Toshiba is scaling back ambitions for its nuclear business, highlighting the depths of the company’s financial crisis and the failing economics of nuclear construction. The move, which was announced by the company’s president on Friday in Tokyo and could see Toshiba ruling itself out of future nuclear construction bids around the world, follows an emergency board meeting earlier in the day to discuss the survival of one of Japan’s best known industrial conglomerates. Toshiba’s nuclear climbdown deals a blow to Japan’s broader ambitions of bidding for nuclear construction projects around the world — a key aim of Prime Minister Shinzo Abe’s “Abenomics” economic revival programme and a driving force behind his unprecedented global diplomatic push.
FT 27th Jan 2017 read more »
Toshiba Corp said it will sell a minority stake in its memory chip business as it urgently seeks funds to offset an imminent multi-billion dollar writedown, adding that its overseas nuclear division – the cause of its woes – was now under review. The drastic measures are set to be just some of the tough choices the Japanese conglomerate will have to take as proceeds from the sale are likely to only cover part of a charge that domestic media has put at $6 billion. Still battered by a 2015 accounting scandal, Toshiba was plunged back into crisis when it emerged late last year that it had to account for huge cost overruns at a U.S. power plant construction business recently acquired by its Westinghouse division.
Reuters 27th Jan 2017 read more »