Mitsubishi Heavy Industries, Ltd. (MHI) signed an agreement under which it will license its UE low-speed diesel engine* technology to Vietnam Shipbuilding Industry Corporation (VINASHIN). With the move MHI aims to further promote penetration of its UE engines into the Vietnamese shipbuilding industry, which is expected to grow rapidly amid the current boom in international shipping.
Under the agreement, MHI will provide VINASHIN with the licensing rights to manufacture its large-sized diesel engines. The contract applies specifically to the Mitsubishi UEC-LA, LS, LSII and LSE engines with cylinder bores ranging from 330 to 680 mm. The licensing agreement also encompasses marketing and servicing of these engines in Vietnam. The period of licensing is from 2005 to 2014.
VINASHIN is a state-owned corporation, established in 1996, engaging in shipbuilding and production of ship-related machinery. Including its more than 50 subsidiaries, VINASHIN has roughly 15,000 employees and generates annual sales of US$160 million (2004).