MHI to take stake in India shipbuilder

Kyodo

Mitsubishi Heavy Industries Ltd. plans to acquire a stake in L&T Shipbuilding Ltd. of India within a few years to secure its first shipbuilding base overseas, an MHI executive said.

The plan was revealed by Executive Vice President Hisashi Hara at a briefing Monday on the comprehensive heavy machinery maker’s business plans.

MHI is currently providing L&T Shipbuilding with technological assistance ranging from design drawings to quality control under a technical tieup agreement signed by the two companies last year.

Mitsubishi Heavy intends to provide capital to L&T Shipbuilding at a time when Japanese shipbuilders are struggling to win orders in competition with Chinese and South Korean rivals.