Ship recycling company GMS has acquired two tankers previously sanctioned by the US government, with the vessels set to be recycled at Alang, Gujarat, according to shipping industry reports.
The transaction highlights the continuing flow of end-of-life vessels into Alang, one of the world’s major ship-recycling centres. The acquisition of the sanctioned tankers also demonstrates the role of specialist recycling buyers in handling vessels that have become difficult to operate commercially because of sanctions.
The two tankers are expected to be sent for recycling after completing the necessary sale, regulatory and compliance procedures. Once delivered to Alang, the vessels will undergo dismantling to recover steel and other reusable materials.
Alang’s established recycling infrastructure allows shipowners and cash buyers to dispose of older vessels while recovering significant quantities of recyclable steel and equipment. The activity also supports a large network of downstream industries involved in steel processing, equipment reuse and related services.
The transaction comes amid continued scrutiny of sanctioned vessels and their ownership and trading arrangements. Buyers involved in such transactions must navigate applicable sanctions, ownership restrictions and regulatory requirements before the vessels can be transferred and recycled.
For India’s ship-recycling sector, the arrival of additional tankers could provide further activity for Alang’s yards and downstream steel markets. Tankers can also offer substantial quantities of recyclable steel and machinery, making them attractive assets for recycling when continued commercial operation is no longer viable.
The deal underlines Alang’s continued importance in the global ship-recycling market and its ability to handle vessels from diverse ownership and trading backgrounds, subject to applicable regulatory and environmental requirements.
