Bangladeshi Prime Minister Sheikh Hasina Wazed announced that her administration is set to formulate a policy for the ship scrapping industry, in response to concerns about the environment and workers' safety.
"We are not against the ship-breaking industry. But, it should not be at the cost of environment. We are against disorderly activities," the prime minister said while addressing a gathering of engineering professionals in the southern port city of Chittagong.
Her announcement came a week after five workers died and 13 others were injured in a deadly explosion at the ship-breaking yard in a suburb of the port city.
Hasina also said she is concerned that scrap yards are harming the country's environment.
Ship breaking is flagged as an "extremely hazardous" industry in Bangladesh. Safety measures and environmental standards in its more than 80 scrapping yards are often ignored.
These yards produce thousands of tons of scrap metal used by re- rolling mills.
As many as 30,000 people are employed in the yards.
Environmental groups allege that the yard owners compel the beakers to take apart ships without clearing them of toxic materials.
At least 400 ship breakers have died over the past 20 years in the Sitakunda ship-breaking yards, the groups estimate.
Bangladesh, having no iron ore deposits, is dependent on the recycled steel for its fast growing economy. Nearly 50 per cent of all global ship scrapping is undertaken in the country, according to available statistics provided by the ship scrappage yards.