NYK Partners to Reintroduce Ship Recycling in Japan

Japanese shipping company Nippon Yusen Kaisha (NYK) is taking steps to revive ship recycling in Japan.

NYK has signed a memorandum of understanding with Oono Development, a fellow Japanese company, to launch a business venture aimed at dismantling ships and large offshore structures in Japan. These structures would be recycled into steel scrap and other reusable materials.

As Japan's steel industry transitions towards electric arc furnaces, focusing on ship recycling could help address the persistent challenge of impurities in steel scrap, potentially leading to a new era in steel manufacturing.

Ships are composed of large amounts of high-grade steel, with over 90% of medium and large vessels being recycled into construction materials, reusable products, or raw materials.

According to NYK, scrap metal with minimal impurities is becoming increasingly sought after as a valuable iron resource, since these impurities are difficult to eliminate from molten steel. However, for recycling to be sustainable, the dismantling process must prioritize safety, environmental impact, and efficiency.

The dismantling operations are planned to take place at Japan's only recycling dry dock, located in Chita City, Aichi Prefecture. This facility, owned by Oono Development, is capable of handling large ships and is among the biggest in Japan, able to dismantle two large vessels simultaneously.

Oono Development, based in Ehime, is involved in various environmentally focused businesses, including demolition and waste management.

For years, countries such as Bangladesh, Pakistan, India, and Turkey have led the global ship recycling industry, especially since China stopped accepting foreign-flagged ships for recycling in 2019. However, other nations like Egypt, Brazil, and Bahrain are now looking to enter this market, which is projected to experience significant growth by 2028.

Although electric arc furnaces have not yet begun producing the high-cost steel plates required for shipbuilding, there is potential for recycled ship scrap to be transformed into thick steel plates for shipyards. This could open the door to fully circular shipbuilding practices in the future.