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Toshiba reaches $2.2 billion deal in South Carolina nuclear project

Staff Writer |
Toshiba has agreed to pay $2.168 billion to walk away from two unfinished nuclear reactors in South Carolina being built by its Westinghouse subsidiary, according to a statement by the owners of project.

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SCANA Corp and its partner, state-owned utility Santee Cooper, said Toshiba will make the payments in installments beginning in October and ending in September 2022.

Toshiba's Westinghouse Electric Co filed for bankruptcy in March, overwhelmed by the cost overruns at the VC Summer plant in South Carolina and a similar unfinished nuclear project known as Vogtle in Georgia. The projects are years behind schedule.

The agreement allows Toshiba and its Westinghouse unit to exit the nuclear construction business and caps Toshiba's liability for guaranteeing that Westinghouse complete the VC Summer contract.

Toshiba reached a similar agreement for $3.7 billion in June with the utilities, led by a unit of Southern Co, that own the Vogtle project.

Toshiba has warned that losses from Westinghouse threaten its future and it is considering bids for its flash memory chip unit, worth around $18 billion, to raise capital.

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