The contractor that Scana Corp. hired to build two nuclear reactors in South Carolina went bankrupt. Its credit ratings are at risk of downgrades. Its shares have plunged. And now some of the people hired to help finish its reactors aren’t showing up for work. Scana executives assured South Carolina regulators during a meeting Wednesday that work continues on the two units being installed at the V.C. Summer plant, despite its contractor, Toshiba Corp.’s Westinghouse Electric unit, filing for Chapter 11 last month. But the Cayce, South Carolina-based utility owner also said construction manager Fluor Corp. has reported a “high incidence” of new hires failing to show up for training since Westinghouse went bankrupt.
Bloomomberg 13th April 2017 read more »
Toshiba Corp., the embattled electronics and machinery giant once deemed a blue-chip company representative of Japan Inc., is seeking to survive the latest crisis deriving from huge losses in its nuclear power business in the United States by selling off its cash cow semiconductor unit to raise funds to pay off debts and restore financial health. While it remains uncertain whether the sale of memory chip business will proceed as hoped, Toshiba needs to realize that its survival will still depend on fixing its management and governance problems that brought it down to its current low state. The failure of Toshiba’s investment in Westinghouse signals the company’s poor control over its overseas nuclear power business. There must have been chances over the years for Toshiba to review the profitability and future prospect of the nuclear business — and reassess the business where necessary. The current crisis can be attributed to its management’s failure to take such steps. Toshiba must come to grips as to why.
Japan Times 14th April 2017 read more »
The battle for control of Toshiba’s semiconductor business has taken a new twist after reports that Apple is considering teaming up with its supplier Foxconn in a joint bid for the world’s second-biggest flash memory chipmaker. Apple’s entry into the fray could help to allay Japanese government concerns over the transfer of Toshiba’s sensitive technology to overseas investors that it may deem to be a risk to national security, particularly those from China. Although Foxconn is Taiwanese, it has close links with China, where many of its core research and development, design and manufacturing operations are based. Its factories spread across 28 campuses, employ hundreds of thousands and account for around 3.5 per cent of China’s imports and exports.
Times 15th April 2017 read more »