Manama, Bahrain – 21 July 2024: A memorandum of understanding (MoU) was recently signed between the Ministry of Transportation and Telecommunications, the Ministry of Industry and Commerce, and A.P. Moller – Maersk to evaluate and establish a ship recycling initiative in the Kingdom of Bahrain.

The signing ceremony was also attended by strategic partners taking part in the project, which included the Arab Shipbuilding and Repair Yard Company (ASRY), SULB Company, and APM Terminals Bahrain, the operator of Khalifa Bin Salman Port and a subsidiary of A.P. Moller – Maersk.

According to the MoU, the Ministry of Transportation and Telecommunications and the Ministry of Industry and Commerce will provide regulatory support to ASRY, which will oversee equipping the yard and docks for ship recycling. A.P. Moller – Maersk will act as the technical and operational advisor, ensuring the implementation of sustainable practices in the ship recycling process. Notably, SULB will play a vital role by utilizing the steel from this process, further processing and recycling it for both local and international markets, thereby contributing significantly to sustainable development in the region.

Formed as a joint venture between Foulath Holding (51% stake) and Japan’s Yamato Kogyo (49% stake) in 2009, SULB is the Middle East region’s fully integrated medium and heavy beams and structural steel sections producer.

SULB operates two plants in Hidd, Kingdom of Bahrain and Jubail, Kingdom of Saudi Arabic. SULB produces 1.7 Mtpa of Direct Reduced Iron from iron ore pellets, 1.2 Mtpa of steel and delivers almost 800,000 tons of finished beams, angles and channels. Steel beams are required for the creation of infrastructure related to heavy industries like refineries, steel and petrochemical plants as well as in high rise buildings, bridges, airports, convention centres and other long span architecture.