August 1, 2024

Sojitz Contributes Funding to Start-up Developing Next-generation Shipbreaking Technology– Recycling Scrap Steel Recovered in the Shipbreaking Process to Contribute to the Realizationof a Decarbonized and Circular Society –Sojitz Corporation (“Sojitz”), Circular Maritime Technologies International B.V. (“CMT”), a Netherlandsbased start-up currently developing next-generation shipbreaking technology, and Jansen Recycling
Group (“Jansen”), a ferrous and non-ferrous metals recycling company, have concluded a strategic
partnership agreement for the joint development of a new technology that aims to automate, accelerate,and reduce labor needs in the shipbreaking process. In addition, Sojitz has contributed funding forverification testing of the new technology. By increasing the number of shipbreaking yards that comply
with Europe’s strict environmental regulations and efficiently recovering high-quality scrap steel, Sojitz,
CMT, and Jansen aim to contribute to the steel industry’s ongoing transition to the use of large-scale
electric arc furnaces to achieve low-carbon manufacturing of steel products.

[Concept image of the shipbreaking facility under development]

A significant number of ocean-going vessels, including large-scale cargo vessels built in response toglobal economic growth of the 2000s, are expected to reach the end of their service life and requiredismantling in the coming years. However, there is a lack of shipyards that meet the environmental
standards required for ship recycling internationally. Most of the world’s shipbreaking is carried out incountries including India and Bangladesh, and the majority of ships are dismantled in compliance withthe IMO Guidelines on Ship Recycling, a regulation established to ensure labor safety andenvironmental protection in the shipbreaking industry. Additionally, Europe has also established its own
set of regulations that require shipyards to implement more stringent environmental protection measures.
The number of shipyards that meet these stricter guidelines worldwide is limited, and this shortage has
raised concerns that the pace of shipbreaking may slow significantly in the future.

Meanwhile, the global steel industry has set a target of achieving carbon neutrality by 2050 and is
working towards decarbonization of the steel manufacturing process. By the 2030s, the industry aims
to transition from the conventional blast furnace method, which involves the reduction of iron ore withcoal, to an alternative method that uses electric arc furnaces and relies on scrap steel as the key raw
material, thereby reducing CO2 emissions by roughly one-fourth. The quality of scrap steel used in thisproduction process will have a major impact on the quality of the resulting steel products. Ensuring astable supply of high-grade, low-impurity scrap steel is therefore emerging as a critical issue, and steel
recovered from retired vessels constructed with high-quality materials could be utilized to address thisdemand. The technology under development by CMT is anticipated to provide a solution to these twosocietal challenges faced by the shipbreaking and steel manufacturing industries.

Co-funded by the European Union,* CMT is developing a technology that aims to facilitate the efficient
recovery of high-quality, low-impurity scrap steel in line with the strict European recycling standards.
CMT’s process to automate, accelerate, and reduce labor needs will make the shipbreaking process
circular, safe, and competitive. Sojitz aims to contribute to the realization of a decarbonized and circularsociety through its involvement in funding and commercialization of CMT’s next-generation shipbreakingtechnology.

*Development of CMT’s new technology is partially co-funded by the European Union.

[Related Information][Company Overview – Circular Maritime Technologies International B.V.]
Established2022

Location

Kamerlingh Onnesweg 10c, 2991 XL Barendrecht, The Netherlands

Representative
Frank G. Geerdink
Director
Repair and maintenance of ships and boats, engineering and other technical
Main Businessdesign and consultancy[Company Overview – Jansen Recycling Group]
Established2014

LocationKoggehaven 3, 3133 LA Vlaardingen, The Netherlands

Representative
Klaas Jansen
Director
Main Business

Recycling of ferrous and non-ferrous metals

Contact: Sojitz Corporation

双日株式会社 広報部

Public Relations Dept.

+81-3-6871-3404

東京都千代田区内幸町 2-1-1 TEL:03-6871-3404 hodo@sojitz.com