Lloyd’s List – UK broker cements tie-up with giant Dalian recycling unit

(Written by Nigel Lowry)

12 December 2012 – IMO scrapping supremo Mikelis accepts post-retirement role

A NEW UK-based company is expected to source a major chunk of the tonnage to feed the world’s largest ship recycling yard, expected to come on stream early next year in northern China.

Harry Malandreniotis of Headway (London) has been engaged to represent Dalian Shipbuilding Industry Ship Recycling and assist it in acquiring vessels to be recycled in a new facility in Changxing Island, Dalian.

Mr Malandreniotis is a sales and purchase broker who in recent years has concentrated on advising clients on environmentally friendly and safe dismantling of vessels in selected yards in India and China.

Set to head up the new UK entity alongside him is Nikos Mikelis, who is head of the marine pollution prevention and ship recycling section of the International Maritime Organization’s marine environment division. He will retire at the end of this year under IMO rules.

As far as is known, the new company has not yet been named, but it is expected to recruit experienced recycling brokers in due course.

Headway (London) will separately continue its own business “as usual”, Mr Malandreniotis has told contacts.

Although the Dalian site is not expected to be fully operational until March or April, it is understood that a first bulk carrier is already being sought for scrapping next month.

Mr Malandreniotis’ mandate will cover vessels controlled from Japan, the US, Europe, the Middle East and the Indian subcontinent.

Purchases will be made on a cash basis, brokers are being told.

The Dalian site, heralded as the largest, most modern and best-equipped ship recycling base worldwide, is being created by Dalian Shipbuilding Industry, China’s biggest yard, and represents an investment of about $145m.

The site sprawls over 460,000 sq m and should be capable of recycling some 75 vessels per year.

It can handle vessels of up to the size of very large crude carriers.

The yard has pledged to recycle vessels in a safe and environmentally sound manner, in accordance with the guidelines of the IMO’s Hong Kong Convention.

China is the world’s biggest steelmaker by far, although only a relatively small quantity comes from shipbreaking.