Indian yard benefits from Japanese support

28 Dec 2011
L&T’s new Kattupalli shipyard

L&T’s new Kattupalli shipyard

Mitsubishi Heavy Industries (MHI) has agreed with L&T Shipbuilding Limited (LTSB), the shipbuilding arm of India's Larsen & Toubro Ltd to provide a range of technological support for construction of commercial vessels.

MHI says it has recently been proactively promoting development of its engineering business, centring on technology licensing, while LTSB has been seeking to strengthen its shipbuilding business through new technology. Under the agreement, which was due to be signed on 28 December, MHI will provide licensing and technology support, including training of LTSB engineers. The agreement lasts for an initial period of three years, with an option to extend beyond that time frame.

Support from MHI 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. Further support will include consultation relating to potential expansion of L&T's shipbuilding facilities in the future and to 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.

Training of LTSB engineers by MHI will begin in spring of 2012 at the Nagasaki Shipyard & Machinery Works and the Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture. In addition, MHI will send design, ship construction and quality control experts from its shipyards to India for training of LTSB employees.

MHI and L&T have been in partnership since 2007, with two joint ventures established to date in the power generation system sector. LTSB operates a shipyard in Hazira in India's northwestern Gujarat state, and it is currently building a new yard in Kattupalli, near Chennai, in the southeastern state of Tamil Nadu. MHI says that it now plans to extend its proactive exploration for, and aggressive development of, new engineering business opportunities relating to shipyards in emerging economies.

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