South Korea is pushing to establish a larger presence in green ship recycling, with Elegant Exit Company teaming up with local recycler RM Company and ISSAC Green Tech to develop what the partners say could become one of Asia’s largest dismantling hubs, according to Splash247.
The South Korea recycling partnership
The three companies have signed a memorandum of understanding covering a facility capable of handling large oceangoing ships, Splash247 reported. The project combines RM’s existing recycling operation with floating drydock and automation technology from ISSAC Green Tech. No investment figure, capacity, location or startup date has been disclosed, according to Splash247.
RM Company already operates Sungha Shipyard and describes the facility as South Korea’s largest ship dismantling yard, the outlet reported. The recycler has built up a coastal scrap logistics network and uses heavy guillotine equipment capable of cutting steel plate up to 60 mm thick, Splash247 said.
The deal builds on Elegant Exit’s earlier push into industrial-scale recycling, according to Splash247. The company carried out a pilot recycling project at ASRY in Bahrain and, in 2024, announced an order for six plus six large floating drydocks intended for recycling projects both inside and outside OECD countries.
Japan’s parallel project targets 2028
South Korea’s move comes as another advanced Asian maritime economy looks to bring large-scale ship recycling closer to home, Splash247 reported. Japan’s NYK and Oono Development are targeting a 2028 startup for a recycling operation at Chita in Aichi prefecture with capacity for around 300,000 tonnes a year, equivalent to about 20 panamax ships. The 810 m drydock is large enough to accommodate two VLCCs simultaneously, with the partners looking to use heavy machinery and automation to offset Japan’s higher costs and labour shortages, according to Splash247.
| Project | Location | Capacity | Target startup | Key technology |
|---|---|---|---|---|
| South Korea (Elegant Exit, RM, ISSAC Green Tech) | Undisclosed | Undisclosed | Undisclosed | Floating drydock and automation; 60 mm steel-cutting guillotine |
| Japan (NYK, Oono Development) | Chita, Aichi prefecture | ~300,000 tonnes/year (about 20 panamax ships) | 2028 | 810 m drydock (two VLCCs), heavy machinery and automation |
Regulatory backdrop
The developments come after the Hong Kong Convention on ship recycling entered into force in June 2025, according to Splash247. South Korea formally acceded to the convention last December, committing the country to the new global regime governing environmental and worker-safety standards at recycling facilities, Splash247 reported.
Implications for shipowners and operators
For shipowners and operators, the disclosed details are limited to the MoU itself, according to Splash247. The source reported the three companies signed a memorandum of understanding covering a facility capable of handling large oceangoing ships, but no investment figure, capacity, location or startup date has been disclosed. That means operators cannot yet factor specific South Korean capacity into fleet-renewal or vessel-disposal plans, Splash247 reported.
The Japan project provides a concrete benchmark: around 300,000 tonnes per year at Chita, targeting 2028, with an 810 m drydock capable of holding two VLCCs simultaneously, according to Splash247. Both initiatives operate in the context of the Hong Kong Convention, which entered into force in June 2025, and South Korea's formal accession last December, the outlet reported.
Watch list
- Any disclosure of investment, capacity, location or startup date for the South Korea facility.
- Progress of Japan’s NYK and Oono Development project toward the 2028 startup at Chita.
- Implementation of Hong Kong Convention standards at South Korean recycling facilities following the December accession.
Sources:
