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Georgia’s half-built nuclear power station – Toshiba to the rescue?

Toshiba rescues half-built Georgia nuclear plant, CNN Money , 11 June 17Toshiba’s bankrupt nuclear unit left an uncertain future for two half-finished nuclear reactors in Georgia — but the company promised Saturday it will pour up to $3.68 billion into the project to finish it.The Tokyo-based company will pay out the billions to Georgia Power, a subsidiary of Southern Company, in installments between this coming October and January 2021.

 Southern Company said the deal will hand over management of the project from Toshiba’s(TOSYY) nuclear unit, Westinghouse, to Southern Company. Westinghouse filed for bankruptcy in March…….

Toshiba’s Westinghouse will still be involved with the project by way of lending engineering, licensing support, and the intellectual property rights needed for the project to Southern Company, the company said in a statement.

Toshiba’s nuclear construction efforts are at the heart of its current financial woes. Westinghouse was crippled by massive losses because the costs of its nuclear projects in the U.S. winded up “far surpassing estimates.”

Though Toshiba is known for making a vast array of product — from IT equipment to TVs and laptops — the nuclear program has dented profits so badly that the company said in April it has “substantial doubt” about its ability to stay in business.

Toshiba’s Westinghouse is also midway building two nuclear reactors in South Carolina, and the fate of that project still hangs in the balance. Toshiba said Saturday it’s “still in negotiations” with the project’s owners……http://money.cnn.com/2017/06/10/news/companies/toshiba-nuclear-plant-georgia-southern-co/index.html

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June 12, 2017 - Posted by | business and costs, USA

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