The union for nuclear workers, GMB is demanding reassurance from the government after one of the major financial backers of the Moorside reactor project has gone bust. In light of the announced bankruptcy of Westinghouse, the union is looking for reassurances from the government about the security of the nuclear reactor project.
Westinghouse is the US nuclear unit for Toshiba and has filed for bankruptcy in the US after struggling with experiencing hefty losses that have also put its Japanese parent company into a crisis. The nuclear division of the well-known Japanese manufacturer has filed for bankruptcy protection after it has experienced huge cost overruns at two projects located in Georgia and South Carolina, USA. It has been revealed that the Japanese government was aware of the brandâs plans.
GMB first raised their concerns during the winter as Toshiba initially alerted their investors about their financial difficulty. During this time, NuGen, the Company who is delivering the Moorside development sought to reassure and suggest that the Moorside reactor project was still on track due to the information at the time which suggested that Toshiba hoped to sell its majority stake in Westinghouse.
Toshiba has been given permission twice to delay reporting its earnings until 11th April 2017. It is though that the nuclear services business is worth around one third of the industrial giantâs revenue. It is thought that Toshiba will expect a £5 billion write-down because its nuclear assets have been valued at a far lower amount than previously estimated.
It is thought that the bankruptcy could have wide reaching consequences for the UKâs future plans, which has caused GMB to demand that the government reassure the members of the sector. Toshiba has a 60% in NuGen, which was a joint venture with Franceâs Engie. It is NuGen that has the contract for the nuclear power plant in Moorside, West Cumbria.