India’s L&T Shipbuilding to get technological support from Mitsubishi Heavy

Japan’s Mitsubishi Heavy Industries, Ltd. (MHI) is to provide technological support for the construction of commercial vessels to L&T Shipbuilding Limited (LTSB), the shipbuilding arm of India’s Larsen & Toubro Limited.

MHI will initially provide support for a period of three years, with an option to extend beyond that time frame. Specifically, MHI support will consist of the provision of design drawings of vessels built by MHI and a broad range of training, including areas such as design, material procurement, ship construction and quality control. It will also include consultation on potential expansion of L&T’s shipbuilding facilities in the future and overseas procurement of shipbuilding materials, as well as support for LTSB’s market research activities. MHI will receive payment from LTSB according to the actual support it provides. Going forward MHI and LTSB will conduct collaborative ship marketing activities by branding them as vessels built by LTSB under exclusive technical collaboration with MHI.

Based on the agreement, starting in spring of 2012 MHI will begin training of LTSB engineers at the company’s Nagasaki Shipyard & Machinery Works and the Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture. In addition, MHI will send experts in design, ship construction and quality control from its shipyards to India to train LTSB employees.

L&T, headquartered in Mumbai, is one of the largest companies in India’s private sector. Its activities include manufacturing of chemical plant equipment, power generation systems, and electrical and electronic products and systems. MHI and L&T have been in a partner relationship since 2007, with two joint ventures established to date in the power generation system sector.

LTSB already operates a shipyard in Hazira in India’s northwestern Gujarat state, and it is currently building a new shipyard in Kattupalli, near Chennai, in the southeastern state of Tamil Nadu.

On the back of the latest shipbuilding technical collaboration agreement with LTSB, MHI now plans to step up its proactive exploration for, and aggressive development of, new engineering business opportunities relating to shipyards in the newly emerging economies.

December 27, 2011