Chinese players sign strategic pact to ‘advance’ specialty materials for ammonia-fuelled vessels

September 10, 2025, by Sara Kosmajac

Hong Kong-headquartered Luda Technology Group has signed a series of strategic cooperation agreements with several Chinese shipbuilding titans to jointly conduct the research and development (R&D) and manufacturing of specialty-material flanges and pipe fittings for ammonia-fueled vessels.

Illustration only; Archive. Courtesy of NYK

Specifically, Luda Technology Group’s arm Luda (Taian) Industrial Company has shaken hands with major vessel construction players, including China State Shipbuilding Corporation (CSSC), Haiting (Nantong) Shipbuilding Company and COSCO Shipping Heavy Industry, to carry out this initiative.

The project is described as a ‘significant’ leap forward in the Chinese shipbuilding industry’s efforts to achieve supply chain autonomy and “high-end” transformation concerning critical components.

As disclosed, under the agreements, Luda Tainan is to provide a full portfolio of products for ‘high-value-added’ vessel types currently under construction, such as liquefied natural gas (LNG) carriers, ultra-large containerships, chemical tankers, as well as cruise ships.

According to Luda Technology Group, the partners will also set up joint technical R&D teams to drive innovation like new material applications, ‘advanced’ process development and digital supply chain management, which is hoped to help China meet the challenges—and the opportunities—of a “greener and smarter future.”

As the Hong Kong-based manufacturer has elaborated, this initiative reflects a growing need for more sustainable solutions, particularly with the continued implementation of new environmental stipulations, such as those set by the International Maritime Organization (IMO), which have made green and low-carbon development an “inevitable” path in the global maritime transport industry.

Furthermore, the engineering of ships powered by new clean fuels, including ammonia, hydrogen and methanol, has become a focal point in the maritime sector as it sails toward net zero. Despite the growing interest in these fuels, however, the high corrosiveness and hydrogen embrittlement risks of ammonia on metal materials, traditional carbon and stainless steels tend to fall short of the strict regulations.

Given this, Sun Yanru, who is the R&D Director of Luda Taian, underscored: “Green-powered vessels pose revolutionary requirements for critical components. We must plan ahead, work with leading partners on joint R&D, and co-define the technical standards for next-generation products in order to take the initiative in global competition.”

To try and address these issues, it is understood that Luda Tainan has invested in testing ammonia-resistant materials (including high-nickel alloys and special stainless steels), along with the engineering of corresponding welding and heat treatment processes.

The company’s laboratories and testing centers are said to enable “comprehensive” performance examinations and lifecycle assessments of new material samples, too, in order to ensure that the products would be compliant with international standards.

It is worth noting that China has maintained its position as the world’s biggest shipbuilder into 2025, extending its lead in global completions, new orders and backlog for the 15th consecutive year.

Data released by the China Association of the National Shipbuilding Industry (CANSI), for instance, shows that Chinese yards delivered 24.13 million deadweight tonnes (DWT) in the first half of this year.

Full-year figures for 2024 only underline this reality: the Asian nation had clinched contracts for the construction of 3,454 out of a total of 5,735 new vessels, representing 62% of the worldwide orderbook. Together with South Korea and Japan, China held as much as 90% of the orderbook last year.

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The country has also been accelerating its efforts to integrate ammonia as a low-carbon fuel into its maritime fleet. Early deployments, advancements in ship design, as well as supply chain developments, have signalled a strategic move toward this alternative fuel, even as technical and safety challenges remain.

Among notable ‘milestones’ within this sphere is the execution of what was hailed as China’s first green ammonia bunkering in Dalian. The operation involved refueling the ammonia-powered tugboat Yuantuo 1, which was produced as part of COSCO Shipping Heavy Industry’s project “R&D and Demonstration Application of Ammonia-powered Dual-fuel Engine and Supply System.”

In mid-2025, construction also began on the country’s ‘first’ domestic 25,000 cbm ammonia dual-fuel LPG/liquid ammonia carrier. The production commenced at CSSC Huangpu Wenchong shipyard, under contract with Tianjin Southwest Maritime.