Engineering major Larsen & Toubro has decided to shut down its switchgear unit in China due to low growth and stringent competition from local low cost producers.

L&T in its annual report for 2011-12 said that "As the growth and profitability of the business has been low as compared to the plan, it has been decided to close the business. Accordingly, the plans to exit the business is awaiting Chinese government clearance.”

L&T had forayed into the switchgear space in China in 2006 with the establishment of the factory at Wuxi in Jiangsu province through Larsen & Toubro (Wuxi) Electric Company Ltd a wholly owned subsidiary of L&T International FZE, Sharjah. LTW mainly used to cater to the Chinese market.

Source - Economic Times

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