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NYK and Oono Development launch eco-friendly ship recycling initiative in Japan

Nippon Yusen Kabushiki Kaisha (NYK), a Japan-based shipping company, has signed an agreement with Oono Development to build the country's only recycling plant.

NYK and Oono Development launch eco-friendly ship recycling initiative in Japan

Nippon Yusen Kabushiki Kaisha (NYK), a shipping company based in Japan has agreed with Oono Development to explore the commercialization of environmentally responsible ship recycling. The memorandum of understanding between the two companies was signed at NYK’s Tokyo headquarters, aiming to establish a sustainable method for dismantling ships and large offshore structures in Japan.

The project will be carried out at Oono Development's dry dock facility in Chita City, Aichi Prefecture, one of Japan's largest, measuring 810 meters in length and 92 meters in width. This facility stands out as it has the capacity to dismantle two large ocean liners simultaneously.

The companies intend to recycle ships into steel scrap and other reusable materials using an advanced onshore dismantling and waste treatment process. This method is designed with a strong emphasis on environmental protection and occupational safety, addressing growing concerns within the maritime industry about sustainable practices.

The collaboration comes at a critical time, as the global maritime sector faces increasing pressure to implement eco-friendly ship recycling methods. With stricter international regulations on the horizon, including the forthcoming enforcement of the International Maritime Organization's (IMO) Hong Kong Convention for safe and environmentally sound ship recycling in 2025, the need for responsible dismantling methods is more urgent than ever.

In addition, the European Union's Ship Recycling Regulation, in place since 2013, mandates that EU-flagged vessels be dismantled at approved facilities, ensuring environmental and occupational safety standards are met. This regulation bans hazardous "beaching" practices commonly seen in South Asia and promotes sustainable ship recycling across certified facilities in Europe, Türkiye, and the USA.

The joint project between NYK and Oono Development aims to contribute to decarbonization efforts while advancing the circular economy. By developing more sophisticated recycling methods, the partnership seeks to align with the growing global focus on legal compliance, environmental conservation, and safety in ship dismantling.

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