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Toshiba cancels all nuclear plant construction, chairman to quit, causing happy anti nuclear activists in Japan!

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Kyodo — Jan 29
Toshiba Corp. will take no new orders related to the construction of nuclear power stations, with the company’s chairman expected to resign over the massive write-down that has doomed the company’s U.S. nuclear business, sources said Saturday.
The company’s decision to cease taking orders effectively marks its withdrawal from the plant construction business.

Toshiba said Friday it will review nuclear operations and spin off its chip business to raise funds by selling a stake in the new chip company, covering the expected write-down in the nuclear business which could reach 700 billion yen ($6.08 billion).

http://www.newsonjapan.com/html/newsdesk/article/118856.php

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January 28, 2017 - Posted by | Uncategorized

11 Comments »

  1. Reblogged this on Radiation Free Lakeland and commented:
    GOOD NEWS! Now we must make sure the many headed nuclear hydra doesn not grow a new head.

    Comment by mariannewildart | January 28, 2017 | Reply

    • Does this include Moorside? Or is it an old order?

      Comment by miningawareness | January 30, 2017 | Reply

      • The order appears to be on all outside construction but they are not clear on commitments that they have already made.. As Mitubushi are sueing them for 1 billion and they are selling their assets it seems unlikely that the UK investments would go ahead.. alot of stories are coming out over the last week but facts are slow in coming.. I think we have scooped the most important ones on this blog .. let me know if you find any thing out about the UK investments though.. Happy days i hope 🙂 Namamste

        Comment by arclight2011part2 | January 30, 2017

      • Toshiba is facing pressure to secure investment from a South Korean energy group and the UK government to keep afloat a multibillion-pound British nuclear power project as the Japanese conglomerate struggles with mounting financial difficulties.
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        Korea Electric Power Corporation (Kepco) has been in talks for months to join the NuGen consortium planning a nuclear plant at Moorside in Cumbria alongside Toshiba and Engie of France.

        The need for new partners has been increased by huge writedowns on Toshiba’s nuclear business in the US, which has left the group scrambling to shore up its balance sheet.

        As well as Korean capital, Toshiba is angling for UK government investment in the Cumbrian project after Theresa May’s administration recently signalled its willingness to put public money into new nuclear plants. This would represent a reversal of longstanding UK policy not to expose taxpayers’ money to the heavy expense and high risks involved in building nuclear reactors.

        A Whitehall official said it was “premature” to talk about government involvement in financing Moorside but several other people involved in the process or briefed on the matter said the option of public investment was on the table.

        But these people said a more immediate step to keep the scheme on track was the proposal for Toshiba to sell part of its 60 per cent stake in NuGen to Kepco, the utility majority-owned by the South Korean government.

        “Talks have been moving slowly but the financial difficulties facing Toshiba will hopefully focus minds on getting a deal done,” said one person close to the talks.
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        It emerged last month that the UK and Japanese governments were in talks about potential joint support for a new nuclear plant planned by Hitachi, another Japanese conglomerate, at Wylfa in Anglesey. One senior nuclear industry figure said these discussions also extended to potential government financing for Moorside.

        Shares in Toshiba have fallen by 44 per cent since the group warned last month that it would have to make writedowns of “several billion dollars” related to the $229m acquisition last year of Stone & Webster, the US nuclear construction company, by Toshiba’s US nuclear technology unit, Westinghouse.

        The losses relate to Westinghouse’s work with Stone & Webster on AP1000 pressurised water reactors of the kind to be used at Moorside.

        “Financing new nuclear reactors is very hard at the best of times and these are not the best of times for Toshiba,” said one industry consultant who works on nuclear projects.

        Toshiba and Kepco did not respond to requests for comment.
        Related article
        Toshiba: Shrinking to survive

        After a disastrous nuclear deal, the company could be forced to sell off its best assets

        There has also been speculation over the commitment of Engie, the French utility one-third owned by the French government, but NuGen told the Financial Times that both its shareholders were “committed to the development of the Moorside project”.

        NuGen has said in the past that it was seeking financing of £12bn-£15bn for Moorside, which is one of several new nuclear plants planned by the UK as part of efforts to replace old reactors and dirty coal-fired power stations due to be decommissioned in coming years.

        Mrs May, the prime minister, gave the go-ahead in September for the £18bn Hinkley Point project in Somerset, financed by EDF of France and CGN of China, which would, if completed, be the first new nuclear plant in the UK since the mid-1990s.

        Hinkley has roused controversy because of the high price of electricity — £92.50 per megawatt hour — guaranteed to EDF in return for building the plant. Greg Clark, business secretary, is looking at whether partial government financing could help reduce the overall cost of future projects.

        Public investment in new nuclear plants would be a striking illustration of Mrs May’s determination to intervene more heavily in industrial strategy, a policy she was expected to set out in a discussion paper on Monday.

        The UK Department for Business, Energy and Industrial Strategy said: “We are working closely with a number of developers on proposed new nuclear projects in the UK, as they develop their plans.” January 22, 2017

        by: Andrew Ward and Jim Pickard in London https://www.ft.com/content/c0b01308-e0aa-11e6-8405-9e5580d6e5fb

        Comment by arclight2011part2 | January 30, 2017

      • Toshiba launched a review of the British nuclear power generation project. We change the order acceptance policy by EPC (design, procurement, construction work), and adjust it in the direction specializing in equipment supply. It is also expected to consider plans to release the management rights of a power company that Toshiba will invest in as the source of nuclear power plants. Reduce involvement in the project and reduce future risk of loss. Meanwhile, the Japanese and British governments have agreed in principle with comprehensive cooperation in the field of nuclear energy in December 2016, and it is likely that Toshiba’s project review review will be affected.

        Toshiba may have a loss of 700 billion yen in the nuclear power plant project. As a measure to prevent future recurrence, the policy to reduce nuclear power plant overseas business was shown on 27th.

        In the UK, Toshiba plans to operate the nuclear power plant in 2024 at Moor Side in the central part of the country through “New Generation (New Generation)” electric company that invests 60%. Newgen gave final investment judgment in 18 years, total of three nuclear power plants, Toshiba and nuclear power subsidiary Westinghouse (W … https://www.nikkan.co.jp/articles/view/00415242

        Comment by arclight2011part2 | January 30, 2017

  2. Thanks for your work. Fingers crossed.

    Comment by miningawareness | January 30, 2017 | Reply

    • Thanks. I didn’t even get my fingers crossed yet! Korean KEPCO is involved with the mining company which is uranium mining in the area of the Grand Canyon and Bear Ears monument – their name suddenly slips my mind but it is under Bear Ears on my blog or under KEPCO. Korean is sinking in scandal, I think.

      Comment by miningawareness | January 30, 2017 | Reply

    • “…. and it is likely that Toshiba’s project review review will be affected…..” Slam dunk from the Nikken link 2017/1/30 05:00) Just in .. bye bye Toshiba/Nugen unless the tax payer bails them out..

      Comment by arclight2011part2 | January 30, 2017 | Reply

  3. […] Toshiba cancels all nuclear plant construction, chairman to quit, causing happy anti nuclear activists in Japan! Toshiba cancels all nuclear plant construction, chairman to quit, causing happy anti nuclear activis… […]

    Pingback by Nuclear Hotseat podcast news notes and links/sources for 31 January 2017 | Activist news source | January 31, 2017 | Reply

  4. Thank goodness South Africa (Pres Zuma) decided to avoid the Japanese nuclear offerings and go with the Russians who have the most experience when it comes to nuclear power plants melting and blowing up.

    Comment by Robert Harvey | February 2, 2017 | Reply


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