India, Bahrain partner to launch biggest Gulf ship recycling hub
New Bahrain facility aims to expand environmentally compliant ship dismantling capacity for commercial vessels and offshore energy assets
MANAMA, Bahrain (MNTV) — Bahrain’s Arab Shipbuilding and Repair Yard Company (ASRY) and India’s Priya Blue Group have launched what the companies describe as the Middle East’s largest ship recycling facility, marking a major expansion of environmentally compliant maritime recycling operations in the Gulf region.
The launch was marked by the arrival of the first vessel for dismantling at the Bahrain-based yard, although the companies did not disclose the ship’s identity.
The joint venture combines ASRY’s shipbuilding, repair and fabrication infrastructure in Bahrain with Priya Blue’s established ship recycling expertise developed in Alang, India, one of the world’s largest ship dismantling centers.
Officials said the project is designed to create a large-scale recycling hub capable of processing commercial vessels as well as offshore oil and gas structures across the Gulf and surrounding maritime routes.
The facility will recycle a wide range of assets, including cargo ships, floating production storage and offloading units (FPSOs), floating storage units (FSOs), drilling rigs and other offshore energy installations.
According to the companies, the yard will use multiple dismantling methods, including dry dock, slipway and alongside recycling systems, allowing it to process very large vessels, including ultra large crude carriers (ULCCs).
The companies said operations would comply with international environmental and safety standards, including the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships and the European Union Ship Recycling Regulation.
Industry analysts say demand for compliant recycling facilities has increased in recent years as global shipping companies face growing environmental scrutiny and tighter regulations governing ship disposal practices.
Priya Blue’s affiliated cash buyer, Best Oasis, will support the operation by sourcing vessels and managing commercial acquisitions before ships are transferred to Bahrain for dismantling.
The project also marks the first major overseas expansion by a large Indian ship recycling company beyond South Asia.
ASRY said the Bahrain facility integrates ship recycling operations with hazardous waste management and environmental handling systems, including specialized capabilities for disposing of naturally occurring radioactive material waste commonly associated with offshore oil and gas infrastructure.
Officials said the partnership would also provide full operational support, including safety management systems, regulatory compliance services, heavy lifting equipment and access to large dry dock facilities.
Priya Blue said the Bahrain project represents a planned expansion of its established recycling business rather than an experimental venture.
The company says it has previously recycled more than 60 vessels, including drillships and ultra large crude carriers, for major international shipping firms.
The launch also aligns with Bahrain’s broader strategy to develop a circular maritime and steel recycling industry supported by regional industrial partnerships and environmental compliance initiatives.
In 2024, ASRY signed a memorandum of understanding with shipping giant Maersk, APM Terminals and Bahraini steel producer SULB to explore additional ship recycling projects in the kingdom.
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