When will China surpass South Korea in high-end shipbuilding?

South Korea is the world’s largest producer of LNG carriers. However, South Korea must import Invar steel from France’s GTT company and use GTT’s developed cargo containment systems. For each LNG carrier it builds, South Korea pays GTT approximately $10 million in patent fees. To understand GTT, we must first examine the two main technical routes for large-LNG-carrier containment systems: the MARK-series membrane-type cargo containment system and the NO-series membrane-type system made of Invar steel. GTT’s Technology Both technologies originated in the 1960s and were originally held by two separate French companies. In the 1990s, these two companies merged to form GTT, thereby monopolizing thin-film containment technology for LNG carriers. GTT also became the sole global supplier of Invar steel. Since then, GTT has commanded roughly 90% of the global market share. In other words, any country wishing to build LNG carriers must purchase raw materials from GTT, adopt its technology, and—crucially—obtain GTT certification to be deemed qualified to enter the large-LNG-carrier market. Recent Profit Data for GTT In one phrase: “They earn money effortlessly.” Some may ask: Can’t countries bypass GTT’s technology altogether? Theoretically, yes—but commercially, it makes little sense. First, GTT’s technical solutions and materials are virtually monopolistic. All major classification societies—the maritime inspection and certification bodies responsible for newly built vessels—recognize GTT’s designs and materials. Bear in mind: a single large LNG carrier costs upwards of $200 million; without GTT’s endorsement, insurers won’t even underwrite the vessel. Second, GTT’s solution is also the most cost-effective. For example, Japan—once the world’s top LNG carrier builder—stubbornly pursued spherical-tank LNG carriers. Though this route incurred lower patent fees, its higher construction costs and greater technical difficulty gradually forced Japan out of the LNG carrier market, allowing South Korea to take over as global leader. Major shipbuilding nations worldwide have attempted to circumvent GTT by developing alternative technologies and materials to become the new industry “hegemon.” Of course, until such new technologies and materials mature and gain broad market acceptance, both China and South Korea have adopted the pragmatic strategy of “if you can’t beat them, join them”—though China has taken a more proactive stance on achieving technological self-reliance. Baosteel’s Invar steel has passed GTT certification, making it only the second globally certified supplier—and has also received certification from the China Classification Society (CCS). At the end of the 1990s, GTT promoted its membrane technology in China. GTT proposed a cooperation model with Chinese shipyards: providing only design drawings and inspection services—not physical components—while requiring shipyards to procure parts exclusively from GTT-approved suppliers, and charging a 5% patent fee per vessel’s total construction cost. Domestic shipyards found this “take-it-or-leave-it” clause difficult to accept. Yet surging domestic demand for LNG carriers left no room for hesitation. In 2003, Guangdong launched China’s first LNG project, and Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. began collaborating with France’s Atlantic Shipyards.

Lanshi Heavy Equipment Research Report: Fully Benefiting from the Dual-Carbon Strategy; Nuclear Power Business Steps Up as Polysilicon Business Gains Momentum

The company has long focused on traditional energy equipment sectors—including petroleum refining and chemical processing, coal chemical processing, and related fields—and is the only listed company in China possessing both engineering design capabilities and core equipment manufacturing capacity in the petroleum refining and chemical processing sector. It holds Class-A engineering design qualifications in three areas: chemical engineering, storage and transportation of petroleum and chemical products, and petroleum refining engineering—as well as Grade-II general contracting qualification for petrochemical engineering. Its primary products in traditional energy equipment are various high-end pressure vessels, mainly used in petroleum refining, chemical processing, and coal chemical processing. In petroleum refining, key products include reforming reactors, hydroprocessing reactors (plate-welded and forged-welded types), threaded heat exchangers, diaphragm-type heat exchangers, high-pressure vessels (hot high-pressure separators, cold high-pressure separators), and circulating hydrogen desulfurization towers. In chemical processing, key products include high-pressure tubular reactors and large-scale column equipment. In coal chemical processing, key products include gasifiers, shift reactors, water wash towers, intermediate heat exchangers, and waste heat boilers. In fine chemical processing, key products include various reaction kettles and special-material pressure vessels. 1. High-End Pressure Vessel Equipment Business for Petroleum Refining & Chemical Processing (including petrochemicals, coal chemicals, and fine chemicals) Pressure vessels are manufactured either via plate-welding or forged-welding methods. The company is a national leader in plate-welded pressure vessels and occupies an industry-leading position domestically, guiding the development direction and representing the highest manufacturing standards for plate-welded pressure vessels. In forged-welded pressure vessels, the company can now produce single-unit hydroprocessing reactors weighing over 1,000 tons—breaking the monopoly previously held by only a few domestic enterprises in the manufacture of ultra-large forged-welded pressure vessels exceeding 1,000 tons. Within high-end pressure vessel equipment, the company primarily manufactures critical large-scale refinery and chemical plant equipment—including hydroprocessing reactors, threaded-lock-ring high-pressure heat exchangers, four-in-one continuous reforming reactors, and high-pressure separators—capable of producing individual pressure vessels weighing over 1,200 tons. Leveraging its mobile mega-vessel factory, it can assemble ultra-large pressure vessels on-site at customer facilities—capable of handling diameters exceeding 4.8 meters and weights up to 2,000 tons. The company has achieved numerous “firsts” and “national records” in China’s petroleum refining and chemical equipment sector: from the first high-pressure hydroprocessing reactor in the 1960s, the first 110,000-ton stainless-steel urea synthesis tower, the first 10,000-ton high-pressure polyethylene reactor, and the first hoop-type hydrofining reactor—to the first stainless-steel strip-clad hot-wall hydroprocessing reactor, Asia’s first elevated cooling unit, China’s sole manufacturer of “four-in-one” continuous reforming reactors, the first hydroprocessing reactor made from 2.25Cr-1Mo-0.25V steel, and China’s largest threaded-lock heat exchanger—repeatedly setting new national records for “largest diameter,” “heaviest weight,” and “thickest wall” among similar products. The company is a leading domestic manufacturer of spherical tanks and one of China’s earliest producers of such equipment. It has independently developed spherical tanks in diverse specifications, structures, materials, and pressure ratings. It can design and manufacture spherical tanks ranging from 50 m³ to 25,000 m³ in volume, operating at pressures from −0.1 MPa to 3.15 MPa, using materials including 20R, 16MnR, Q370R, 07MnCrMoVR, 07MnCrMoVDR, and 09MnNiDR. Its annual output of high-quality spherical tanks reaches 37,500 tons, widely applied across petroleum, chemical, metallurgical, and other industries—and repeatedly honored with awards.

Ball Corp., 146-Year-Old Can Maker, Hits Unprecedented 50-Year Stock Winning Streak

3 days ago

Ball Corp. recorded an unprecedented 11-day stock winning streak gaining over 13%, outperforming the S&P 500, driven by falling aluminum prices and strong second-quarter earnings.

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2026-10-20

Ball Corp., 146-Year-Old Can Maker, Hits Unprecedented 50-Year Stock Winning Streak

Ball Corp., 146-Year-Old Can Maker, Hits Unprecedented 50-Year Stock Winning Streak

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