MHI to license shipbuilding technology to L&T Group of India

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

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The two companies will sign the technical collaboration agreement tomorrow. MHI has recently been proactively promoting development of its engineering business, centering on technology licensing, while LTSB has been seeking to strengthen its shipbuilding business through the introduction of technology from a leader in the field. In reaching the latest agreement, under which MHI will provide licensing and technology support, including training of LTSB engineers, the intentions of the two companies have thus converged.

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The agreement calls for MHI initially to provide support for a period of three years, with an option to extend beyond that time frame. Specifically, support from MHI to LTSB 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. Support activities will further 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.

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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.

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