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North Korea’s greatly increased plutonium stockpile

plutonium_04flag-N-KoreaNorth Korea’s Nuclear Weapons: Under Kim Jong Un, Plutonium Stockpile Has Reached Unprecedented Levels, International Business Times,  BY  @TIMMARCIN ON 01/12/17 In the past two years, North Korea has steadily increased its supply of plutonium and now has enough for 10 nuclear warheads, according to a report this week from the South Korean Ministry of National Defense. In all, South Korea’s 2016 Defense White Paper found that the North had increased its supply of weapons -grade plutonium to 50 kilograms, up from 40 kilograms two years ago, the Korea Times reported. The plutonium was obtained by reprocessing spent fuel rods.

Under the dictatorial rule of leader Kim Jong Un, North Korea has focused on developing its nuclear arsenal. More recently, North Korea has worked toward developing a reliable intercontinental ballistic missile (ICBM) that would be capable of carrying a nuclear warhead.

The increased stockpile comes amid continued threats from Kim. In a New Year’s speech, Kim provoked the West — the United States and South Korea especially — and claimed an ICBM was nearing completion…….

Should the North develop a reliable ICBM, it would likely have the capability of reaching the United States. A working ICBM could still be a ways off, however…….http://www.ibtimes.com/north-koreas-nuclear-weapons-under-kim-jong-un-plutonium-stockpile-has-reached-2474439 

January 13, 2017 Posted by | - plutonium, North Korea, weapons and war | Leave a comment

‘Monju was not worth dying for’ – says wife of top nuclear official, who suicided

flag-japanNuclear plant official’s widow: ‘Monju was not worth dying for’ Asahi  Shimbun By KEISHI NISHIMURA/ Staff Writer January 12, 2017 A question has haunted Toshiko Nishimura since she saw her husband’s swollen body in a hospital 21 years ago.

“What did he die for?”

Her husband, Shigeo, was a deputy chief of the general affairs department at Power Reactor and Nuclear Fuel Development Corp. (PNC).

His duties changed significantly after a fire and sodium leak occurred at PNC’s Monju prototype fast-breeder reactor in Tsuruga, Fukui Prefecture, on Dec. 8, 1995.

Shigeo was put in charge of the internal investigation of the suspected cover-up over the accident.

PNC, now the Japan Atomic Energy Agency (JAEA), entered the plant twice on the day after the incident and took video recordings of the damage.

However, the company only released the second video to the public, and that footage was heavily edited to cover up the extent of the accident.

On the morning of Jan. 12, 1996, Toshiko made a cup of coffee for her husband as usual, but he left for work without drinking it.

That evening, Shigeo appeared at a news conference to explain the sodium leak. Through his investigation, he and others knew the truth about the videos, but he gave false statements to the media about when the video footage came to the knowledge of PNC managers.

After the news conference, Shigeo is believed to have jumped to his death from the eighth floor of a hotel where he was staying. He was 49.

Toshiko, now 70, could not believe her husband would kill himself. Just days before his death, during the New Year break, their son announced his wedding plans.

Shigeo left a letter to his wife, but it did not mention the reason for the suicide.

PNC could not provide a satisfactory explanation to Toshiko, so she asked police officers, hospital workers, hotel staff and people at other places.

In 2004, she took legal action against the Japan Nuclear Cycle Development Institute, the successor of PNC, thinking that the testimonies of workers would give a clear account of what Shigeo was going through before his death.

But no details were revealed, and she lost the case.

She also joined an “anti-Monju movement” because she “could not forgive Monju for continuing to run at the sacrifice of human life.”

The Monju reactor, plagued by numerous problems, has proved a costly failure in the government’s plans for a nuclear fuel recycling program…..

Toshiko, meanwhile, is still involved in a lawsuit at the Tokyo District Court, demanding the return of her husband’s personal belongings that he left at the hotel.

She says she wants to tell Shigeo, “Monju was not worth dying for.” http://www.asahi.com/ajw/articles/AJ201701120001.html

January 13, 2017 Posted by | Japan, PERSONAL STORIES | Leave a comment

Coral bleaching kills 70 percent of Japan’s biggest coral reef

By TATSUYUKI KOBORI/ Staff Writer  January 11, 2017 Coral bleaching has killed 70.1 percent of the nation’s largest coral reef as of the end of 2016, up from 56.7 percent just a few months earlier, the Environment Ministry said.

Warmer seawater temperatures last summer are believed to have caused coral bleaching to spread to 90 percent of the Sekiseishoko coral reef in Okinawa Prefecture…….http://www.asahi.com/ajw/articles/AJ201701110028.html

January 13, 2017 Posted by | climate change, Japan, oceans | Leave a comment

China to build ANOTHER nuclear reactor in Britain – concern for nuclear regulator

Buy-China-nukes-1China Is Building Britain ANOTHER Nuclear Reactor, Daily Caller ANDREW FOLLETT Energy and Science Reporter  12 Jan 17 Britain’s nuclear regulators are considering whether another Chinese-funded and designed nuclear reactor should be built in Bradwell, Essex.

The reactor would be funded and designed by the state-controlled China General Nuclear Power Corporation (CGN) and the French power company Électricité de France (EDF). It could take British authorities up to four years to formally approve or reject the new reactor.

“The robust independence of the UK’s regulators is seen across the world as a key strength for nuclear in Britain,” Zhu Minhong, General Manager of CGN in Britain, told Reuters. “CGN and EDF will bring to this enterprise their joint experience in China, Britain and France over many years.”

The U.K.’s previous attempt to build a nuclear power plant with the exact same Chinese company didn’t got well.

British Prime Minister Theresa May almost cancelled a previous China-backed nuclear power plant at Hinkley Point due to its high costs and environmentalist opposition. The U.S. charged the Chinese company behind the Hinkley Point plant with nuclear espionage in August.

A columnist for a Chinese state-run media outlet called May’s reluctance to approve of the Hinkley Point nuclear power project a result of “China-phobia.” CGN agreed to pay about $8 billion of the reactor’s $24 billion dollar cost.

China’s ambassador to Great Britain issued an ultimatum over the delay earlier in August, pointing out Chinese companies have invested more in the U.K. over the past five years than in France, Germany and Italy combined.

EDF agreed in July to build the Hinkley Point nuclear reactors by 2025 after years of delays. If the reactors aren’t built, U.K. taxpayers could be on the hook for $31.6 billion, according to documents released by the government. EDF is still planning to build the reactors, despite the company’s serious financial problems and the fact that the project is below investment grade.

EDF previously delayed making a decision about Hinkley Point several times before finally approving it after already investing $2.85 billion. EDF is more than $40 billion in debt and has a history of abandoning or delaying similar reactors in France…….  http://dailycaller.com/2017/01/10/china-is-building-britain-another-nuclear-reactor/#ixzz4VZwv59yK

January 13, 2017 Posted by | business and costs, China, politics, UK | Leave a comment

Even more heavy losses for Toshiba’s nuclear business

Money down holeToshiba may face still heavier losses in U.S. nuclear business: source http://www.japantimes.co.jp/news/2017/01/12/business/corporate-business/toshiba-may-face-heavier-losses-u-s-nuclear-business-source/#.WHfi9NJ97Gg  KYODO Toshiba Corp. anticipates that total losses at its nuclear business in the United States could be larger than earlier stated due to a write-down at its subsidiary Westinghouse Electric Co., a source familiar with the matter said Wednesday.

The development may further taint the financial standing of the company that has been battling to overcome a massive window-dressing scandal.

Toshiba is finalizing the size of an impairment loss at Westinghouse, which could reach tens of billions of yen, ahead of the release of its group earnings report for the April to December period in mid-February, the source said.

Last month Toshiba said it may need to write down the value of assets at CB&I Stone & Webster Inc., a nuclear plant builder Westinghouse obtained in 2015, possibly by several hundred billion yen.

Toshiba believes the devaluation of CB&I Stone & Webster may have seriously undermined the value of Westinghouse, the source said.

The source said Toshiba estimated the final write down in connection with U.S. nuclear plant operations may reach up to ¥500 billion as of the end of last year, but the total amount could change as the company combed through their financial data.

Toshiba has been focusing on nuclear energy operations as its core business but has been struggling to win orders for new power plants both at home and abroad, particularly after the 2011 Fukushima nuclear disaster.

The company booked an impairment loss of about ¥250 billion in its U.S. nuclear business in the last fiscal year through March 2016.

January 13, 2017 Posted by | business and costs, Japan, USA | Leave a comment

Nuclear plant construction at center of town’s first mayoral race in 16 years

 Atsuko Kumagai, owner of Asako House is one of the candidates!

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AOMORI – Official campaigning began Tuesday for the first mayoral election in 16 years in the town of Oma, Aomori Prefecture, with four candidates battling it out over whether an under-construction nuclear plant is good for the community.

Voters will cast ballots Sunday for the first time since January 2001. The current mayor, Mitsuharu Kanazawa, 66, faced no challengers in the three previous elections.

Kanazawa, who is seeking re-election once again, supports the early completion of the nuclear plant that Electric Power Development Co., more commonly known as J-Power, started building in 2008 on the coast of the Tsugaru Strait between Aomori and Hokkaido.

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Two of the three other candidates oppose the construction, which was suspended in the aftermath of the 2011 Fukushima nuclear crisis. The plant’s targeted start for commercial operation is currently set for fiscal 2024.

One of the candidates is Hideki Sasaki, 67, a former member of the municipal assembly in Hakodate, Hokkaido, located about 30 km across the Tsugaru Strait from the construction site. Sakaki, who moved to Oma, opposes the construction.

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Another is Atsuko Kumagai, 62, the head of a citizens’ group who owns land near the construction site. She also objects to the plant’s construction and proposes reinvigorating the town through fishing and tourism.

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The final candidate is Naofumi Nozaki, a 61-year-old former Oma town official. He has criticized the current town administration for excessive dependence on government nuclear power plant subsidies and has pledged to restore the town’s fiscal health and revitalize the local community.

http://www.japantimes.co.jp/news/2017/01/10/national/politics-diplomacy/nuclear-plant-construction-center-towns-first-mayoral-race-16-years/#.WHT8e1zia-d

January 10, 2017 Posted by | Japan | , , , , | Leave a comment

NPO members donate 12 million yen in taxes to anti-nuclear city

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Tamotsu Sugenami, left, a staff member of the office for JBC CSR Fund, hands over a list of donation to Imari Mayor Yoshikazu Tsukabe in the Imari city government office in Saga Prefecture on Jan. 6.

 

IMARI, Saga Prefecture–In seeking something scholarship recipients can sink their teeth into, five staff members of a nonprofit organization in Tokyo searched for a worthy recipient of their tax payments.

Impressed with the Imari mayor’s anti-nuclear stance, the staffers contributed 12 million yen (about $102,600) of their tax money to the city government here.

In return, they’ll receive about 380 kilograms of delicious Imari beef to distribute to scholarship winners, including many affected by the Kumamoto earthquakes.

The five used the “Furusato nozei” (Hometown tax) system, which allows people to divert part of their local tax payments to their favorite local governments. In return, many of those governments send local specialties to donors.

The NPO, named JBC CSR Fund, a scholarship organization, plans to distribute the meat to 223 high school students, including 129 impacted by the powerful earthquakes in Kumamoto last April.

The NPO gives scholarships to high school students who have academic capabilities but are in financial difficulties due to their family circumstances.

The organization considered presenting the beef it would receive to scholarship recipients by utilizing the Furusato nozei system. In consideration, it chose Imari, a production center of the brand beef.

The NPO decided on the city as its mayor, Yoshikazu Tsukabe, expressed opposition to the restart of the Genkai nuclear power plant in Genkai, Saga Prefecture, in 2016. Imari is located within a 30-kilometer radius of the nuclear plant.

On Jan. 6, Tamotsu Sugenami, a staff member of the office for the fund, visited the Imari government and handed over the documentation for the donation to Tsukabe.

While referring to an interview that ran in the Jan. 3 Asahi Shimbun in which Tsukabe expressed his opposition to the restart, Sugenami complimented the mayor, saying, “We quickly became fans of Imari.”

In response, Tsukabe said, “I was encouraged, although I tend to be isolated (due to my opposition to the nuclear plant).”

The mayor also said, “Once the nuclear power plant is restarted, it will be difficult to stop again. As the plant’s operations are suspended now, it is time to switch to anti-nuclear policies.”

He added, “I will deliver delicious Imari beef to high school students (through the NPO).”

Each of the 223 students will be able to enjoy about 1.7 kilograms of beef.

http://www.asahi.com/ajw/articles/AJ201701080018.html

 

January 9, 2017 Posted by | Japan | Leave a comment

Japanese govt influencing nuclear safety research? Questionably low estimate of earthquake risks in Turkey

nuke-earthquakeQuake risk for Japanese-French nuclear plant in Turkey lowered to keep costs down, sources say, Japan Times, 8 Jan 17,  Government-commissioned research firms have come up with a questionably low estimate for how badly an earthquake could rattle a nuclear power plant being built in Turkey by a Japanese-French venture, sources say.

The estimated “peak ground acceleration” — the term for ground motion caused by a quake — for the plant in the Black Sea province of Sinop is significantly lower than estimates given for quake-prone Japan’s nuclear power plants, and that means it could be an attempt to reduce construction costs, the sources said Saturday.

Turkey is often struck by earthquakes.

The peak ground acceleration for the Sinop plant was estimated at around 400 gal (or 400 cm per second squared), but some experts said it should be “at least 500 gal, based on Japanese standards” and the topography and geography around Sinop.

For instance, the assumed ground acceleration is 620 gal for Kyushu Electric Power Co.’s Sendai nuclear power plant and 856 gal for Kansai Electric Power Co.’s Oi plant.

 The assessment was part of a study commissioned by the Agency for Natural Resources and Energy, which is overseen by the Ministry of Economy, Trade and Industry. The aim of the study was to examine potential nuclear power plant construction deals involving Japanese companies in Turkey and Vietnam……..

According to Japanese researchers, active faults are suspected to be present around the site of the envisioned plant. In 1968, a magnitude-6 temblor struck west of the site, and Turkish researchers have warned of the possibility of a major quake occurring in the region again. Residents are protesting the project. http://www.japantimes.co.jp/news/2017/01/08/business/quake-risk-japanese-french-nuclear-plant-turkey-underestimated-keep-costs-sources-say/#.WHMQs9J97Gg

January 9, 2017 Posted by | Japan, safety, Turkey | Leave a comment

Slowdown in Indian company’s effort to develop nuclear power, renewables now more favoured

NTPC’s foray into nuclear energy in DAE’s court http://www.thehindubusinessline.com/economy/ntpc-nuclear-energy/article9466853.ece TWESH MISHRA NEW DELHI, JANUARY 8:  

NTPC’s efforts to get into nuclear power have slowed down even as the public sector power generation behemoth is focussing more on renewable energy.

A senior company official said the uncertainty due to higher tariff cost, along with some earlier ‘legislative hurdles’ are the reasons for lesser excitement for nuclear power projects.

The Parliament cleared the amendment to the Atomic Energy Act 1962 on December 31, 2015. This allowed the joint venture PSUs (public sector undertakeings) to build and operate nuclear power plants.

Impact of delay

NTPC officials BusinessLine spoke to said that ASHVINI — the joint venture between NTPC and Nuclear Power Corporation of India — was to be allocated the 2×700 MW Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) project in Haryana. But due to delays in the amendment to the law, NPCIL decided to go ahead and build the plant itself.

In 2010, the then Department of Atomic Energy (DAE) Secretary, Srikumar Banerjee, had said that one of the sites identified by the DAE for the 2×700 MW plant would go to a NTPC and NPCIL joint venture company.

In 2011, NTPC-NPCIL formed the Anushakti Vidhyut Nigam Ltd (ASHVINI) with the objective of building nuclear power plants.

But the JV could not begin building nuclear power plants as the Atomic Energy Act did not allow joint ventures of PSUs for the same.

NTPC officials say that the expected power tariff from GHAVP is likely to be close to ₹10/kWh. Further, the plant will be commissioned in another 10 years.

High cost a concern

Assessing the subdued price of power in the country and the low price of renewable energy, officials said that the high tariff cost will be of concern when the plant is commissioned.

Considering that amendments to the Atomic Energy Act have been approved, it is now the prerogative of the DAE to allocate GHAVP to ASHVINI, according to NTPC officials.

In 2014, the estimated cost of the entire project of 28 GW, to be built in two phases, was envisaged at ₹20,594 crore.

January 9, 2017 Posted by | India, politics | Leave a comment

Global renewable energy market is dominated by China

text-relevantflag-ChinaChina cementing global dominance of renewable energy and technology  It now owns five of the world’s six largest solar-module manufacturing firms and the largest wind-turbine manufacturer, Guardian, . 6 Jan 17China is cementing its global dominance of renewable energy and supporting technologies, aggressively investing in them both at home and around the globe, leaving countries including the US, UK and Australia at risk of missing the growing market.

A report by the Institute for Energy Economics and Financial Analysis (Ieefa) found China’s dominance in renewables is rapidly spreading overseas, with the country accelerating its foreign investment in renewable energy and supporting technologies.

Analysing Chinese foreign investments over US$1bn, Ieefa found 13 in 2016, worth a combined $32bn. That represented a 60% jump over similar investments in 2015.China was already widely recognised as the largest investor in domestic renewable energy, investing $102bn in 2015, according to Bloomberg New Energy Finance – more than twice that invested domestically by the US and about five times that of the UK.

The big foreign investments in 2016 included two in Australia, two in Germany and two in Brazil, as well as deals in Chile, Indonesia, Egypt, Pakistan and Vietnam.

  • In Australia, China Light & Power struck a $1.1bn deal, buying power from wind and solar farms.
  • In Chile, Tianqi Lithium spent $2.5bn acquiring a 25% stake of a lithium miner and processor. (Lithium is essential for lithium batteries used in electric vehicles and home battery storage.)
  • In Germany, Beijing Enterprises Holdings Ltd spend $1.6bn on a Waste to Energy development.

The report noted the global expansion cements China’s total domination of renewable energy growth globally. China now owned:

January 7, 2017 Posted by | China, renewable | Leave a comment

US govt denies North Korea’s claims on its nuclear missiles, but international concerns grow

missiles s korea museumUS Rejects North Korea’s Nuclear Claim Amid Growing Concerns http://www.voanews.com/a/us-rejects-north-korea-nuclear-claim-amid-growing-concerns/3665388.html, 5 Jan 17, Amid speculation surrounding North Korea’s nuclear capabilities, the U.S. government said this week that Pyongyang has yet to acquire the ability to outfit an intercontinental ballistic missile with a nuclear warhead.

The latest assessment came after North Korean leader Kim Jong Un’s statement that the preparations for launching an intercontinental ballistic missile had “reached the final stage.” His claim, in a New Year’s Day address, immediately sent ripples across the world’s capitals, prompting President-elect Donald Trump to tweet, “It won’t happen!”

Despite the U.S. rejection of North Korea’s purported capability, experts are raising concern about the threats emanating from the regime. Continue reading

January 7, 2017 Posted by | North Korea, weapons and war | Leave a comment

Climate Change brings danger of conflict in Central Asia

climate SOSHow climate change in Central Asia is threatening to spark regional conflict
Lower water supplies, caused by rising temperatures, is increasing risk of political tensions, Chinese researchers warn  
SCMP, Stephen Chen, 06 January, 2017Competition for dwindling water supplies from a mountain range in Central Asia could erupt into regional conflict, Chinese researchers have warned.

Global warming and retreating glaciers in the Tianshan range – the “water tower” of the region – have raised the spectre of water shortages that will affect “the relationship between countries in Central Asia,” the researchers warned in a report on the Chinese Academy of Sciences’ website.

Central Asia is a dry, landlocked hinterland and Tianshan is the tallest and biggest mountain range in the region. About 2,500km long and up to 350km wide, the range winds through numerous countries including Uzbekistan, Kyrgyzstan, Kazakhstan and the Xinjiang region in China.

Its seasonal snowmelt contributes most of the water for the majority of rivers in Central Asia.

But over the past decade, the range has been losing its “total water storage” at a rate of about 223 million cubic metres per year, according to the research led by Professor Chen Yaning from the academy’s Xinjiang Institute of Ecology and Geography in Urumqi.

The culprit, the researchers say, is rising temperatures.

Since 1960, annual average temperatures in the area have been rising at 0.3 degrees Celsius per decade, resulting in warm winters and less snow.

In a paper last year detailing some of their findings, Chen and colleagues warned that the situation “may pose great danger for the water tower and influence the water supply for the oasis and desert regions”.

“This may lead, within just a few decades, to some rivers running out of water in the dry season,” they said…….http://www.scmp.com/news/china/diplomacy-defence/article/2059862/water-conflicts-central-asia-pose-threat-chinas

January 7, 2017 Posted by | ASIA, climate change | Leave a comment

China’s $493 billion plan for renewable energy

text-relevantflag-ChinaChina to spend $493 billion on green power by 2020 http://www.abc.net.au/news/2017-01-05/china-to-spend-$493-billion-on-renewable-fuel-by-2020/8164434    China will plough 2.5 trillion yuan ($493 billion) into renewable power generation by 2020, the country’s energy agency says, as the world’s largest energy market continues to shift away from dirty coal power towards cleaner fuels.

The investment will create over 13 million jobs in the sector, the National Energy Administration (NEA) said in a blueprint document that lays out its plan to develop the nation’s energy sector during the five-year 2016 to 2020 period.

The NEA said installed renewable power capacity including wind, hydro, solar and nuclear power would contribute to about half of new electricity generation by 2020.

China’s Green Energy Push

The agency did not disclose more details on where the funds — which equate to about $98 billion each year — would be spent.

The investment reflects Beijing’s continued focus on curbing the use of fossil fuels, which have fostered the country’s economic growth over the past decade, as it ramps up its war on pollution.

Last month, the National Development and Reform Commission (NDRC), the country’s economic planner, said in its own five-year plan that solar power would receive 1 trillion yuan of spending, as the country seeks to boost capacity by five times.

The spending comes as the cost of building large-scale solar plants has dropped by as much as 40 per cent since 2010. China became the world’s top solar generator last year.

Concerns about the social and economic costs of China’s air pollution have increased as the northern parts of the country, including the capital Beijing, have battled a weeks-long bout of hazardous smog.

January 6, 2017 Posted by | China, renewable | Leave a comment

China criticises India’s nuclear weaponry, says Pakistan should have the same nuclear “privileges”

Pak should have privileges as India in nuclear development: Chinese state media   Hindustan Times,  Jan 05, 2017 India has “broken” UN limits on nuclear arms and long-range missiles and Pakistan should also be accorded the same “privilege”, state-run Chinese media said on Thursday as it criticised New Delhi for carrying out Agni-4 and 5 missile tests whose range covers the Chinese mainland.

“India has broken the UN’s limits on its development of nuclear weapons and long-range ballistic missile,” the ruling Communist Party-run tabloid Global Times said in its editorial.

“The US and some Western countries have also bent the rules on its nuclear plans. New Delhi is no longer satisfied with its nuclear capability and is seeking intercontinental ballistic missiles that can target anywhere in the world and then it can land on an equal footing with the UN Security Council’s five permanent members,” it said.

………At this time, Pakistan should have those privileges in nuclear development that India has,” it said, indicating that China which shared all-weather ties with Islamabad will back it if it develops long-range missiles.

“In general, it is not difficult for India to produce intercontinental ballistic missiles which can cover the whole world. If the UN Security Council has no objection over this, let it be. The range of Pakistan’s nuclear missiles will also see an increase. If the world can adapt to these, China should too,” it said.

The references to violation of UN rules by the daily were significant as the Chinese foreign ministry spokesperson Hua Chunying while reacting to India’s Agni-5 missile test said on December 27 that ”on whether India can develop this ballistic missile that can carry nuclear weapons, I think relevant resolutions of the UNSC have clear rules”. http://www.hindustantimes.com/india-news/pak-should-have-privileges-as-india-in-nuclear-development-chinese-state-media/story-ac8Oad5ab7abln3mfzNlcM.html

January 6, 2017 Posted by | China, India, Pakistan, politics international, weapons and war | Leave a comment

Accounting scandal at Toshiba – ruinous overpayment for an American nuclear firm

corruptionToshiba admits to a ruinous overpayment for an American nuclear firm Its share price plunged by 40% in three days as investors worried about its financial viability, The Economist, Jan 7th 2017 | TOKYO THE probe in 2015 into one of Japan’s largest-ever accounting scandals, at Toshiba, an electronics and nuclear-power conglomerate that has been the epitome of the country’s engineering prowess, concluded that number-fiddling at the firm was “systemic”. It was found to have padded profits by ¥152bn ($1.3bn) between 2008 and 2014. Its boss, and half of the board’s 16 members, resigned; regulators imposed upon it a record fine of $60m.

Now its deal-making nous is in doubt too. In December 2015—the very same month that it forecast hundreds of billions of yen in losses for the financial year then under way, as it struggled to recover from the scandal—Toshiba’s American arm, Westinghouse Electric, bought a nuclear-construction firm, CB&I Stone & Webster. One year on, on December 27th, Toshiba announced that cost overruns at that new unit could lead to several billions of dollars in charges against profits.

 Its shares fell by 42% in a three-day stretch as investors dumped them, fearing a write-down that could wipe out its shareholders’ equity, which in late September stood at $3.1bn. Moody’s and S&P, two ratings agencies, announced credit downgrades and threatened more. Toshiba’s explanation for how it got the numbers so wrong on a smallish purchase is woolly. But it is clear that missing construction deadlines on nuclear-power plants can send costs skyrocketing. Its projects in America, and in China, are years behind schedule. Mycle Schneider, a nuclear expert, says that in America, as elsewhere, engineering problems are compounded by a shortage of skilled manpower. Few plants have been built there recently.

Part of the $229m that Westinghouse paid for CB&I Stone & Webster included $87m of goodwill (a premium over the firm’s book value based on its physical assets). It is that initial estimate that is now being recalculated.

Toshiba had looked to be bouncing back from its accounting nightmare………

Toshiba’s central part in a plan by the government of Shinzo Abe, the prime minister, to pep up growth by exporting nuclear-power technology to emerging countries may help. In June Westinghouse clinched a deal in India to build six new-generation AP1000 reactors, Toshiba’s first order since the triple meltdown at the Fukushima Dai-ichi nuclear plant in 2011. Toshiba is also involved in that site’s costly and complex clean-up. Some think that Japanese banks, known for keeping zombie firms on life support, will stand behind it, come what may. Shares in Toshiba’s two main lenders, Sumitomo and Mizuho, slid last week after the profit warning. Investors expect more big bank loans or a debt-for-equity swap, which allows a bank to turn bad loans into shares.

The consensus on Toshiba’s latest screw-up is that a long-standing culture of poor management is to blame…..http://www.economist.com/news/business/21713896-its-share-price-plunged-40-three-days-investors-worried-about-its-financial

January 6, 2017 Posted by | business and costs, Japan, secrets,lies and civil liberties, USA | Leave a comment