NYK and Oono Development Sign MoU to Commercialize Ship Recycling Business

Promote Circulation of Steel Scrap by Utilizing Japan's Only Dry Dock that Can Handle Large Vessels

Sep. 18, 2024



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.

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.

Image of Chita Dismantling Works, Oono Development.   Image by NYK Group.

Image of Chita Dismantling Works, Oono Development.   Image by NYK Group.

Background of MoU

Promoting 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.

Promoting 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.

Increased 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.

Overview of Domestic Ship Recycling Business



Image of this project promoting a circular economy,   Image by NYK Group.

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.


Signing Ceremony. From left: Hitoshi Nagasawa, Chairman, NYK, Takaya Soga, President, NYK, Yuji Yamashita, President, Oono Development, Teruo Ohno, Chairman, Oono Development.   Image by NYK Group.

Company Profiles and Contact Information

* 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.

NYK Group, press release