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Nuke tie-up?

August 22, 2018


4 firms in talks over nuclear business tie-up



Four Japanese companies are negotiating a possible tie-up in the nuclear power business. They are utilities Tokyo Electric Power Company and Chubu Electric Power Company, and electronic makers Hitachi and Toshiba.

People familiar with the matter say the 4 firms are in talks on a future tie-up in the operation of nuclear power plants, their construction and maintenance.

The 4 companies are all involved in operating or manufacturing of boiling water reactors, which are the same type of reactors at the Fukushima Daiichi nuclear power plant.

The plant is in the process of decommissioning after a disaster occurred there in March 2011 following a powerful earthquake and tsunami.

Hitachi and Toshiba are having difficulties to gain new orders for building nuclear plants in Japan, where the Fukushima disaster has effectively halted their construction.

The 2 makers are also facing a tougher business environment overseas, where stricter safety requirements have pushed up construction costs for nuclear power plants.

The 4 companies are discussing multiple plans, including one that calls for merging their nuclear businesses in the future.

However, their talks may not go smoothly as TEPCO is engaged in decommissioning the Fukushima plant and the 4 firms have different stances on overseas business.

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