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Energy industries

Larsen & Toubro Bags Rs 3,680 Million Order from Chinese Power Generation Company

Strategic Insights

— 1 min read

Mumbai-headquartered engineering and construction major Larsen & Toubro Ltd (L&T) has secured a significant order from a Chinese power generation company, Datang International Power Generation Company Ltd, for the supply of critical gasification equipment. The contract, worth Rs 3,680 million (approximately US$82.4 million), is part of the company's coal-based olefin project in Duolun county, Inner Mongolia. This order further solidifies L&T's presence in the Chinese market, with the cumulative order booking of its heavy engineering division exceeding US$220 million.

Key Takeaways:

  • L&T has bagged a Rs 3,680 million (US$82.4 million) order from Datang International Power Generation Company Ltd in China for the supply of critical gasification equipment.
  • The equipment will be used in the company's coal-based olefin project in Duolun county, Inner Mongolia, and will produce 1.5 million tonnes per annum (TPA) of methanol.
  • The L&T's manufactured equipment will be used to produce polypropylene from propylene, which will be converted from methanol.
  • The company is scheduled to complete the despatch of equipment by September 30, 2007, and will depute its engineers and skilled workforce to Duolun to complete assembly of the despatched sections by February 15, 2008.
  • With this contract, the cumulative order booking of L&T's heavy engineering division from China exceeds US$220 million.
  • The company is currently executing orders for Coal Gasification equipment for a 500,000 TPA Methanol plant for Zhongyuan Project and a 20,000 bpd crude equivalent Direct Coal Liquefaction Plant of the Shenhua Group.
  • L&T's share price was traded at Rs 2735.15, up by 3.66% at the Bombay Stock Exchange on the day of the announcement.

Statistics:

  • The value of the order: Rs 3,680 million (approximately US$82.4 million).
  • The capacity of the gasification equipment: 1.5 million tonnes per annum (TPA) of methanol.
  • The target date for completing despatch of equipment: September 30, 2007.
  • The target date for completion of assembly of despatched sections by engineers and skilled workforce: February 15, 2008.
  • The cumulative order booking of L&T's heavy engineering division from China: US$220 million.
  • L&T's current share price: Rs 2735.15.

Sources:

  • PTI (Press Trust of India)
  • Larsen & Toubro Ltd (L&T)
  • Bombay Stock Exchange

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