Toshiba Can’t Shake Its Westinghouse Woes

12 Apr 2017   Japan

In a widely-expected move, Toshiba’s troubled nuclear construction business Westinghouse filed for Chapter 11 bankruptcy protection at the end of last month. Now the company is up for sale, after it cost Toshiba some $6.3 billion in asset write-downs, triggering a net overall loss estimated at $9.1 billion for 2016. The Japanese conglomerate is undoubtedly eager to curb these losses, but it is facing a serious problem: there is not an abundance of bidders. What some energy industry observes have called a nuclear renaissance for the U.S. has failed to materialize in full. The reasons for this are numerous and diverse, ranging from a slowdown in power demand instead of an expected increase, to cheap natural gas, rendering nuclear’s competitiveness virtually non-existent. Westinghouse is actually a great case in point: its troubles may not have started with the setbacks in ran into with its two new projects in the […]

Comments are closed.