CIMC SOE in Qidong, Nantong has long been known for its shipbuilding prowess. [Photo/WeChat account: qidongfabu]

CIMC Sinopacific Offshore & Engineering in Qidong, Nantong signed a shipbuilding contract with Danaos, one of the world's largest independent container ship owners, last month to build six 1,800-TEU container vessels, with options for two more. Delivery slots are already filled through 2029, and negotiations are under way for an additional four container ships.

To date, CIMC SOE has secured nearly 10 billion yuan ($1.44 billion) in shipbuilding orders alone, with production lines operating at full capacity.

This is not CIMC SOE's first move into container ship construction. In March and June of 2025, two 1,450-TEU dual-fuel container vessels built by the company were successfully launched.

Long known as a leader in niche markets such as small- and mid-sized liquefied gas carriers and LNG bunkering vessels, CIMC SOE's entry into container ships may seem like a crossover. But for Yan Kai, head of the Shipbuilding Project Management Department, it is a natural step.

"For a yard capable of building high-tech gas carriers, container ships are essentially a step down in technical complexity," he said. CIMC's reputation in gas carrier construction, its global client base, and its in-house designs for cargo-handling systems and tanks have helped build trust with container ship owners.

Market fundamentals are also shifting in CIMC's favor.

Data from shipbroker Braemar show that around 20 to 23 percent of container ships in the 1,800-2,900 TEU segment are already over 20 years old, a figure that is expected to rise to 45 percent by 2030.

At the same time, global trade is becoming more regionalized, increasing demand for smaller container vessels that offer flexible routing and access to secondary ports.

"The market has entered the right cycle, and we want to seize the opportunity to supplement capacity," Yan said.

CIMC SOE is also working closely with Qiannao Heavy Industry, a partner located in the same industrial park. While project management remains the purview of CIMC's team, Qiannao provides labor resources. This model allows CIMC to expand output without heavy asset investment, while offering partner shipyards a stable flow of orders — a win-win arrangement.