Larsen & Toubro bags Sinopec contracts worth $86 million
14 Dec 2006
Mumbai: Engineering and construction major Larsen & Toubro Ltd (L&T) has won two contracts worth a total of $86 million (Rs384.78 crore) from Chinese petrochemical company Sinopec.
L&T would design, manufacture and supply three ethylene oxide reactors, each weighing in excess of 1,000 tonnes, which would form part of the petrochemical plant of Sinopec, the company said in a filing with the Bombay Stock Exchange (BSE).
The company bagged the contract against competition from Japanese and German firms, which reflect the credibility of L&T in international markets for high technology manufacture, it added.
In the last two years, L&T has supplied equipment valued over $300 million, including the world's largest coal gasifier, and advanced acronitrile reactors, to China.
L&T has recently set up a factory for the manufacture of switchgear in Wuxi, Jiangsu and another one for making valves in Yangcheng, Jiangsu, both in China. The company would also set up manufacturing facilities for rubber processing machinery in Jionan, Qingdao.
The company is among the few firms in the world that has approval from the Chinese heavy industry ministry with SQL certification for supply of critical equipment.