By Editors of Power Engineering
Toshiba Corp. may no longer take construction orders related to nuclear power station construction, which could effectively mark the company’s exit from the nuclear plant construction business.
The news comes as Shigenori Shiga, the company’s chairman, may resign over massive cost overruns at a power plant construction business recently acquired by its Westinghouse Electric Co. unit, Reuters and The Japan Times reported.
CEO Satoshi Tsunakawa said Toshiba will review Westinghouse’s role in new projects and whether it will embark on new power plant construction.
Additionally, Westinghouse Chairman Danny Roderick is expected to resign as president of Toshiba’s in-house energy systems and solutions company. Toshiba said nothing has been decided yet on the resignations.
Both Shiga and Roderick took their posts in the wake of an accounting scandal that caused Toshiba to reshuffle its management in 2015
Though Toshiba will cease to take new orders, it will still undertake maintenance and decommissioning. The company also plans to continue work on four nuclear plants already under construction in the United States.
Toshiba, which is facing an asset impairment loss of up to $6.08 billion, also plans to sell a minority stake in its chip business.
The expected resignation could come during the company’s April-December financial report on February 14.