Dalian Shipbuilding to Construct $140 Million Recycling Facility

According to an article by Seatrade Asia, Dalian Shipbuilding Industry, China’s largest state-owned shipbuilder, is planning on building a scrap metal recycling facility in China.

The scrap yard will be located in the northern Liaoning province in China and will be around 460,000 square meters in size. The article notes that the facility could start operations by the middle of 2012

When fully operational, the yard will be capable of breaking down about 75 ships a year, ranging from 50,000 dwt (deadweight tonnage) to 300,000 dwt. Scrap metal from the dismantled ships would be melted to create new steel that would be used by Dalian Shipbuilding to build new ships.

Dalian Shipbuilding, owned by China Shipbuilding Industry Corp., has invested around $140 million on the recycling project. The yard, named Dalian Shipbuilding Industry Ship Recycling, is 67 percent owned by Dalian Shipbuilding, 18 percent owned by Singapore's Pacific International Lines and 15 percent owned by Angang Steel.