The recycling of vessels provides a huge resource of steel and other metals and machinery which is used to produce other goods and services. It was always assumed that ship recycling was best conducted in a mechanized way and therefore could be undertaken by industrialized countries ie United States and Western Europe etc. However it is now recognized that is is actually Labour intensive and best conducted Southern Asian countries like India, Pakistan, Bangladesh and China where there is a abundance of cheap labour. This has resulted in substantial benefits for the Economies and welfare of these countries.

Why Alang Has Prospered

Due to good difference of Low/High Tides making beaching of vessels close to the recycling yards possible. Suitable climate in which ship breaking can take place round the year. Due to high population the labour force is in abundance and low cost. A lucrative local domestic market for steel compare to regular furnace-based plant The state of Gujarat where the Alang is situated, highly industrialized and ranked ONE in India fro manufacturing, this give the extra advantage to ship recycling.