China’s Hengli Group is lining up an investment of CNY 9.2bn ($1.3bn) in its reborn former STX Dalian shipyard at Changxin Island.

The company said on social media platform WeChat that its subsidiary, Hengli Heavy Industry, will increase its shipbuilding capacity to 1.8m dwt each year, as well as 1.8m tonnes per year of steel processing.

An agreement was signed on 7 July between Hengli and the local governments of Dalian City and Changxin Island regarding the investment, ICIS reported.