Japan Crisis To Delay Toshiba Reactor Orders

May 24, 2011
New orders for parts may have to wait several years.

Japanese conglomerate Toshiba on Tuesday said its plans to win $12 billion in orders to build nuclear reactors may have to be delayed for several years as nations tighten safety after Japan's March crisis.

It said it targeted orders for 39 reactors worth 1 trillion yen by March 2016 but this may be put back after the March 11 quake and tsunami crippled an atomic plant and led to Japan's worst nuclear accident in 25 years.

The crisis at the Fukushima Daiichi complex -- in which cooling systems failed, triggering meltdowns in three reactors -- led a number of countries to reconsider their commitment to nuclear energy.

Toshiba has sent its engineers to the plant as workers battle to stabilise the facility roughly 220 kilometres (135 miles) northeast of Tokyo, which has spewed radiation into the air, sea and ground.

The company on Tuesday also said it planned to expand renewable energy products in wind, solar and geothermal power.

Last week it announced the acquisition of Swiss company Landis + Gyr, a specialist in "smart" metering technology.

The Japanese technology conglomerate now plans to spend 1.450 trillion yen on capital expenditure, investment and financing over the three years to March 2014. It will also spend 1.1 trillion yen on research and development.

Its wide-ranging operations include consumer electronics, semiconductors and electric power.

Toshiba rose 2.12 percent to 432 yen on the Tokyo Stock Exchange Tuesday on a bullish earnings outlook.

During trading hours it announced it expected to log an operating profit of 500 billion yen ($6.1 billion) in the year to March 2014, up 67 percent from a profit projected for the current year to March 2012.

Copyright by Agence France-Presse, 2011

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