Toshiba to Withdraw from Texas Nuclear Plant Project

May 31, 2018

Tokyo- Toshiba Corp. said Thursday it will withdraw from a project to construct two advanced boiling water nuclear reactors in Texas.

The Japanese electronics and machinery maker aims to complete necessary procedures by the end of this year.

The project has been effectively frozen due to difficulty finding investors, soaring safety costs following the 2011 nuclear accident in Japan and falling electricity fees in the United States.

The decision is part of Toshiba's plans to pull out of overseas nuclear plant construction projects after the company suffered massive losses following last year's bankruptcy of Westinghouse Electric Co., a U.S. unit.

Toshiba has already decided to withdraw from projects to build a total of four reactors in the U.S. states of Georgia and South Carolina.

The company agreed to join the Texas project in 2008. It plans to cancel all related contracts.

Toshiba said it has already written off losses related to some 90 billion yen in claims and equity interest over the project. Jiji Press