- Bahrain expands green ship recycling capacity in Gulf
- Priya Blue marks first overseas recycling expansion
Bahrain-based Arab Shipbuilding & Repair Yard (ASRY) and India’s Priya Blue Group have announced a joint venture to establish a large-scale compliant ship recycling facility in Bahrain, significantly strengthening ship recycling infrastructure in the Middle East Gulf region. The partnership aims to develop a “world-class facility” focused on environmentally responsible recycling of ships and offshore assets.
The joint venture will utilise ASRY’s existing shipyard infrastructure, including dry docks, slipways, and alongside recycling operations, enabling the facility to recycle vessels up to ULCC size. In addition to conventional vessels, the yard will also handle complex offshore assets such as FPSOs, FSOs, offshore rigs, and other offshore structures directly at berth.
Operational structure and facility capabilities
Under the partnership structure, Priya Blue-affiliated cash buyer Best Oasis will support vessel sourcing and commercial acquisition activities for the Bahrain recycling facility. The project will include integrated recycling solutions covering hazardous waste management, environmental compliance, safety management systems, heavy lifting infrastructure, drydock access, and regulatory support within Bahrain.
ASRY already holds licences required for recycling vessels containing hazardous materials and naturally occurring radioactive material waste, which remains one of the key operational challenges in offshore asset recycling. According to the report, the first vessel under the new joint venture has already arrived at the ASRY yard, although its identity has not yet been disclosed.
Strategic significance for ship recycling sector
The development marks a major strategic expansion for Priya Blue Group and represents one of the first instances of a major Indian ship recycler establishing operational ship recycling infrastructure outside South Asia. Priya Blue chairman Sanjay Mehta stated that Bahrain should not be viewed as an experiment, but rather as a deliberate expansion of a proven recycling operation developed at Alang.
Meanwhile, ASRY chief executive Ahmed Al Abri highlighted that the partnership aligns with Bahrain’s long-term strategy to strengthen environmentally compliant ship recycling operations in line with the Hong Kong Convention and EU Ship Recycling Regulation standards. The project is also expected to strengthen the Middle East’s role in the global green ship recycling sector.
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