NYK and Oono Development sign MoU to commercialize ship recycling business

The memorandum of understanding was signed on September 18 at NYK’s head office. NYK Chairman Hitoshi Nagasawa and President Takaya Soga, Oono Development Chairman Teruo Ohno and President Yuji Yamashita attended the signing ceremony. 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.