Engineering major Larsen & Toubro, is setting up a large heavy engineering facility at Sohar in Oman to manufacture high-pressure heat exchangers and reactors used by the hydrocarbon sector.
"The facility will come up at the area adjoining our open fabrication yard at Sohar. Initially, we will invest $50 mn in the venture," L&T Board Member and Senior Executive Vice-President (Heavy Engineering) M V Kotwal told.
The investment on the plant would gradually go up depending on business opportunity, he said.
The engineering major has an open fabrication yard for modular construction of offshore equipment for manufacturing drilling rigs at Sohar.
L&T saw a huge market opportunity for high-pressure heat exchangers and reactors in that area since several projects worth billions of dollars were coming up in Saudi Arabia and Kuwait in the hydrocarbon sector, he said.
"We have already started construction of the project and hope the plant will go onstream in a year," Kotwal said.
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So far, L&T exported high-pressure exchangers and reactors from its Hazira facility in Gujarat to cater to the Middle East market, he said.
Once operational the company would save significantly on cost of transportation. "We will, however, continue to export from the Hazira facility," Kotwal said.