Toshiba, the venerable 80 year old Japanese electronics giant, appears to be going bankrupt.Toshiba was supposed to have announced at least $7 billion in losses during an earnings call yesterday. Instead, it cancelled the report, saying “it was not able to immediately secure the approval of its auditor.” Financial Times reports that “The delay to publication of Toshiba’s earnings came as the company said lawyers were examining claims by a whistleblower in the US that Westinghouse mishandled its takeover of Stone & Webster.” Toshiba’s losses stem from its construction of new nuclear plants in the United States. The collapse of Toshiba will result in the halting of all new nuclear power plant construction by its US-based subsidiary, Westinghouse. While the EPR’s delays will likely be longer, and while Toshiba and Areva will restructure their nuclear businesses differently, it is notable that both companies bet — and lost — big on radically new designs. Why did Westinghouse push forward with a new and untested design — the AP-1000 — in the first place, instead of building more of the same reactors it had in the past?
Energy Collective 17th Feb 2017 read more »