Nippon Yusen Kabushiki Kaisha
Oono Development Co.,Ltd.
Promote Circulation of Steel Scrap by Utilizing Japan’s Only Dry Dock that Can Handle Large Vessels
Nippon Yusen Kabushiki Kaisha (“NYK”) and Oono Development Co.,Ltd. ("Oono Development”) have agreed to jointly study the commercialization of ship recycling, in which ships and large offshore structures are dismantled in Japan and recycled as steel scrap and other materials. The memorandum of understanding (MoU) was signed on September 18 at NYK's head office (Chiyoda-ku, Tokyo). NYK Chairman Hitoshi Nagasawa and President Takaya Soga, Oono Development Chairman Teruo Ohno and President Yuji Yamashita attended the signing ceremony.
Signing Ceremony
From left.
Hitoshi Nagasawa, Chairman, NYK
Takaya Soga, President, NYK
Yuji Yamashita, President, Oono Development
Teruo Ohno, Chairman, Oono Development.
Ship dismantling work will be performed at Japan’s only dry dock, which can handle large ocean-going vessels and is owned by Oono Development in Chita City, Aichi Prefecture. Oono Development will adopt its unique method, incorporating state-of-the-art onshore dismantling and waste treatment, with consideration of the environment and occupational safety, and promote the recycling and decarbonization of steel resources.
Background of MoU
①Promoting decarbonization
As the global trend toward decarbonization accelerates, the steel industry is shifting toward electric furnaces and expanding the use of steel scrap. In addition, scrap with low impurity content, which is difficult to remove from molten steel, is becoming increasingly valuable as a high-quality iron resource.
②Promoting a circular economy
Ships are made of large amounts of high-quality steel, and more than 90% of medium and large vessels are recycled as construction materials, recycled materials, or used products. To realize sustainable recycling, ship dismantling work that considers safe, environmentally friendly, and efficient methods is required.
③Increased awareness of environmental protection and occupational safety
In December 2013, the European Union put into effect the EU Regulation on Ship Recycling; in June 2025, the International Maritime Organization will implement the Ship Recycling Convention to ensure environmental protection and occupational safety in ship dismantling. Currently, the number of yards worldwide that meet those standards is limited.
| Business Areas | ・Procurement of dismantling vessels ・Dismantling of vessels ・Sale of valuable resources (steel scrap, used marine equipment, etc.) ・Domestic transportation of steel scrap ・Final disposal of toxic substances, etc., such as detoxification and landfill |
|---|---|
| forte |
Environmentally friendly and efficient demolition with no marine spills of oil or other harmful substances
・A large demolition site of 39 hectares ・The dry dock is one of the largest in Japan (810m depth x 92m wide x 14.3m height) and can dismantle two large ocean-going vessels simultaneously. ・The unique dry-dock method* incorporates state-of-the-art land-based demolition and waste disposal methods, ensuring safety and efficiency. ・A new high-efficiency incineration power generation facility will be constructed on the site to complete the treatment of industrial waste. ・Both a mooring quay and a coastal quay are installed, allowing for the mooring of vessels and the removal of scrap iron and other valuable materials on the site. |
Image of this project promoting a circular economy
Oono Development, based in Ehime Prefecture, is engaged in various environment-related businesses, ranging from demolition to waste disposal. It aims to realize a sustainable resource-recycling society. In demolition work, Oono Development uses large, heavy equipment methods that can solve the issues of safety, environment, and speed and has a great deal of knowledge in this business area.
NYK Group has been working to achieve its goal regarding ship dismantling, which is to ensure that ships are appropriately dismantled in accordance with the standards of the Ship Recycling Convention. In addition, the Dry Bulk Business Division has been working to participate in supply chains beyond the shipping industry, focusing on commodities that promote decarbonization to develop new businesses. 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.
| Name | Overview | Contacts |
|---|---|---|
| Nippon Yusen Kabushiki Kaisha | Head office: Chiyoda-ku, Tokyo Representative: Takaya Soga, President Website: https://www.nyk.com/english/ |
Media Relations Team, Corporate Communication Group Phone: 03-3284-5190 E-mail: NYKJP.ML.MEDIA@nykgroup.com |
| Oono Development | Headquarters: Matsuyama City, Ehime Prefecture Representative: Teruo Ohno, Chairman / Yuji Yamashita, President Website: https://www.oono-as.jp/ |
Public Relations Division, General Affairs, and Personnel Department Phone: 089-976-1234 Please contact us through our website. |
*Dry dock method
A method in which the vessel is pulled out of the water and the demolition work is performed in a facility on land. Compared to demolition on the water or beach, this method is safer and has much less environmental impact.
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