Toshiba Corp. will cease taking orders related to the building of nuclear power stations, sources said Saturday, in a move that would effectively mark its withdrawal from the nuclear plant construction business. The news comes amid reports Toshiba’s chairman may resign over the massive write-down that has doomed the company’s U.S. nuclear business. The multinational conglomerate said Friday it will review its nuclear operations and spin off its chip business to raise funds in a bid to cover an expected asset impairment loss of up to ¥700 billion ($6.08 billion). After Toshiba ceases taking new orders, it will focus on maintenance and decommissioning operations, according to the sources. The company will continue work on four nuclear plants under construction in the United States that are expected to be completed by 2020. The Japanese industrial conglomerate may announce company chairman Shigenori Shiga’s resignation as soon as Feb. 14, when it reports its April-December financial results, the sources also said. Shiga once served as president of the U.S. nuclear unit, Westinghouse Electric Co., which Toshiba has said could face a multibillion-dollar loss due to cost overruns from delays in plant projects. The post of Toshiba chairman is expected to remain vacant after Shiga’s resignation. Westinghouse Chairman Danny Roderick is also set to step down, the sources said, but Toshiba President Satoshi Tsunakawa is likely to stay on.
Japan Times 28th Jan 2017 read more »
Toshiba Corp. has decided to withdraw from the business of constructing nuclear reactors overseas after forecasting a huge deficit for its U.S. subsidiary in the business year ending in March. The Tokyo-based electronics appliance maker said Jan. 27 the decision was taken to prevent business deficits from rising sharply again in the future. “We focused on the nuclear business among all of our energy businesses, but this will change,” Toshiba’s president, Satoshi Tsunakawa, said in a news conference on Jan. 27. “This will entail a review of our overseas (nuclear) business.” Toshiba had failed to grasp huge losses that would result from the purchase of a company that was constructing nuclear reactors by its subsidiary, Westinghouse Electric Corp. Reflecting on that failure, Toshiba plans to strengthen the supervision of its overseas nuclear business by putting related divisions under the direct control of the president. In the future, Toshiba plans to concentrate only on designing, manufacturing and supplying nuclear reactors. It will withdraw from the reactor construction business because of the difficulties in forecasting construction costs.
Asahi Shimbun 28th Jan 2017 read more »
Mainichi 29th Jan 2017 read more »