Toshiba to pay $3.7 bn to keep building US reactors

Reuters TOKYO | Updated on January 12, 2018 Published on June 10, 2017

The logo of Toshiba Corp seen behind a traffic light at the company's headquarters in Tokyo, Japan. (File photo: Reuters)

Toshiba Corp will contribute $3.68 billion to continue building two nuclear reactors in the US state of Georgia, enabling the completion of a plant project begun by the Japanese conglomerate's now bankrupt nuclear unit.

Toshiba said in a statement on Saturday that it had reached an agreement with Georgia Power, a subsidiary of energy provider Southern Co, to begin payments from October till January 2021 to compete with the Vogtle plant.

The move comes after Georgia Power took over the plant's project management from Westinghouse Electric Corp, which filed for Chapter 11 bankruptcy in March.

Toshiba said it had already set aside loss reserves for the payment and it would not have an impact on its earnings projections.

The struggling conglomerate is rushing to find a buyer for its prized chip unit to cover billions of dollars in cost overruns at Westinghouse.

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Published on June 10, 2017
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