L&T to set up Rs 880 cr manufacturing unit

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

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.