India And Bahrain Launch Middle East’s Largest Ship Recycling Facility

Bahrain’s Arab Shipbuilding and Repair Yard Company (ASRY) and India’s Priya Blue Group have officially launched a joint venture facility, marked by the arrival of the first vessel for dismantling at the Bahrain yard.

The project is described by the companies as the Middle East’s largest ship recycling facility. It brings together ASRY’s ship repair and fabrication infrastructure in Bahrain with Priya Blue’s established recycling operations in Alang, India.

The aim is to create a large-scale, compliant recycling hub for ships and offshore assets in the Gulf region.

The facility will handle both commercial vessels and offshore energy structures, including FPSOs, FSOs, drilling rigs, and other offshore installations.

It will use dry dock, slipway, and alongside recycling methods and is designed to process very large ships, including ULCC-class vessels.

The companies said the operation will follow international environmental standards, including the Hong Kong Convention and the EU Ship Recycling Regulation, targeting shipowners looking for approved and environmentally safe recycling options.

The identity of the first vessel sent to the Bahrain yard has not been disclosed.

Priya Blue’s affiliated cash buyer, Best Oasis, will support the project by sourcing ships and managing their commercial purchase before they are sent for recycling in Bahrain.

This is the first time a major Indian ship recycling company has expanded a large-scale operation outside South Asia.

The move comes as global shipowners face increasing pressure to use environmentally compliant recycling facilities located closer to major shipping routes.

Priya Blue said on social media that the project is a “planned expansion of an established business” and not an experimental project.

The Bahrain facility will combine ship recycling with hazardous waste handling and environmental management systems in one setup.

ASRY already has licences to handle and dispose of naturally occurring radioactive material waste, which is important for recycling offshore oil and gas assets and ageing production platforms.

The partnership will also provide full operational support, including safety management, regulatory compliance, heavy lifting equipment, and access to dry docks.

Priya Blue is one of India’s major green ship recyclers and says it has recycled more than 60 vessels, including drillships and ULCCs. Its past clients include Stolt Tankers, Transocean, NYK, MOL, and K Line.

ASRY has also been building its position in ship recycling through cooperation with Dutch company Elegant Exit Company and has received certifications linked to the Hong Kong Convention, EU Ship Recycling Regulation, and ISO 30000 standards.

The launch is also part of Bahrain’s plan to develop a circular maritime and steel recycling industry.

In 2024, ASRY signed a memorandum of understanding with Maersk, APM Terminals, and Bahrain steel company SULB to explore ship recycling projects in the country with government support.

References: indiashippingnews, indexbox