Toshiba has agreed to pay $2.16bn to exit two troubled nuclear reactor projects currently being built by its Westinghouse Electric Company (WEC) subsidiary at the VC Summer Nuclear Station in South Carolina, US.
Under the agreement, Toshiba will pay $1.19bn to South Carolina Electric & Gas (SCE&G), which owns a 55% share in the project.
Go deeper with GlobalData
The company will also pay $976m to the state-owned utility Santee Cooper, which owns the remaining 45% stake. The payment is expected to be made in instalments staring from October and ending in September 2022.
According to Santee Cooper, some of these payments may be satisfied by distributions through the bankruptcy court process from WEC to SCE&G and Santee Cooper.
Santee Cooper president and CEO Lonnie Carter said: “We appreciate our customers’ patience while the analysis on cost and schedule for the project is being completed.
“Ultimately, we will make a decision that is in the best interests of our customers.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataConstruction of the nuclear reactors at VC Summer Nuclear Station was thrown into disarray when its main contractor Westinghouse filed for bankruptcy earlier this year, reported AP.
The over-budget project is meant to be online by January 2021 but is behind schedule.
