Bahrain has entered the large-scale ship recycling market after Arab Shipbuilding and Repair Yard Company (ASRY) and Indian giant Priya Blue Group officially launched their joint venture, marked by the first vessel reaching the Gulf facility for scrapping.
The project combines ASRY’s ship repair and fabrication infrastructure with Priya Blue’s experience in vessel recycling at Alang, India. The companies describe the facility as the largest ship recycling site in the Middle East.
The yard will handle not only conventional ships, but also offshore units such as FPSOs, FSOs, drilling rigs and other offshore structures. According to the companies, the facility will support dry dock, slipway and alongside recycling methods and will be capable of processing vessels up to ULCC size.
The partners said the operation will comply with the standards of the International Maritime Organization Hong Kong Convention and the EU Ship Recycling Regulation, targeting shipowners seeking environmentally compliant recycling solutions in the Gulf region.
The identity of the first vessel delivered for dismantling has not been disclosed.
Priya Blue’s affiliated cash buyer Best Oasis will support the project by sourcing ships and managing commercial acquisitions for recycling in Bahrain.
The venture marks the first time a major Indian recycling company has established a large-scale operation outside South Asia, amid growing pressure on shipowners to secure compliant recycling solutions closer to key shipping hubs.
ASRY said the facility will integrate ship recycling, hazardous waste handling and environmental management systems within a single platform. The company already holds licences for handling naturally occurring radioactive material waste, which is considered particularly important for ageing offshore assets.
The launch also builds on Bahrain’s wider plans to develop a maritime and steel recycling cluster. In 2024, ASRY signed an agreement with Maersk, APM Terminals and SULB Company to explore ship recycling initiatives in the kingdom.
