Shanghai Waigaoqiao Shipbuilding, the largest shipyard in China, will begin its second development phase next year to create a yard that will have a capacity to build ships with a combined dead-weight tonnage of 2.6 million tons per year by 2010. The facility upgrade cost is reported to be in the region of US$120 million and the completion is expected within a year to 1.5 years. The shipyard began operations from late 2001 and it has delivered three ships to date. Its first ship completed was a 175,000 DWT bulk carrier.

Another focus of the shipyard is construction of floating production storage units. Currently, 10 ships are under construction and it was reported that the shipyard has received orders for ships totaling 4 million DWT. Waigaoqiao focuses on building large ships, which other local shipbuilders are unable to construct due to the limited water depth.
Other shipbuilders located in the same area also intend to upgrade their facilities. Jiangnan Shipyard, the country's oldest shipbuilder, plans to focus on building naval ships and cruise liners. With the two other shipbuilders setting up docks in Changxing, the island is expected to become the world's largest shipbuilding hub with a combined annual capacity to build ships up to 8 million DWT per annum.