L&T, Mitsubishi to sign shipbuilding pact

L&T, Mitsubishi to sign shipbuilding pact

Mumbai: Indian engineering and construction company Larsen & Toubro’s shipbuilding arm will sign a technological and licensing agreement with Japan’s Mitsubishi Heavy Industries Ltd (MHI) as both firms look for shipbuilding opportunities in emerging economies.

Mitsubishi and L&T Shipbuilding will eventually jointly market and sell commercial vessels, L&T said in a statement.

The companies will sign a three-year agreement starting early 2012, with an option to extend it.

L&T and Mitsubishi currently operate two joint ventures to manufacture power-related equipment, including super-critical boilers, and steam turbines and generators, which they signed in 2007.

At 11:00 am, L&T shares were trading 1.4% higher at Rs1,040.15 in a flat Mumbai market.