L&T and Mitsubishi in Heavy Tyre Joint Venture Reports
Engineering company Laursen & Toubro (L&T) and Japan-based Mitsibishi Heavy Industries (MHI) are reportedly planning to enter into a “heavy industrial tyre” joint venture in India. According to reports in India’s Business Standard, L&T has “initiated discussions with MHI to form a joint venture that would manufacture a wide range of heavy industrial tyres in the country.” Quoting a source close to the talks, the newspaper added: "This would bring in a good blend of high-technology from Japan and low-cost manufacturing from India. The JV would also help to create a great synergy in L&T's construction business."
The fact that MHI launched manufacturing of tyre production machinery in China in February 2010, with the establishment of a wholly-owned subsidiary Changshu Ryoju Machinery earlier this year shed additional light on the context of the story. “We are looking for an Indian partner to provide support in manufacturing industrial tyres. Currently, we are in talks with various companies including L&T for the same,” MHI’s senior vice president and general manager Yoichi Kujirai told local reporters.