L&T to set up Rs 880 cr manufacturing unit

Engineering firm Larsen & Toubro on Monday said it will set up a manufacturing unit in India at an investment of Rs 880 crore along with Japan-based Mitsubishi Heavy Industries.

The proposed manufacturing JV, would be for supplying super-critical steam turbine and generator facility, and would have a product configuration catering to plant capacities ranging from 500 MW to 1,000 MW.

The production operation is expected to commence sometime during the later part of the financial year 2008-09, Larsen & Toubro said in a filing to the Bombay Stock Exchange.

The agreement follows the technology licensing and technical assistance agreement for manufacturing of super- critical turbine and generator, signed between L&T, MHI and Mitsubishi Electric Corporation (Mitsubishi Electric).

The product, an integral component of energy efficient coal based power plants is expected to meet the demand-supply gap.

MHI, a global heavy machinery manufacturers has consolidated sales of around 25 billion dollar.

Shares of the company were trading at Rs 4379, down 1.84 per cent on BSE in afternoon trade.

First Published: Nov 05, 2007 15:13 IST