on the States (United States)," he said.

South Africa is for now standing firm in its decision not to retaliate against steep U.S. import tariffs, set to take effect in just a few days.

Officials in Pretoria acknowledge the challenges posed by the current U.S. administration but are pursuing a diplomatic approach in hopes of maintaining stable relations and preserving the African Growth and Opportunity Act.

US tariffs rock South Africa’s auto industry