OREANDA-NEWS. December 27, 2011. Mitsubishi Heavy Industries Ltd. (MHI), Japan is to sign a technological collaboration agreement with L&T Shipbuilding Limited (LTSB) - the shipbuilding arm of Larsen & Toubro conglomerate - to provide a broad range of technological support for the construction of commercial vessels.

The agreement, under which MHI will provide licensing and technology support, including training of LTSB engineers, represents the successful convergence of the long term business interests of both companies. MHI has been proactively promoting development of its engineering business, centering on technology licensing, while L&T Shipbuilding has been seeking to strengthen its shipbuilding business through the introduction of technology from a global leader.

The agreement calls for MHI to provide support for an initial period of three years, with an option to extend beyond that time frame. In specific terms, support from MHI will comprise design support and a broad range of training, in 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 marketing efforts. Going forward, MHI and LTSB will market vessels built by LTSB under exclusive technical collaboration with MHI.

Commencing in early 2012, MHI will train L&T Shipbuilding engineers at the company's Nagasaki Shipyard & Machinery Works and the Shimonoseki Shipyard & Machinery Works in Yamaguchi Prefecture. In addition, MHI will depute experts in design, ship construction and quality control from its shipyards to India to impart training.

As India enhances its infrastructure in tandem with economic expansion, the country is focusing on a growth strategy that entails improvements in basic infrastructure, including better port facilities, and for the nurturing of its shipbuilding and shipping industries. As a result, the acquisition and accumulation of globally competitive shipbuilding technologies is a top priority for Indian industry.

With the latest shipbuilding technical collaboration agreement, L&T Shipbuilding and MHI plan to step up its aggressive development of new business opportunities relating to shipyards in newly emerging economies.

MHI and L&T have been partners since 2007, with two joint ventures established in the power generation system sector.