German Investors Eye Opportunities in Bangladesh’s Ship Recycling Sector During Visit to PHP Yard in Chattogram
Chattogram, 9 April 2025 — A high-profile delegation of 11 German investors, led by Ambassador Achim Tröster, visited the PHP Ship-Breaking and Recycling Yard in Sitakunda, Chattogram, this afternoon to explore potential investments in Bangladesh’s growing ship-recycling industry. The visit, which forms part of a broader tour in the lead-up to the upcoming Investment Summit in Dhaka, showcased Bangladesh’s evolving ship-recycling capabilities and its move toward environmentally responsible practices.
The delegation, comprising senior representatives from various German industrial, environmental, and investment firms, toured multiple sections of the PHP yard. They observed firsthand the facility’s upgraded technological infrastructure and commitment to sustainable recycling processes. The PHP yard, one of the few ship-breaking facilities in Bangladesh certified for “green” recycling practices under international standards, has been steadily gaining attention as a model for safe and environmentally conscious ship dismantling in South Asia.
Zahirul Islam, Managing Director of PHP Ship-Breaking and Recycling Industry, welcomed the delegation and provided detailed insights into the yard’s operations. Speaking to the media following the visit, Zahirul noted the investors’ appreciation of the infrastructure and eco-friendly practices that have been implemented at the yard in recent years.
“The delegation was very impressed by our commitment to sustainability, worker safety, and the use of environmentally responsible methods for recycling ships,” he said. “They expressed a genuine interest in how Bangladesh is evolving in this sector, particularly in the context of compliance with European Union and international environmental norms.”
According to Zahirul, the visit is a significant milestone not only for PHP but for Bangladesh’s entire ship-recycling industry, which has long been under global scrutiny for its safety and environmental record. He explained that showcasing the yard’s progress to a discerning European audience was an opportunity to shift perceptions and attract foreign business.
“This visit could open up new doors,” Zahirul said. “The investors are considering the possibility of sending German and other European vessels to our green yards for dismantling and recycling. That would mark a major step forward, both economically and in terms of global confidence in our capabilities.”
Ambassador Achim Tröster, who has previously spoken about deepening German-Bangladeshi economic cooperation, emphasized the importance of sustainable development in global trade and industrial processes. While speaking informally with PHP officials, he acknowledged the yard’s efforts in modernizing and aligning with international standards.
The ambassador also highlighted that the visit to Sitakunda was part of the German delegation’s broader initiative to explore investment prospects in Bangladesh ahead of the “Bangladesh Investment Summit 2025,” scheduled to be held at the Hotel InterContinental in Dhaka on Wednesday. The summit will serve as a platform for Bangladesh to pitch its business-friendly policies and infrastructure to potential foreign investors.
The visiting German delegation included notable figures such as Philipp Gläser, Thomas Koening, Werner Kemper, Mathias Peer, Alexandra Lutz, Anna Westenberger, Claudia Wilkens, Almut Rößner, Ines Budarick, and Dr Katharina Berner. These representatives come from diverse sectors, including maritime logistics, industrial recycling, renewable energy, environmental auditing, and sustainable finance — sectors that align closely with the evolving ship-recycling industry in Bangladesh.
The PHP yard, part of the larger PHP Group, has been at the forefront of efforts to “green” Bangladesh’s ship-breaking sector. Over the last decade, the yard has invested heavily in infrastructure improvements, safety training for workers, and environmental compliance measures. These include impermeable floors, drainage systems for hazardous waste, and strict protocols for the handling and disposal of oil and asbestos — all of which are vital in meeting international standards such as those set out in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
Bangladesh remains one of the world’s top destinations for ship recycling, alongside India, Pakistan, and Turkey. However, the industry has historically drawn criticism over environmental degradation and unsafe labor conditions. In recent years, however, several yards — including PHP — have worked to change that narrative.
Zahirul Islam believes that foreign partnerships could help accelerate that transformation. “With German interest and possibly collaboration, we can take this industry to new heights. It’s about aligning with global sustainability goals while still generating jobs and contributing to the economy,” he said.
The potential benefits are indeed substantial. Attracting European ships for dismantling would not only increase business for local yards but also elevate the industry’s global image. Moreover, compliance with stricter environmental regulations would open the door for Bangladesh to become a trusted hub for green ship recycling — a sector expected to grow as more vessels reach end-of-life amid rising environmental concerns in global maritime industries.
As the delegation prepares for the Investment Summit in Dhaka, today’s visit to Sitakunda may well be a preview of deeper partnerships to come — ones that combine economic opportunity with environmental responsibility.
