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http://www.world-nuclear-news.org/C-Toshiba-terminates-obsolete-agreements-with-CBI-1605165.html
Toshiba terminates obsolete agreements with CB&I16 May 2016
Toshiba and CB&I have agreed to terminate a number of agreements originally signed between Shaw Group and Toshiba related to construction of two Advanced Boiling Water Reactors (ABWRs) at the South Texas Project (STP). Since the agreements were signed in 2010, Shaw was acquired by CB&I, which later sold the reactor construction business to Westinghouse, itself a Toshiba company.
In November 2010, Shaw Group and Japan's Toshiba announced a global strategic partnership giving Shaw exclusive rights to provide engineering, procurement and construction (EPC) services for Toshiba ABWRs, including a contract for the planned STP reactors. Through that agreement, Shaw was to become the exclusive EPC contractor for Toshiba ABWRs in all countries except Japan and Vietnam for the next 20 years.
Shaw and its affiliate, Stone & Webster, was acquired by CB&I in 2013. Subsequently, Westinghouse - part of Toshiba - acquired CB&I Stone & Webster in December 2015.
Toshiba said it recognizes that, following the sale of its CB&I Stone & Webster unit, CB&I's business strategy is "now focused on sectors other than nuclear new build projects". As a result, it has reached agreement with CB&I to terminate the earlier agreements related to construction of ABWRs.
Meanwhile, Toshiba America Nuclear Energy (TANE), a wholly-owned US subsidiary of Toshiba, CB&I and Nuclear Innovation North America (NINA) - owner of the STP units 3 and 4 project - have also agreed that CB&I will be relieved of any future obligations related to the project.
Toshiba noted that terminating the agreements with CB&I "will improve the STP investment environment for future investors". However, it said that due to "current economic drivers in Texas and other related issues, it understands that NINA "does not plan to immediately commence construction of STP units 3 and 4".
TANE now becomes the sole EPC contractor of the STP units and will select an architect engineering company when the project moves to construction.
NINA was set up in 2008 by Toshiba and US utility NRG Energy, and applied for a combined construction and operation licence through the STP Nuclear Operating Company. The Nuclear Regulatory Commission granted those licence in February this year.
Researched and written
by World Nuclear News
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