Westinghouse Bankruptcy Will Not Affect China AP1000 Nuclear Power Construction, SPIC Says

Lin Chunting / Yicai

2017-03-30

(Yicai Global) March 30 -- Even if Westinghouse does go in bankruptcy, this will not affect China's AP1000 nuclear power plant construction projects.

Yicai Global reporter learned that on March 29, Chairman of the State Power Investment Corporation (SPIC), and Chairman of the State National Nuclear Power Technology Company (SNPTC) Chairman Wang Binghua held a meeting, to discuss response measures to US Westinghouse Corp. filing for bankruptcy reorganization. The meeting said that Westinghouse's filing for bankruptcy reorganization will not affect China AP1000 construction.

On March 29, Japan’s Toshiba Corp. [TOKYO:6502] announced that Westinghouse Electric Co. and its US subsidiaries as well as the holding company of subsidiary companies other than Westinghouse -- Toshiba UK Nuclear Energy Holdings Co. (collectively ‘Westinghouse’), “had decided to file for bankruptcy reorganization to the US Federal Bankruptcy Court in New York pursuant to Chapter 11 of the US Bankruptcy Act on March 29, 2017. Westinghouse subsidiary companies will continue their daily operations, and it is expected that the relevant business lines will be reorganized in accordance with Chapter 11. Westinghouse, as a debtor, has received a USD800 million fund guarantee commitment to finance and protect the company's core business operations during the reorganization process.”

In the conference, SPIC informed Westinghouse to SPIC of the company to apply for bankruptcy reorganization. Westinghouse undertook to continue to perform its cooperation with the State Power Investment Corporation business in accordance with the contract during and after the bankruptcy reorganization. The meeting examined the restructuring of Westinghouse and its possible impact on SPIC-related cooperation business, and developed response measures.

Wang and Westinghouse executives afterwards held a conference call, and reached consensus on the above matters.

AP1000 project is the largest Sino-US energy cooperation project. SPIC has been in communication with Westinghouse executives, and will pay close attention to this reorganization. Fully aware of the importance of the China AP1000 project, the two sides have agreed to continue to put the project as a common priority task, and increase investment in resources to ensure achievement of the goal that the project will go into production within one year. The first Westinghouse-designed reactor is under construction in Shidao Bay, Shandong province, and slated for operation this year.

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