Japan-based shipping group Nippon Yusen Kabushiki Kaisha (NYK) and compatriot Oono Development have signed a memorandum of understanding (MoU) to explore the commercialization of responsible ship recycling in Japan jointly.
The agreement, signed Wednesday at NYK’s Tokyo headquarters, aims to establish an environmentally responsible method for dismantling ships and large offshore structures, recycling them into steel scrap and other materials.
The project will utilize Oono Development’s dry dock in Chita City, Aichi Prefecture. The dry dock, at 810-meter-long by 92-meters-wide, is one of Japan’s largest and capable of simultaneously dismantling two large ocean-going vessels.
“Our unique method incorporates state-of-the-art onshore dismantling and waste treatment, with a strong focus on environmental protection and occupational safety,” stated an Oono Development spokesperson.
The partnership comes at a crucial time, as the global maritime industry faces increasing pressure to adopt more sustainable practices about ship recycling.
The International Maritime Organization’s Hong Kong Convention for safe and environmentally sound ship recycling is set to enter into force in June 2025, highlighting the growing importance of responsible ship dismantling.
Also, the EU Ship Recycling Regulation, implemented in 2013, requires EU-flagged end-of-life ships to be recycled at approved facilities. Based on the IMO’s Hong Kong Convention, it ensures environmentally safe and healthy practices, while banning the typical ” beaching ” method among South Asian shipbreakers. The European List includes 45 approved facilities across Europe, Türkiye, and the USA, many capable of handling large vessels.
“This business study is conducted to encourage decarbonization and realize a circular economy through more sophisticated ship recycling that meets the growing global awareness of legal compliance, environmental conservation, and occupational safety assurance,” NYK Group said in a statement.