Westinghouse Bankruptcy Caused by Nuclear Power Plant Cost Overruns

“The environment of nuclear power is so severe at this moment, it was not a sustainable business”, said Kazunori Ito, an equity analyst at Morning Star. The drop of oil prices combined with the Three Mile Island and Fukushima accidents made nuclear power less lucrative, and plant construction kept getting stonewalled, said Ogasawara. USA nuclear power generating capacity has remained flat since 1990, according to the Energy Information Administration.

In 2015, when work on four new AP1000 reactors in SC and Georgia was already years behind schedule and billions of dollars over budget, Westinghouse struck a deal to buy the nuclear construction firm that had been its contractor in the field.

Among Westinghouse’s biggest creditors are the US utilities that commissioned the two nuclear plants, sources have said. Westinghouse also said it will continue projects in China, and that its operations in its Asia and Europe, the Middle East and Africa aren’t affected by the bankruptcy filing.

Westinghouse Electric, the United States nuclear power plant giant, has filed for bankruptcy protection, threatening a further blow to the UK’s atomic energy programme.

On Wednesday, Westinghouse Electric Company, a subsidiary of Japanese company Toshiba, filed for Chapter 11 bankruptcy protection.

In a statement, Toshiba said Westinghouse’s application for bankruptcy meant the supply of reactors from the U.S. to Moorside was now “uncertain”. It previously said Westinghouse lost 712.5 billion yen ($6.2 billion) from April to December of past year.

SCANA is holding a conference call with its investors 3 p.m. Wednesday.

It hopes to raise at least $9 billion and the company has said it believes the unit will be valued at around $18 billion.

One investor pointed out the firm described both the chip and nuclear businesses as core units of Toshiba just previous year. The project, with an expected completion date in 2020, has already exceeded the projected budget and timeline.

The U.S. business is at the heart of the collapse, stemming from the ill-conceived acquisition of a U.S. nuclear construction company in 2015. Westinghouse declined to comment.

Westinghouse has 12,000 employees globally, including 4,500 in the Pittsburgh region.

Thursday’s shareholder meeting saw chief executive Satoshi Tsunakawa and other managers face angry questions about the chaotic past few months.

“We are going to express quietly at the working level the concern that if several different things happen in a bad way, there’s a potential national security issue here”, the official said.

“Basically, Westinghouse has backed out of the contracts in place and will renegotiate contracts with those utilities which will have to bear previous cost overruns on their projects”, he said.