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Toshiba reports $6.3bn loss in nuclear business, chairman to step down

EBR Staff Writer Published 15 February 2017

Japanese electronics and energy conglomerate Toshiba’s chairman, Shigenori Shiga, will step down from his position after the company reported a loss of $6.3bn in its nuclear business in the US.

Shiga, however, will remain as a Toshiba executive until a shareholder meeting scheduled to be held in June 2017.

The firm said that the Shiga was stepping down "to take management responsibility for the loss”.

Shiga said that the losses are related to Toshiba’s US subsidiary, Westinghouse Electric, acquisition of  nuclear construction and services business, CB&I Stone & Webster, from Chicago Bridge & Iron in 2015.

Toshiba was reported by New York Times as saying that the firm is considering to sell stake in Westinghouse.

Toshiba president and CEO Satoshi Tsunakawa was quoted by the publication as saying: "If we can find the right partner, we want to move in that direction.

“Every possibility is on the table.”

The company has also forecast JPY390bn ($3.43bn) in group net loss for the full year ending 31 March, a revise from earlier anticipated YPY145bn ($1.27bn) profit, reported Bloomberg.

Meanwhile, NuGen, a joint venture between Toshiba (60%) and France's Engie (40%), confirmed that Toshiba will continue to work on the development of the Moorside nuclear power station in Cumbria, UK.

NuGen CEO Tom Samson said: “The project has made significant progress since Toshiba took over as major shareholder in 2014.

“The site has already been proven as suitable for three Westinghouse AP1000 reactors, two phases of consultation have found the public overwhelmingly supportive of the need for new nuclear and have helped shape the plans for Moorside.”

NuGen is developing the nuclear project, which is expected meet approximately 7% of the UK's future electricity needs.


Image: Toshiba headquarters in Minato, Tokyo, Japan. Photo: courtesy of EXECUTOR/Wikipedia.