Marco Polo Marine (MPM) has unveiled plans to launch a green-scrapping facility in Indonesia as part of its diversification away from the offshore industry.
The Singapore-listed company said it has been awarded a permit by local authorities to conduct ship-recycling activities.
The company added that it has also become the first shipyard in Indonesia to be certified and awarded an ISO 30000:2009 certificate.
MPM said the ISO 30000 certificate is globally recognised and is often a prerequisite by shipowners as the shipping industry looks to comply with the new European Union Ship Recycling Regulation and the International Maritime Organization's Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
"Given the growing interest in sustainability by the shipping industry, we are excited to expand our shipyard services to include green ship recycling," MPM chief executive Sean Lee said.
"With the ISO certification by ABS QE, shipowners can be assured that their vessels are recycled in safe and environmentally sound facilities."
MPM's facility in Indonesia is based on the island of Batam and occupies a total land area of around 34 hectares with a seafront of 650 metres.
The shipyard has three dry docks, the largest of which was expanded last year from 150 metres to 240 metres, increasing the group's capacity for ship repairs by up to 20%.
MPM's diversification into the green-recycling sector follows a similar move into the offshore wind segment, which now accounts for around 20% of its group revenue.
The company, which underwent a debt restructuring in 2017, believes the offshore wind farm sector presents opportunities for the group.
"Although the specifications for vessels used to support the offshore wind farm projects are different from those used in oil and exploration projects, vessels can be deployed to support certain parts of the wind farm installation and construction without additional capital expenditure," MPM said in an investor presentation in 2021.
