L&T to expand presence in China

02 Nov 2006

Mumbai: Engineering and construction major Larsen & Toubro Ltd will expand its presence in China. L&T, which recently set up a wholly owned subsidiary, L&T (Wuxi) Electric Company Limited (LTW) in Wuxi, announced plans to establish two more ventures in China – one in the valves sector and another in rubber to cater to the burgeoning needs of the country.

The state-of-the-art manufacturing unit in the booming city in east China''s Jiangsu province, set up with an investment of $11 million will make high-end switchgear.

L&T has already set up a plant to make high-end air circuit breakers (ACB) for which China is the world''s largest market.

LTW will manufacture and market its indigenously developed, high-end ACBs and moulded case circuit breakers (MCCBs) at the new factory, which will meet international quality and standard certifications. L&T plans to invest $11 million in the Wuxi facility and introduce new products in the growing Chinese market.

"China is now a major focus area for L&T not only to compete in the Chinese market but also to facilitate consolidation of its presence in other overseas market," said R N Mukhija president (operations), L&T. The company is looking at other opportunities in China to consolidate operations in the investor-friendly country, he said.

"L&T is setting up production facilities for valves business in east China''s Jiangsu province and rubber machinery in Qingdao in east China''s Shandong province," he said.