Electronics and machinery giant Toshiba Corp is considering selling its US subsidiary Westinghouse Electric Co. as one of its options in an ongoing review of its overseas nuclear operations, according to a report in Japan Times.
Toshiba is expected to suffer a loss of up to ¥680 billion from its US nuclear plant business. Against this background, Toshiba aims to eliminate the risks of further losses in the future by selling Westinghouse or lowering its equity stake in the unit, according to a statement credited only to ‘sources’.
At a news conference on Friday 27 January, Toshiba president Satoshi Tsunakawa unveiled a plan to review his company’s nuclear operations abroad.
As it appears difficult for Toshiba to find a buyer of Westinghouse, which is currently suffering heavy losses, the parent company is considering various other options, including selling some of the unit’s profitable segments, such as its nuclear fuel business.
Toshiba bought Westinghouse for some ¥490 billion in 2006, on the back of strong global demand for nuclear power plants. Westinghouse is currently constructing four nuclear reactors in the United States and four more in China.